Smith & Nephew to Acquire Ceterix Orthopaedics for $105 Million to Expand Meniscus Repair Portfolio

On December 29, 2018, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that Smith & Nephew (NYSE ticker symbol: SNN), a manufacturer of orthopedic and sports medicine products, announced its agreement to acquire Ceterix Orthopaedics and its NovoStitch Pro knee repair device.

The deal requires the UK orthopedic and trauma care giant to provide $50 million in upfront cash, with an additional $55 million in financing over the next five years, tied to financial performance.

Previously, Smith & Nephew had a total of 17 acquisition records. The most recent one was in December 2017, when the company acquired Rotation Medical, a firm dedicated to researching treatments for rotator cuff diseases, for $210 million.

NovoStitch Pro, developed by Fremont, California-based Ceterix, is specifically designed for repairing complex meniscal tears in the knee. Smith & Nephew stated that the device is “highly complementary” to its own Fast-Fix 360 system and can be used for vertical meniscal tears.

“NovoStitch Pro is an outstanding technology that addresses unmet clinical needs,” said Brad Cannon, Chair of Sports Medicine and Otolaryngology, in his prepared remarks. “We are excited about the opportunity to offer this new solution to our customers. No other company is better positioned to support the transformation of clinical practice, setting the standard for the paradigm shift in meniscal treatment from resection to repair.”

John McCutcheon, CEO of Ceterix, added, “We are proud of the impact our technology has made in developing the meniscal repair market, and we are excited to reach more customers and their patients as part of Smith & Nephew’s broad sports medicine portfolio.”

“The NovoStitch Pro Meniscus Repair System is the most technologically advanced knee arthroscopic repair system,” said Dr. Peter Kurzweil of the Memorial Orthopaedic Surgical Group in Long Beach, California. “Under the surgeon’s control and visualization, NovoStitch has demonstrated significant potential in repairing certain types of tears that were previously considered difficult or impossible to repair.”

Smith & Nephew is an industry-leading company dedicated to the research, development, and manufacturing of products for orthopedic reconstruction and trauma, endoscopy, and advanced wound management. The company’s portfolio comprises more than 1,000 product lines. It ranks second globally in advanced wound management and is the third-largest organization in trauma and clinical care.

Ceterix was founded in October 2010. The company was established by Dr. Justin Saliman, an orthopedic surgeon dedicated to sports medicine research. Dr. Saliman envisioned improving the outcomes of arthroscopic surgery by enabling surgeons to place suture patterns that are currently only achievable through open surgical procedures.

Ceterix Orthopedics is dedicated to providing patients with every opportunity to maintain the natural health and stability of their knees. The NovoStitch Pro Meniscus Repair System is the company’s flagship product. Headquartered in Fremont, California, USA, the company is backed by investors Novo Ventures, Versant Ventures, and 5AM Ventures.