Smith+Nephew wraps up $330m acquisition of CartiHeal to expand sports medicine reach

Smith+Nephew, a global leader in medical technology, has officially completed the acquisition of CartiHeal, the developer of Agili-C, a novel sports medicine technology designed for knee cartilage regeneration. This acquisition, valued at up to $330 million, includes an initial cash consideration of $180 million with an additional $150 million contingent on future financial performance.

Background of the Deal

Announced in November 2023, the acquisition of CartiHeal is a strategic move by Smith+Nephew to strengthen its position in the sports medicine sector. The Agili-C technology is a significant advancement in the treatment of osteochondral lesions, offering a one-step therapy with a broader indication than existing treatments.

Transformative Potential of Agili-C

Agili-C is poised to revolutionize the treatment of cartilage issues in the knee. It is an off-the-shelf treatment suitable for a wide patient population, including those with lesions in knees with mild to moderate osteoarthritis—a condition that had previously lacked effective treatment options. Additionally, Agili-C addresses the needs of approximately 700,000 patients in the US who undergo cartilage repair annually.

Smith+Nephew’s Vision for Agili-C

Scott Schaffner, President of Sports Medicine at Smith+Nephew, expressed high confidence in the acquisition, stating, “With its proven superiority to current standard of care, Agili-C has the potential to transform cartilage repair outcomes.” He emphasized the company’s expertise in regenerative therapy and leadership in knee repair as key factors in ensuring the success and value creation of this new addition.

Anticipated Impact on Sports Medicine

This acquisition is expected to significantly enhance Smith+Nephew’s offerings in the sports medicine domain. With the integration of Agili-C into its portfolio, Smith+Nephew is set to provide groundbreaking solutions in osteochondral lesion treatment, potentially improving the lives of millions suffering from knee cartilage issues.

In summary, Smith+Nephew’s acquisition of CartiHeal and the Agili-C technology marks a pivotal moment in sports medicine, offering innovative solutions for knee cartilage repair and regeneration. This strategic move signifies the company’s ongoing commitment to advancing medical technology and improving patient care.