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Smith & Nephew to acquire Osiris Therapeutics Inc for $660 million
Smith & Nephew plc announced its agreement to acquire Osiris Therapeutics Inc. for $19 per share in cash. According to a company press release, the transaction represents approximately $660 million in total equity value.
Osiris Therapeutics is a growing company that delivers regenerative medicine products that include skin and bone grafts, as well as articular cartilage substitutes.
“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,” Namal Nawana, CEO of Smith & Nephew, said in the release. “We sought out a fast-growing portfolio with strong clinical evidence addressing critical needs in the marketplace."
Grafix and Stravix, principal products from Osiris, accounted for more than 70% of the $102 million revenue in the first 9 months of 2018, resulting in an 18.7% growth from 2017. According to the Smith & Nephew release, these two products are expected to continue delivering double-digit growth into the medium term. Osiris is expected to publish its fourth-quarter and full-year 2018 results on March 15, 2019.
Grafix is a cryopreserved placental membrane intended for application directly to acute and chronic wounds, including wounds with exposed bone and tendon. Stravix is a cryopreserved placental tissue used as a surgical cover or wrap to support soft tissue repair in a wide range of surgical procedures.
“I am immensely proud of the business we have built from our research into advanced regenerative technologies,” Peter Friedli, chair and co-founder of Osiris, said in the release. “Smith & Nephew is the best new owner to take these products forward, widening access to more customers and restoring quality of life for more patients.”
The companies expect to close the transaction in the second quarter of 2019, subject to customary closing conditions, according to the release. This includes relevant antitrust clearances and the tender of most of the outstanding shares of Osiris common stock on a fully diluted basis.
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