UK-based medical technology firm Smith & Nephew has signed a definitive agreement to purchase US tissue regeneration technology developer Rotation Medical for a total of approximately $210m.
Intended to support Smith & Nephew’s growth strategy, the deal will see an initial cash consideration of $125m followed by up to $85m over the coming five years, based on financial performance.
Designed for repair of shoulder rotator cuff, Rotation Medical’s system features a technology that combines biomechanics and biology for improving the natural healing response of the body.
The ability of the system to trigger new tendon-like tissue growth is expected to heal tendons by potentially preventing tear progression and minimising incidence of re-tears.
To allow reproducible procedures, the bioinductive implant comes with a disposable arthroscopic instruments set.
Smith & Nephew CEO Olivier Bohuon said: “The Rotation Medical rotator cuff system is an innovative technology serving unmet clinical needs.
“It is highly complementary to our Sports Medicine portfolio and provides a compelling new treatment option for our customers.”
The implant can be used alone for partial tears, as well as in combination with rotator cuff tear treatment continuum or Smith & Nephew’s standard anchors and suturing technologies to repair complex tears.
According to data from clinical studies, the implant improved tendon healing by triggering growth of new tendon-like issue, leading to thick tendons and tissue defects replacement.
The rotator cuff system is set to be available through Smith & Nephew’s sports medicine and Rotation Medical’s associated sales forces.
Subject to customary conditions, the acquisition is estimated to be complete by the end of this year.