TIDMSN.
RNS Number : 8802K
Smith & Nephew Plc
18 December 2018
Smith & Nephew expands opportunity in meniscal repair
through acquisition of unique and highly complementary
technology
18 December 2018
Smith & Nephew plc (LSE:SN, NYSE:SNN), the global medical
technology business, today announces that it has agreed to acquire
Ceterix(R) Orthopaedics, Inc, the developer of the NovoStitch(R)
Pro Meniscal Repair System.
This unique device addresses complex meniscal tear patterns not
adequately served by other repair systems. It is highly
complementary to Smith & Nephew's leading FAST-FIX 360 Meniscal
Repair System, which addresses vertical tears, the most commonly
repairable meniscal injury today.
Currently more than 1.2 million(1) meniscal tears are treated
surgically in the US each year. In only 15-20%(1) of the cases is
the meniscus repaired, rather than removed. With products like
NovoStitch Pro and FAST-FIX 360 we see the opportunity to double
this proportion in the medium term.
Smith & Nephew will pay an initial cash consideration of $50
million and up to a further $55 million over the next five years,
contingent on financial performance.
"NovoStitch Pro is an outstanding technology that addresses an
unmet clinical need," said Brad Cannon, President Sports Medicine
and ENT, Smith & Nephew. "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 Pro allows surgeons to repair arthroscopically a
broader range of meniscal tear types, including horizontal, radial,
complex, bucket handle and root tears, as well as vertical
tears.
"The new NovoStitch Pro Meniscal Repair System is one of the
most innovative technologies developed for arthroscopic knee
repair," said Dr. Peter Kurzweil, president of Memorial Orthopaedic
Surgical Group in Long Beach, California. "NovoStitch offers the
potential to repair tear types that were previously considered
difficult or impossible to sew, with good control and access for
the surgeon."
The NovoStitch Pro will be sold through Smith & Nephew's
extensive sports medicine sales force as well as Ceterix's existing
dedicated sales force. NovoStitch Pro has 510(k) clearance for sale
in the US.
"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," said John McCutcheon, Chief Executive Officer of
Ceterix.
The transaction is expected to close in early 2019, subject to
the satisfaction of customary conditions. The acquisition will be
financed from existing cash and debt facilities.
Investors
Andrew Swift +44 (0) 20 7960 2285
Smith & Nephew
Media
Charles Reynolds +44 (0) 1923 477314
Smith & Nephew
Ben Atwell/ Andrew Ward +44 (0) 20 3727 1000
FTI Strategic Consulting
About Smith & Nephew
Smith & Nephew is a global medical technology business
dedicated to supporting healthcare professionals in their daily
efforts to improve the lives of their patients. With leadership
positions in Orthopaedic Reconstruction, Advanced Wound Management,
Sports Medicine and Trauma & Extremities, Smith & Nephew
has more than 15,000 employees and a presence in more than 100
countries. Annual sales in 2017 were almost $4.8 billion. Smith
& Nephew is a member of the FTSE 100 (LSE:SN, NYSE:SNN).
For more information about Smith & Nephew, please visit our
website www.smith-nephew.com, follow @SmithNephewplc on Twitter or
visit SmithNephewplc on Facebook.com.
References
1. 2018 SmartTRAK US Meniscal Repair Fixation market report
Forward-looking Statements
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END
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