Smith & Nephew to acquire Osiris TherapeuticsPublished: March 15, 2019
By striking a $660 million deal with regenerative medicine developer Osiris Therapeutics, Smith & Nephew, a global medical technology business aims to expand and accelerate its wound care business.
Under the terms of the transaction, Smith & Nephew will pay $19 in cash for each Osiris share, a total of approximately $660.5 million. This offer represents a 37% premium over a weighted, 90-day average price of the company’s stock. The companies expect to close the transaction in the second quarter of 2019 and Osiris’ 360 employees are expected to join Smith & Nephew on completion. Until then, Osiris will continue to operate as a separate and independent company.
Columbia, Maryland-based Osiris Therapeutics is developing regenerative medicine products including skin, bone graft and cartilage substitutes for the wound care and orthopaedic industry. Its portfolio includes, Grafix product line, Stravix®, BIO4®, and Cartiform®. The company is also developing bioengineered stem cell and tissue based products. Osiris delivered revenue of $102 million for the nine-months ended 30 September 2018, an 18.7% increase over the comparable period in 2017.
Grafix is a skin substitute and is a cryopreserved placental membrane developed for applying directly to acute and chronic wounds, including wounds with exposed bone and tendon. Grafix’s latest derivative, Grafix PL PRIME, was launched last year and is a lyopreserved product that can be stored at room temperature, improving usability for healthcare professionals. Stravix is a cryopreserved placental tissue used as a surgical cover or wrap to support soft tissue repair in a wide range of surgical procedures.
Grafix and Stravix, accounted for more than 70% of revenue in the first nine months of 2018. Smith & Nephew said that it expects these two products to continue to deliver double-digit growth in the next years.
Peter Friedli, co-founder of Osiris commented: “This is a very good outcome for Osiris’ shareholders. I am immensely proud of the business we have built from our research into advanced regenerative technologies. I believe Smith & Nephew is the right home for Osiris and will allow our products to reach more customers, helping to restore quality of life for more patients.”
Source: Osiris Therapeutics, Inc. Enters Agreement to be Acquired by Smith & Nephew plc; Press Release