Smith & Nephew paying around $660mln in cash to acquire US regenerative medicine firm Osiris Therapeutics
Smith & Nephew PLC (LON:SN.) is paying around $660mln in cash to acquire Osiris Therapeutics, Inc. (NASDAQ:OSIR), a fast-growing US company delivering regenerative medicine products, including skin, bone graft and articular cartilage substitutes.
The FTSE 100-listed firm said it is paying US$19.00 per share for the Nasdaq-listed firm, shares in which were trading at US$19.35 each in pre-market New York trading, up 2.5% on Monday’s close.
READ: Smith & Nephew shares weak on reports of talks over possible $3bn US orthopaedics acquisition
The group said the purchase price represents a 37% premium over the 90-day volume weighted average price of Osiris’ shares prior to the announcement.
In early afternoon trading in London, Smith & Nephew shares were 1.3% higher at 1,480.50p.
Namal Nawana, Smith & Nephew’s chief executive officer, commented: “Greater presence in the fast-growing regenerative medicine market enhances our portfolio and will help immediately accelerate our wound management business as well as provide longer-term innovations in additional channels and indications.
“We sought out a fast growing portfolio with strong clinical evidence addressing critical needs in the marketplace.”
The companies expect to close the transaction in the second quarter of 2019, subject to customary closing conditions, with the acquisition to be financed from Smith & Nephew’s existing cash and debt facilities.
Expected to be earnings accretive
The UK firm said the transaction is expected to be accretive to its adjusted earnings per share from 2020 and is expected to generate a return on invested capital that exceeds Smith & Nephew’s cost of capital in the third year after closing.
For the nine months ended 30 September 2018, Osiris reported an 18.7% year-on-year increase in revenue, with third-quarter revenue of $36.5mln, a 22.4% increase year-on-year.
Osiris’ principal products, skin substitutes Grafix and Stravix, accounted for more than 70% of revenue in the first nine months of 2018 and drove the majority of growth.
Smith & Nephew said they expect these two products to continue to deliver strong double-digit growth into the medium term.
Simon Fraser, President, Advanced Wound Management at Smith & Nephew, said: “Grafix offers a compelling new option for managing hard to heal wounds and Stravix expands our tissue repair portfolio. We will drive synergies across products from common call points and increased access to our wider customer base.”
Osiris also offers BIO4 bone matrix for bone repair and Cartiform, an allograft for articular cartilage repair, products currently exclusively distributed by third parties.
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/216300/smith--nephew-paying-around-660mln-in-cash-to-acquire-us-regenerative-medicine-firm-osiris-therapeutics-216300.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).