Smith & Nephew to Buy Osiris Therapeutics


Smith & Nephew plc (LSE:SN, NYSE:SNN), a $4.9b maker of orthopedic, wound management, sports medicine and trauma & extremities products, is acquiring Osiris Therapeutics, Inc., a provider of regenerative medicine products, including skin, bone graft and articular cartilage substitutes. The deal accelerates S&N's wound management business. Osiris' products include Grafix and Stravix for treating chronic wounds of diabetic foot ulcers, venous leg ulcers and pressure ulcers. Skin substitute Grafix is a cryopreserved placental membrane intended for application directly to acute and chronic wounds, including wounds with exposed bone and tendon. Stravix is a cryopreserved placental tissue used as a surgical cover or wrap to support soft tissue repair in a wide range of surgical procedures. These two principal products accounted for more than 70% of revenue and drove the majority of growth. Osiris also offers BIO4 bone matrix for bone repair and Cartiform, an allograft for articular cartilage repair. Its products are exclusively distributed by third parties. Deal value - $660m on sales of $142.8m (4.6x) and EBITDA of $10.8m (61.0x).



Keywords: Healthcare Investment Banking, Healthcare M&A, Healthcare mergers