Smith+Nephew announces $330m acquisition of CartiHeal for innovative cartilage regeneration technology

Smith+Nephew, a global medical technology leader, today announced its definitive agreement to acquire CartiHeal, the developer of Agili-C, a novel sports medicine technology. The acquisition, valued at up to $330 million, includes an initial cash consideration of $180 million and up to $150 million contingent on financial performance.

Innovative Treatment with Agili-C

Agili-C represents a significant advancement in osteochondral lesion treatment, offering a one-step therapy with a broader indication than existing treatments. It caters to a wide patient population, including those with mild to moderate osteoarthritis and the large number of patients receiving cartilage repair annually in the U.S.

Strategic Move in Sports Medicine

Deepak Nath, CEO of Smith+Nephew, emphasized the acquisition’s alignment with the company’s strategy to invest in its successful Sports Medicine business. Agili-C’s clinical performance complements Smith+Nephew’s knee repair portfolio, with the potential to set a new standard in cartilage repair.

Clinical Superiority and FDA Approval

Agili-C is a biocompatible scaffold promoting natural cartilage regeneration. It received Breakthrough Device designation from the FDA in 2020 and Premarket Approval in March 2022. Clinical trials have shown Agili-C’s superiority over current standard care, suggesting its potential as a new standard in cartilage repair.

Leadership Comments

Nir Altschuler, CEO and Founder of CartiHeal, expressed enthusiasm for Agili-C’s future under Smith+Nephew. Scott Schaffner, President of Sports Medicine at Smith+Nephew, highlighted the company’s expertise in market development and commercialization, poised to transform cartilage repair outcomes.

Company Background and Future Plans

Founded in 2009 as a university spin-out, CartiHeal maintains facilities near Tel Aviv and in New Jersey, U.S. The transaction, expected to close in Q1 2024, will be financed from existing cash and debt facilities, with breakeven to trading profit targeted by 2027. All CartiHeal employees are expected to transfer to Smith+Nephew.