Smith & Nephew to spend up to £80m buying US medical tech firm
The medical equipment giant has bases around the world
By Hull Daily Mail | Posted: 7 Jan 2019
Smith & Nephew has agreed to buy an American medical technology firm in a deal which could rise to more than £80m.
The Hull-headquartered medical equipment manufacturer will pay an initial $50m (£39.6m) to acquire Ceterix Orthopaedics Inc, followed up to $55m (£43.6m) over the next five years.
Ceterix is the developer of a device which helps surgeons repair meniscal tears – an injury found in the knee.
In America, more than a million meniscal tear operations are carried out every year.
In just 15-20 per cent of cases, the meniscus can be repaired rather than removed. The NovoStitch Pro gadget which Ceterix developed hopes to double that number.
Brad Cannon, president of sports medicine at Smith & Nephew, said: "NovoStitch Pro is an outstanding technology that addresses an unmet clinical need.
“We are excited by the opportunities to take this new option to our customers.
“No other company is better positioned to support changing clinical practice as the standard for meniscal treatment pivots from resection to repair.”
The NovoStitch gadget allows surgeons to repair a greater range of meniscal tears in the knee.
The product will now be sold through Smith & Nephew’s extensive sports medicine sales team.
The deal between the two companies is expected to be completed in early 2019, subject to conditions.
When completed, it could be worth more than £80m, representing a huge investment from Smith & Nephew.
John McCutcheon, CEO at Ceterix, said: "We are proud of the impact our technology has made in developing the meniscal repair market and are excited by the opportunity to reach many more customers and their patients as an integrated part of Smith & Nephew's extensive Sports Medicine portfolio.”
Founded in Hull by Thomas James Smith in 1856, Smith & Nephew now has bases across the world.
In America, the manufacturer operates in Massachusetts, Tennessee and Texas.
A few months before Mr Smith’s death in 1896, the chemist was joined by his nephew, Horatio Nelson Smith, and the business become known as Smith & Nephew.
In November last year, the company announced it was on track to meet its 2018 target, after a strong third quarter for trading.
The Jackson Street-based business saw revenue soar to £1.03bn in the quarter, and enjoyed great success in its emerging Chinese market.