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
December 18, 2018
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 expands opportunity in meniscal repair through
acquisition of unique and highly complementary
technology
18 December 2018
Smith & Nephew plc (LSE:SN, NYSE:SNN), the global medical
technology business, today announces that it has agreed to
acquire Ceterix® Orthopaedics,
Inc, the developer of the NovoStitch® Pro
Meniscal Repair System.
This unique device addresses complex meniscal tear patterns not
adequately served by other repair systems. It is highly
complementary to Smith & Nephew's leading
FAST-FIX◊ 360
Meniscal Repair System, which addresses vertical tears, the most
commonly repairable meniscal injury today.
Currently more than 1.2 million1 meniscal
tears are treated surgically in the US each year. In only
15-20%1 of
the cases is the meniscus repaired, rather than removed. With
products like NovoStitch Pro and FAST-FIX 360 we see the
opportunity to double this proportion in the medium
term.
Smith & Nephew will pay an initial cash consideration of $50
million and up to a further $55 million over the next five years,
contingent on financial performance.
"NovoStitch Pro is an outstanding technology that addresses an
unmet clinical need," said Brad Cannon, President Sports Medicine
and ENT, Smith & Nephew. "We are excited by the
opportunities to take this new option to our customers. No other
company is better positioned to support changing clinical practice
as the standard for meniscal treatment pivots from resection to
repair."
The NovoStitch Pro allows surgeons to repair arthroscopically a
broader range of meniscal tear types, including horizontal, radial,
complex, bucket handle and root tears, as well as vertical
tears.
"The new NovoStitch Pro Meniscal Repair System is one of the most
innovative technologies developed for arthroscopic knee repair,"
said Dr. Peter Kurzweil, president of Memorial Orthopaedic Surgical
Group in Long Beach, California. "NovoStitch offers the potential
to repair tear types that were previously considered difficult or
impossible to sew, with good control and access for the
surgeon."
The NovoStitch Pro will be sold through Smith & Nephew's
extensive sports medicine sales force as well as Ceterix's existing
dedicated sales force. NovoStitch Pro has 510(k) clearance for sale
in the US.
"We are proud of the impact our technology has made in developing
the meniscal repair market 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," said
John McCutcheon, Chief Executive Officer of Ceterix.
The transaction is expected to close in early 2019, subject to the
satisfaction of customary conditions. The acquisition will be
financed from existing cash and debt facilities.
Investors
Andrew Swift
+44 (0) 20 7960 2285
Smith & Nephew
Media
Charles Reynolds
+44
(0) 1923 477314
Smith & Nephew
Ben Atwell/ Andrew Ward
+44 (0) 20 3727 1000
FTI Strategic Consulting
About Smith & Nephew
Smith & Nephew is a global medical technology business
dedicated to supporting healthcare professionals in their daily
efforts to improve the lives of their patients. With leadership
positions in Orthopaedic
Reconstruction, Advanced Wound
Management, Sports
Medicine and Trauma &
Extremities, Smith & Nephew
has more than 15,000 employees and a presence in more
than 100 countries. Annual
sales in 2017 were almost $4.8 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.
References
1. 2018 SmartTRAK US Meniscal Repair Fixation market
report
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: December
18, 2018
By: /s/
Susan Swabey
-----------------
Susan
Swabey
Company
Secretary