Smith & Nephew PLC (LSE:SN) has announced the acquisition of knee cartilage regeneration technology developer CartiHeal.
Under the agreement, the FTSE 100-listed medical equipment manufacturer will pay US$180 million for CartiHeal and up to a further US$170 million based on financial performance.
“The acquisition of this disruptive technology supports our strategy to invest behind our successful sports medicine business,” Smith & Nephew chief executive Deepak Nath said in a statement.
CartiHeal develops Agili-C technology, Smith & Nephew highlighted, which is an off-the-shelf treatment for bone and cartilage lesions.
This was granted breakthrough device designation status by the US Food and Drug Administration (FDA) in 2020 and gained premarket approval in March last year.
“Agili-C's superior clinical performance makes it highly complementary to our existing knee repair portfolio,” Nath added.
“We are confident that we will drive further success with this compelling treatment option.”
Smith & Nephew added the transaction is set to be completed in the first quarter of 2024, with the takeover being funded from its existing cash and debt facilities.