Medical equipment group Smith & Nephew (LON:SN.) has completed the acquisition of Rotation Medical Inc., a US-based developer of tissue-regeneration technology to treat rotator-cuff disease.
Smith & Nephew is to pay US$125mln for Rotation plus up to a further US$85mln over the next five years, contingent on financial performance.
The company said Rotation’s rotator cuff system is “highly complementary” to its existing portfolio of shoulder repair technologies to supplement repairs of more complex tears.
The procedure involves using a bioinductive implant that helps tendons heal by inducing growth of new tendon-like tissue, enhancing the body’s natural healing response.
It helps prevent tear progression and reduce the incidence of re-tears.
Smith&Nephew said there are more than 650,000 rotator cuff procedures per year in the US growing at a rate of 5-6% per annum. The cuff system will be sold through Smith & Nephew's larger sports medicine sales force and the integrated Rotation Medical sales team.