Smith & Nephew to buy Rotation Medical for $210m

24 October 2017 (Last Updated October 25th, 2017 19:51)

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.

Smith & Nephew to buy Rotation Medical for $210m
Rotation Medical’s medical implant. Credit: Smith & Nephew.

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.

"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.