Smith & Nephew, which has its advanced wound management manufacturing facility in Hull, has acquired US pharmaceutical company Osiris Therapeutics for $660 million.
The NASDAQ-listed Osiris specialises in delivering regenerative medicine products, including skin, bone graft and articular cartilage substitutes.
“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,” said Smith & Nephew CEO Namal Nawana.
“We sought out a fast-growing portfolio with strong clinical evidence addressing critical needs in the marketplace.”
Osiris delivered revenue of $102 million for the nine-months ended 30 September 2018, an 18.7% increase over the comparable period in 2017.
Revenue was $36.5 million for the three-month period ended 30 September 2018, a 22.4% increase year on year. Osiris is expected to publish its Fourth Quarter and Full Year 2018 results on 15 March 2019.
Osiris’ principal products – 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 it expects these two products to continue to deliver strong double-digit growth into the medium term.
Grafix and Stravix participate in the US skin substitute market, which is currently worth $900 million per annum and growing at 7% annually.
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.”