Smith & Nephew acquires Rotation Medical, tissue regeneration technology

Smith & Nephew plc announced it has entered into a definitive agreement to acquire Rotation Medical Inc. for an initial cash consideration of $125 million and up to $85 million during the next 5 years, contingent on financial performance.

According to a company press release, Rotation Medical is a developer of a novel tissue regeneration technology for shoulder rotator cuff repair which can be used by itself for partial tears or in conjunction with Smith & Nephew’s conventional portfolio of anchors and suturing technologies to supplement repairs of more complex tears. The system balances biomechanics and biology to help tendons heal by inducing growth of new tendon-like tissue, offering the potential to prevent tear progression and reduce the incidence of re-tears. Reproducible procedures are enabled by a set of disposable arthroscopic instruments.

“The Rotation Medical bioinductive implant addresses a well-recognized unmet need in the treatment of rotator cuff disease by treating the biology of the tendon. Since first commercialization in 2014, thousands of patients have benefited from the Rotation Medical technology,” Martha Shadan, chief medical editor of Rotation Medical, said in the release. “We are proud of the impact our technology has made in health care 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.”

Subject to the satisfaction of customary conditions, the release noted the transaction is expected to close in late 2017 and to be earnings neutral in 2018 and accretive in 2019. The acquisition will be financed from existing cash and debt facilities, according to the release.

Reference:

http://otp.investis.com/clients/uk/smith_nephew_plc/rns/regulatory-story.aspx?cid=662&newsid=943270