Smith & Nephew confirmed that it has entered into a definitive agreement to acquire Rotation Medical for an initial cash amount of $125m and up to an additional $85m over the next five years, dependant on performance.
Chief Executive Officer Olivier Bohuon said:
"Rotation Medical furthers our strategy to invest in disruptive technologies that accelerate the transformation of Smith & Nephew to higher growth."
"The Rotation Medical Rotator Cuff System is an innovative technology serving unmet clinical needs. It is highly complementary to our Sports Medicine portfolio and provides a compelling new treatment option for our customers."
The Company said the system incorporates a breakthrough technology and technique that balances biomechanics and biology to enhance the body's natural healing response.
Other background from the Company:
The bioinductive implant helps tendons heal by inducing growth of new tendon-like tissue, offering the potential to prevent tear progression and reduce the incidence of re-tears. The system also includes a set of disposable arthroscopic instruments that enable reproducible procedures.
The bioinductive implant can be used along the rotator cuff tear treatment continuum - by itself for partial tears or in conjunction with its conventional portfolio of anchors and suturing technologies to supplement repairs of more complex tears. It is deployed arthroscopically.
At 2:13pm: (LON:SN.) Smith Nephew PLC share price was -8.5p at 1419.5p