Smith & Nephew to acquire CartiHeal for $180 million initial cash consideration
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Key takeaways:
- Smith & Nephew announced it has entered into a definitive agreement to acquire CartiHeal.
- Smith & Nephew will pay an initial $180 million in cash consideration.
Smith & Nephew announced it has entered into a definitive agreement to acquire CartiHeal for an initial cash consideration of $180 million, according to a company press release.
The release noted Smith & Nephew will also pay up to a further $150 million contingent on financial performance. CartiHeal is the developer of Agili-C, a novel off-the-shelf sports medicine technology for osteochondral lesions related to knee cartilage regeneration.
“The acquisition of this disruptive technology supports our strategy to invest behind our successful sports medicine business,” Deepak Nath, CEO of Smith & Nephew, said in the release. “Agili-C’s superior clinical performance makes it highly complementary to our existing knee repair portfolio and with our proven commercial expertise in high-growth biologics, we are confident that we will drive further success with this compelling treatment option.”
Founded in 2009 as a university spin-out, the release noted CartiHeal retains a small facility close to Tel Aviv and a sales office in New Jersey. The release added CartiHeal has large quantities of raw material in the U.S. and, by close of the transaction, will also have ample U.S. stock to support full commercial launch.
“As a leader in sports medicine and with a deep knowledge of biologics, Smith & Nephew is the ideal new home for Agili-C,” Nir Altschuler, founder and CEO of CartiHeal, said in the release. “We are excited at the prospect of our technology helping many more patients overcome knee pain.”
The transaction has an anticipated closing in the first quarter of 2024, according to the release.
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