Smith & Nephew announces £500m deal to buy American medical firm
The medical equipment giant has bases around the world
By Hull Daily Mail | Posted: 13 Mar 2019
Smith & Nephew has announced it has agreed a deal to buy an American medicine firm for more than £500m.
The FTSE 100 manufacturer, headquartered in Hull, revealed earlier this year it was on the hunt for new acquisitions in 2019, after buying fellow medical tech company Ceterix for up to £80m in January.
Smith & Nephew has now blown that deal out of the water, by announcing it has struck a deal with Osiris Therapeutics – a US firm which specialises in regenerative medicine products.
Namal Nawana, CEO at Smith & Nephew, said: “Greater presence in the fast growing regenerative medicine market enhances our portfolio and will help immediately accelerate our wound management business as well as provide longer term innovations in additional channels and indications.
“We sought out a fast-growing portfolio with strong clinical evidence addressing critical needs in the marketplace.”
Smith & Nephew's facility in Hull (Hull Daily Mail)
Smith & Nephew has announced the deal to buy Osiris is worth around $660m (£504m).
Osiris hit sales of more than $100m in the first nine months of 2018, and will this week release its full-year results.
Two of its products, Grafix and Stravix, accounted for more than 70 per cent of those sales.
Grafix is a type of skin substitute which is applied to wounds, including those with exposed bone and tendon.
Stravix is a special tissue used in surgery to support soft tissue repair.
Peter Friedli, chairman and co-founder at Osiris, said: “I am immensely proud of the business we have built from our research into advanced regenerative technologies.
“Smith & Nephew is the best new owner to take these products forward, widening access to more customers and restoring quality of life for more patients.”
The deal is expected to be concluded in the second quarter of 2019.
Osiris’ 360 employees will then join Smith & Nephew.
Simon Fraser, president of advanced wound management at Smith & Nephew, said: “Grafix offers a compelling new option for managing hard to heal wounds and Stravix expands our tissue repair portfolio.
“We will drive synergies across products from common call points and increased access to our wider customer base.”
The acquisition comes as Smith & Nephew aims to increase its own revenue by up to 3.5 per cent in 2019.