Smith & Nephew has agreed to acquire regenerative medicine products developer Osiris Therapeutics for a total cash consideration of $660m.
Osiris Therapeutics focuses on products for orthopaedics, sports medicine and wound care applications. Its portfolio includes Grafix, Stravix, BIO and Cartiform.
Grafix is a cryopreserved placental membrane designed for direct application to acute and chronic wounds, while Stravix is a cryopreserved placental tissue intended for use as a surgical cover or wrap to support soft tissue repair. BIO is a bone matrix and Cartiform is an allograft meant for articular cartilage repair. These products are currently exclusively distributed by third parties.
Grafix and Stravix contributed to more than 70% of the company’s revenue in the first nine months of 2018. Smith & Nephew expect that these products will continue to deliver strong growth into the medium term.
Osiris Therapeutics generated $102m in total revenue for the nine months ended 30 September 2018, which increased by 18.7% compared with 2017.
Smith & Nephew CEO Namal Nawana 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.”
Subject to customary closing conditions, the acquisition is expected to be completed in Q2 2019. Osiris’ workforce of 360 people is expected to join Smith & Nephew.
Smith & Nephew has also entered an agreement to acquire Brainlab’s orthopaedic joint reconstruction business to drive research and development (R&D) in digital surgery and augmented reality.
Brainlab’s business offers digital workflow tools for surgeons. The deal covers some intangible assets and the orthopaedic Brainlab salesforce.