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Smith & Nephew completes acquisition of tissue regeneration developer Rotation Medical Inc.

6 December 2017

Rotation Medical implant in place

Smith & Nephew (LSE:SN, NYSE:SNN), the global medical technology business, announces it has completed the acquisition of Rotation Medical Inc., the developer of a novel tissue regeneration technology for shoulder rotator cuff repair, supporting the Company’s strategy to invest in innovative technologies that meet unmet clinical needs.

The acquisition cost is $125 million and up to a further $85 million over the next five years, contingent on financial performance.

The Rotation Medical Rotator Cuff System incorporates a breakthrough technology and technique that balances biomechanics and biology to enhance the body’s natural healing response. 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. There are more than 650,000 rotator cuff procedures taking place annually in the US growing at a rate of 5-6% per annum1.

The system is highly complementary to Smith & Nephew’s existing portfolio of shoulder repair technologies to supplement repairs of more complex tears. It will be sold through Smith & Nephew’s larger sports medicine sales force and the integrated Rotation Medical sales team. It has 510(k) clearance for sale in the US and a filing is being prepared for approval in the EU.

References

  1. Millennium Research Group, Inc. Published in: Sports Medicine Devices, US, 2016

Enquiries

Investors

Ingeborg Øie
Smith & Nephew

 

+44(0)20 7960 2285

Media

Charles Reynolds
Smith & Nephew

 

+44(0)1923 477314

Ben Atwell / Simon Conway
FTI Strategic Consulting

+44(0)20 3727 1000

About Smith & Nephew

Smith & Nephew is a global medical technology business dedicated to helping healthcare professionals improve people's lives. With leadership positions in Orthopaedic ReconstructionAdvanced Wound ManagementSports Medicine and Trauma & Extremities, Smith & Nephew has around 15,000 employees and a presence in more than 100 countries. Annual sales in 2016 were almost $4.7 billion. Smith & Nephew is a member of the FTSE100 (LSE:SN, NYSE:SNN).

For more information about Smith & Nephew, please visit our website www.smith-nephew.comfollow @SmithNephewplc on Twitter or visit SmithNephewplc on Facebook.com.

Forward-looking Statements

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Smith & Nephew plc announces that it has entered into a definitive agreement to acquire Rotation Medical Inc., a developer of a novel tissue regeneration technology for shoulder rotator cuff repair.