Smith & Nephew completes deal to buy Ceterix Orthopaedics for up to US$105mln

Medical device maker Smith & Nephew PLC (LON:SN) has completed the acquisition meniscus tear repair firm Ceterix Orthopaedics for up to US$105mln.

Ceterix is the developer of the NovoStitch Pro device that assists surgeons in repairing meniscus tears, a common cartilage injury of the knee.

Smith & Nephew said the deal is “highly complementary” to its own FAST-FIX 360 meniscal repair system. It has agreed to pay an initial US$50mln and up to a further US455mln over the next few years depending on the financial performance of the business.

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In the US, about 1.2 million meniscal tears are surgically operated on each year with just 15-20% being repaired rather than removed.  

Smith & Nephew said it see an opportunity to double this proportion in the medium term through the combination of FAST-FIX 360 and NovoStitch Pro.

“NovoStitch Pro is an outstanding technology that addresses an unmet clinical need,” said Brad Cannon, president of sports medicine and ears, nose and throat products at Smith & Nephew.

“We are delighted to add this device to our Sports Medicine portfolio and are looking forward to the opportunities that come with it.”

Shares fell 2.3% to 1,437p in afternoon trading. 

Story by ProactiveInvestors