Dynamic Healthcare M&A Database

Acquiring Party	Smith & Nephew plc (NYSE: SNN) Advanced Wound Management business, a global wound care and medical technology business.
Transferring Party	BlueSky Medical Group, Inc, a developer of negative pressure wound therapy products.
Sector	Medical Devices
Date	May 11, 2007
Analysis Negative pressure wound therapy ("NPWT") is the fastest growing segment of the woundcare market, estimated at $1.2b in '06. The market was pioneered by Kinetic Concepts, Inc., against whom BlueSky won a patent infringement defense. NPWT treats chronic wounds such as diabetic ulcers, pressure sores, and post-operative and hard-to-heal wounds by applying sub-atmospheric pressure to an open wound. Deal value -- $15m, plus up to $95m for meeting revenue and other targets. BlueSky had revenues of approximately $11m from its distributors in 2006 (equivalent to $55m in sales to end users).
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Dynamic Healthcare M&A Database - 2Q07