REG - Smith & Nephew Plc - Acquisition

Smith & NephewAnnouncement

10/01/2024 07:00

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RNS Number : 1376Z  Smith & Nephew Plc  10 January 2024

 

Smith+Nephew completes acquisition of novel cartilage regeneration technology
for sports medicine knee repair

10 January 2024

 

Smith+Nephew (LSE:SN, NYSE:SNN), the global medical technology company,
announces that it has completed the acquisition of CartiHeal, developer of

Agili-C, a novel sports medicine technology for cartilage regeneration in the
knee.

Agili-C is an off-the-shelf one-step treatment for osteochondral (bone and
cartilage) lesions with a broader indication than existing treatments. It is
indicated to treat a wide patient population, including those with lesions in
knees with mild to moderate osteoarthritis, a previously unaddressed
condition, as well as the approximately 700,000 patients(1) that receive
cartilage repair annually in the US.

 "With its proven superiority(2) to current standard of care, Agili-C has the
potential to transform cartilage repair outcomes," said Scott Schaffner,
President Sports Medicine, Smith+Nephew. "Our expertise in regenerative
therapy and leadership in knee repair gives me great confidence that this will
be a significant value creator for Smith+Nephew."

Smith+Nephew paid $180 million on completion, with up to a further $150
million contingent on future financial performance, as previously disclosed.

 

Enquiries

 

 Investors / Analysts

 Andrew Swift                      +44 (0) 1923 477433

Smith+Nephew

 Media

 Charles Reynolds                  +44 (0) 1923 477314

Smith+Nephew

 Susan Gilchrist / Ayesha Bharmal  +44 (0) 20 7404 5959

Brunswick

 

References

1.   Medtech 360, Sports Medicine Devices, Market Analysis, US, 2018,
Millennium Research Group, Inc.

2.   The U.S. Food and Drug Administration (FDA) granted Agili-C
Breakthrough Device designation status in 2020 and Premarket Approval (PMA) in
March 2022. PMA approval was granted based on the results of a two-year
randomised controlled trial (N=251) that confirmed superiority of Agili-C over
current standard of care - microfracture and debridement for the treatment of
knee joint surface lesions, chondral and osteochondral defects. Study
inclusion criteria included patients with mild and moderate osteoarthritis.

 

 

About Smith+Nephew

 

Smith+Nephew is a portfolio medical technology business that exists to restore
people's bodies and their self-belief by using technology to take the limits
off living. We call this purpose 'Life Unlimited'. Our 19,000 employees
deliver this mission every day, making a difference to patients' lives through
the excellence of our product portfolio, and the invention and application of
new technologies across our three global business units of Orthopaedics,
Advanced Wound Management and Sports Medicine & ENT.

 

Founded in Hull, UK, in 1856, we now operate in more than 100 countries, and
generated annual sales of $5.2 billion in 2022. Smith+Nephew is a constituent
of the FTSE100 (LSE:SN, NYSE:SNN). The terms 'Group' and 'Smith+Nephew' are
used to refer to Smith & Nephew plc and its consolidated subsidiaries,
unless the context requires otherwise.

 

For more information about Smith+Nephew, please visit www.smith-nephew.com
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Forward-looking Statements

This document may contain forward-looking statements that may or may not prove
accurate. For example, statements regarding expected revenue growth and
trading profit margins, market trends and our product pipeline are
forward-looking statements. Phrases such as "aim", "plan", "intend",
"anticipate", "well-placed", "believe", "estimate", "expect", "target",
"consider" and similar expressions are generally intended to identify
forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other important factors that could cause
actual results to differ materially from what is expressed or implied by the
statements. For Smith+Nephew, these factors include: risks related to the
impact of Covid, such as the depth and longevity of its impact, government
actions and other restrictive measures taken in response, material delays and
cancellations of elective procedures, reduced procedure capacity at medical
facilities, restricted access for sales representatives to medical facilities,
or our ability to execute business continuity plans as a result of Covid;
economic and financial conditions in the markets we serve, especially those
affecting healthcare providers, payers and customers (including, without
limitation, as a result of Covid); price levels for established and innovative
medical devices; developments in medical technology; regulatory approvals,
reimbursement decisions or other government actions; product defects or
recalls or other problems with quality management systems or failure to comply
with related regulations; litigation relating to patent or other claims; legal
and financial compliance risks and related investigative, remedial or
enforcement actions; disruption to our supply chain or operations or those of
our suppliers (including, without limitation, as a result of Covid);
competition for qualified personnel; strategic actions, including acquisitions
and disposals, our success in performing due diligence, valuing and
integrating acquired businesses; disruption that may result from transactions
or other changes we make in our business plans or organisation to adapt to
market developments; relationships with healthcare professionals; reliance on
information technology and cybersecurity; disruptions due to natural
disasters, weather and climate change related events; changes in customer and
other stakeholder sustainability expectations; changes in taxation
regulations; effects of foreign exchange volatility; and numerous other
matters that affect us or our markets, including those of a political,
economic, business, competitive or reputational nature. Please refer to the
documents that Smith+Nephew has filed with the U.S. Securities and Exchange
Commission under the U.S. Securities Exchange Act of 1934, as amended,
including Smith+Nephew's most recent annual report on Form 20-F, which is
available on the SEC's website at www. sec.gov, for a discussion of certain of
these factors. Any forward-looking statement is based on information available
to Smith+Nephew as of the date of the statement. All written or oral
forward-looking statements attributable to Smith+Nephew are qualified by this
caution. Smith+Nephew does not undertake any obligation to update or revise
any forward-looking statement to reflect any change in circumstances or in
Smith+Nephew's expectations.

 

(◊) Trademark of Smith+Nephew. Certain marks registered in US Patent and
Trademark Office.

 

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