Smith & Nephew Announces Two Acquisitions

Smith & Nephew announced two acquisitions at AAOS this week, expanding their wound healing and robotic surgery offerings.

First, the company announced they would augment their regenerative medicine and wound healing portfolio with the acquisition of Osiris Therapeutics. The all-cash transaction is valued at $19 per share, or about $660 million in total. The Osiris portfolio includes skin substitutes Grafix and Stravix, which drove revenue growth for the company and contributed 70% of revenue in the first nine months of 2018. (Osiris has not yet announced full-year 2018 revenues.) They  also offer the BIO⁴ bone matrix for bone repair and Cartiform, an allograft for articular cartilage repair, both of which are currently exclusively distributed by third parties.

Smith & Nephew has also agreed to acquire the Brainlab orthopedic joint reconstruction business to “further its multi-asset digital surgery and robotic ecosystem.” The acquisition and strategic collaboration allow the companies to enhance their R&D efforts in digital surgery and augmented reality. Under the collaboration agreement, the companies will develop applications in orthopedic reconstruction and sports medicine, with opportunities to expand into other surgical specialties thereafter. Financial terms were not disclosed.