Smith & Nephew PLC (LSE:SN) said today that it has closed the acquisition of CartiHeal, an Israel-based developer of sports medicine technology for cartilage regeneration in the knee.
The medical technology company paid US$180 million to complete the deal, with up to a further US$150 million payment contingent on future financial performance.
CartiHeal has developed a one-step treatment for osteochondral lesions to bone and cartilage, Agili-C, which the company said has a broader indication than existing treatments.
The treatment is expected to be able to treat a wide patient population, including those with lesions in knees with mild to moderate osteoarthritis, a condition that has been previously unaddressed.
A target market for the treatment will be the approximately 700,000 patients who receive cartilage repair annually in the US.
"With its proven superiority to current standard of care, Agili-C has the potential to transform cartilage repair outcomes," said Scott Schaffner, president of Sports Medicine at 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."