Blueprint
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of
1934
October
23, 2017
Commission
File Number 001-14978
SMITH & NEPHEW
plc
(Registrant's
name)
15 Adam
Street
London, England WC2N 6LA
(Address
of registrant's principal executive offices)
[Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.]
Form
20-F
X
Form 40-F
---
---
[Indicate
by check mark if the registrant is submitting the Form 6-K
in
paper
as permitted by Regulation S-T Rule 101(b)(1).]
Yes
No X
---
---
[Indicate
by check mark if the registrant is submitting the Form 6-K
in
paper
as permitted by Regulation S-T Rule 101(b)(7).]
Yes
No X
---
---
[Indicate
by check mark whether by furnishing the information
contained
in this
Form, the registrant is also thereby furnishing information to
the
Commission
pursuant to Rule 12g3-2 (b) under the Securities Exchange Act
of
1934.]
Yes
No X
---
---
If
"Yes" is marked, indicate below the file number assigned to
the
registrant
in connection with Rule 12g3-2 (b) : 82- n/a.
Smith & Nephew acquires tissue regeneration technology
for
shoulder repair
23 October 2017
Smith
& Nephew plc (LSE:SN, NYSE:SNN), the global medical technology
business, today announces that it has entered into a definitive agreement to acquire
Rotation Medical Inc., a developer of a novel tissue regeneration
technology for shoulder rotator cuff repair, for an initial cash
consideration of $125 million and up to $85 million over the next
five years, contingent on financial
performance.
"Rotation Medical furthers our strategy to invest in disruptive
technologies that accelerate the transformation of Smith &
Nephew to higher growth," said Chief Executive Officer Olivier
Bohuon. "The Rotation Medical Rotator Cuff
System is an innovative
technology serving unmet clinical needs. It is highly complementary
to our Sports Medicine portfolio and provides a compelling new
treatment option for our customers."
The
system incorporates a breakthrough technology and technique that
balances biomechanics and biology to enhance the body's natural
healing response. The bioinductive implant helps tendons heal by
inducing growth of new tendon-like tissue, offering the potential
to prevent tear progression and reduce the incidence of re-tears.
The system also includes a set of disposable arthroscopic
instruments that enable reproducible procedures.
The bioinductive implant can be
used along the rotator cuff tear treatment continuum - by itself
for partial tears or in conjunction with our conventional portfolio
of anchors and suturing technologies to supplement repairs of more
complex tears. It is deployed
arthroscopically.
In clinical studies the bioinductive implant has demonstrated the
ability to improve tendon healing by inducing growth of new
tendon-like issue, resulting in thicker tendons and replacement of
tissue defects1,2,3,
as well as improving clinical scores over time and with a high
percentage (92%) of patients expressing their satisfaction post
treatment3.
"This is the most innovative product that I have seen in sports
surgery in recent years," said Jeffrey Abrams, MD, Princeton
Orthopedic Associates and Sports Medicine. "There have been many
improvements in surgical repair, but despite these, in many
situations, the quality of the attached tendon is less than
optimal. A biological approach to treating rotator cuff disease
remains a major priority for surgeons. The Rotation Medical
bioinductive implant is a game changer in that it improves tendon
quality and thickness. My patient outcomes are impressive. This is
an exciting technology that has the potential to change the way we
treat rotator cuff tears and reverse the natural progression of the
disease."
The Rotation Medical System will be sold through Smith &
Nephew's sports medicine sales force as well as Rotation Medical's
dedicated sales force. It has 510(k) clearance for sale in the US
and a filing is being prepared for approval in the EU. In the US
alone there are 650,000 rotator cuff procedures each year growing
at a rate of 5-6% per annum4.
"The Rotation Medical bioinductive implant addresses a
well-recognized unmet need in the treatment of rotator cuff disease
by treating the biology of the tendon. Since first
commercialization in 2014, thousands of patients have benefited
from the Rotation Medical technology," said Martha Shadan, Chief
Executive Officer of Rotation Medical. "We are proud of the impact
our technology has made in healthcare and are excited by the
opportunity to reach many more customers and their patients as an
integrated part of Smith & Nephew's extensive Sports Medicine
portfolio."
The transaction is expected to close in late 2017, subject to the
satisfaction of customary conditions, and to be earnings neutral in
2018 and accretive in 2019. The acquisition will be financed from
existing cash and debt facilities.
ends
References
1. Preliminary
investigation of a biological augmentation of rotator cuff repairs
using a collagen implant: a 2-year MRI follow-up Bokor, Sonnabend,
Deady, Cass, Young, Van Kampen, Arnoczky published in Muscles,
Ligaments and Tendons Journal [5(3):144-150] 2015
2. Histologic
Evaluation of Biopsy Specimens Obtained After Rotator Cuff Repair
Augmented With a Highly Porous Collagen Implant Arnoczky, D.V.M.,
Shariff K. Bishai, D.O., M.S., F.A.O.A.O., Brian Schofield, M.D.,
Scott Sigman, M.D., Brad D. Bushnell, M.D., M.B.A., Jan Pieter
Hommen, M.D., and Craig Van Kampen, Ph.D. Arthroscopy: The Journal
of Arthroscopic and Related Surgery, [33(2):278-283]
2016
3. Evidence
of healing of partial-thickness rotator cuff tears following
arthroscopic augmentation with a collagen implant: a 2-year MRI
follow-up. Bokor, Sonnabend, Deady, Cass, Young, Van Kampen,
Arnoczky. Muscles, Ligaments and Tendons Journal [6(1):16-25]
2016.
4. Millennium
Research Group, Inc. Published in: Sports Medicine Devices, US,
2016
Enquiries
|
Investors
|
|
|
|
Ingeborg
Øie
Smith
& Nephew
|
+44
(0) 20 7960 2285
|
|
|
Media
|
|
|
|
Charles
Reynolds
Smith
& Nephew
|
+44
(0) 1923 477314
|
|
|
Ben
Atwell/ Simon Conway
FTI
Strategic Consulting
|
+44
(0) 20 3727 1000
|
|
About Smith & Nephew
Smith
& Nephew is a global medical technology business dedicated to
helping healthcare professionals improve people's lives. With
leadership positions in Orthopaedic
Reconstruction, Advanced Wound
Management, Sports Medicine
and Trauma
& Extremities, Smith & Nephew has around 15,000
employees and a presence in more
than 100 countries. Annual sales in 2016 were almost $4.7
billion. Smith & Nephew is a member of the FTSE 100 (LSE:SN,
NYSE:SNN).
For
more information about Smith & Nephew, please visit our website
www.smith-nephew.com, follow @SmithNephewplc
on Twitter or
visit
SmithNephewplc on Facebook.com.
Forward-looking Statements
This document may contain forward-looking statements that may or
may not prove accurate. For example, statements regarding expected
revenue growth and trading margins, market trends and our product
pipeline are forward-looking statements. Phrases such as "aim",
"plan", "intend", "anticipate", "well-placed", "believe",
"estimate", "expect", "target", "consider" and similar expressions
are generally intended to identify forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause actual
results to differ materially from what is expressed or implied by
the statements. For Smith & Nephew, these factors include:
economic and financial conditions in the markets we serve,
especially those affecting health care providers, payers and
customers; price levels for established and innovative medical
devices; developments in medical technology; regulatory approvals,
reimbursement decisions or other government actions; product
defects or recalls or other problems with quality management
systems or failure to comply with related regulations; litigation
relating to patent or other claims; legal compliance risks and
related investigative, remedial or enforcement actions; disruption
to our supply chain or operations or those of our suppliers;
competition for qualified personnel; strategic actions, including
acquisitions and dispositions, our success in performing due
diligence, valuing and integrating acquired businesses; disruption
that may result from transactions or other changes we make in our
business plans or organisation to adapt to market developments; and
numerous other matters that affect us or our markets, including
those of a political, economic, business, competitive or
reputational nature. Please refer to the documents that Smith &
Nephew has filed with the U.S. Securities and Exchange Commission
under the U.S. Securities Exchange Act of 1934, as amended,
including Smith & Nephew's most recent annual report on Form
20-F, for a discussion of certain of these factors. Any
forward-looking statement is based on information available to
Smith & Nephew as of the date of the statement. All written or
oral forward-looking statements attributable to Smith & Nephew
are qualified by this caution. Smith & Nephew does not
undertake any obligation to update or revise any forward-looking
statement to reflect any change in circumstances or in Smith &
Nephew's expectations.
◊ Trademark of
Smith & Nephew. Certain marks registered US Patent and
Trademark Office.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Smith
& Nephew Plc
(Registrant)
Date: October
23, 2017
By: /s/
Susan Swabey
-----------------
Susan
Swabey
Company
Secretary