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Smith+Nephew (SNN) entered into a definitive agreement to acquire CartiHeal, developer of Agili-C, a novel sports medicine technology for cartilage regeneration in the knee.
SNN will pay an initial cash consideration of $180 million at closing, and up to a further $150 million contingent on financial performance. The transaction is expected to close in 1Q24.
CartiHeal was founded in 2009 as a university spin-out. It retains a small facility close to Tel Aviv and a sales office in New Jersey, United States. CartiHeal has large quantities of raw material in the U.S. and, by close of the transaction, will also have ample U.S. stock to support full commercial launch. All CartiHeal employees are expected to transfer to Smith+Nephew.
Agili-C is an off-the-shelf one-step treatment for osteochondral lesions with a broader indication than existing treatments. It is indicated to treat a wide patient population, including those with lesions in knees with mild to moderate osteoarthritis.
Agili-C is a porous, biocompatible and resorbable scaffold that promotes natural regeneration of articular cartilage and restoration of its underlying subchondral bone. FDA granted Agili-C a Breakthrough Device designation status in 2020 and Premarket Approval in 2022. CartiHeal was initially acquired by Bioventus in 2022. Bioventus was unable to finance the deal, releasing CartiHeal and Agili-C to be picked up by another company.
“The acquisition of this disruptive technology supports our strategy to invest behind our successful Sports Medicine business,” said Deepak Nath, SNN Chief Executive Officer. “Agili-C’s superior clinical performance makes it highly complementary to our existing knee repair portfolio and with our proven commercial expertise in high-growth biologics, we are confident that we will drive further success with this compelling treatment option.”
“As a leader in sports medicine and with a deep knowledge of biologics, Smith+Nephew is the ideal new home for Agili-C,” said Nir Altschuler, Chief Executive Officer and Founder of CartiHeal. “We are excited at the prospect of our technology helping many more patients overcome knee pain.”
“We have shown with REGENETEN◊ that we have the market development and commercialization expertise to take novel technologies and successfully establish a new standard of care,” said Scott Schaffner, President Sports Medicine, Smith+Nephew. “Agili-C is the perfect addition to our portfolio and we look forward to leveraging our expertise to transform cartilage repair outcomes for patients.”
Source: Smith+Nephew
Smith+Nephew (SNN) entered into a definitive agreement to acquire CartiHeal, developer of Agili-C, a novel sports medicine technology for cartilage regeneration in the knee.
SNN will pay an initial cash consideration of $180 million at closing, and up to a further $150 million contingent on financial performance. The transaction is expected to...
Smith+Nephew (SNN) entered into a definitive agreement to acquire CartiHeal, developer of Agili-C, a novel sports medicine technology for cartilage regeneration in the knee.
SNN will pay an initial cash consideration of $180 million at closing, and up to a further $150 million contingent on financial performance. The transaction is expected to close in 1Q24.
CartiHeal was founded in 2009 as a university spin-out. It retains a small facility close to Tel Aviv and a sales office in New Jersey, United States. CartiHeal has large quantities of raw material in the U.S. and, by close of the transaction, will also have ample U.S. stock to support full commercial launch. All CartiHeal employees are expected to transfer to Smith+Nephew.
Agili-C is an off-the-shelf one-step treatment for osteochondral lesions with a broader indication than existing treatments. It is indicated to treat a wide patient population, including those with lesions in knees with mild to moderate osteoarthritis.
Agili-C is a porous, biocompatible and resorbable scaffold that promotes natural regeneration of articular cartilage and restoration of its underlying subchondral bone. FDA granted Agili-C a Breakthrough Device designation status in 2020 and Premarket Approval in 2022. CartiHeal was initially acquired by Bioventus in 2022. Bioventus was unable to finance the deal, releasing CartiHeal and Agili-C to be picked up by another company.
“The acquisition of this disruptive technology supports our strategy to invest behind our successful Sports Medicine business,” said Deepak Nath, SNN Chief Executive Officer. “Agili-C’s superior clinical performance makes it highly complementary to our existing knee repair portfolio and with our proven commercial expertise in high-growth biologics, we are confident that we will drive further success with this compelling treatment option.”
“As a leader in sports medicine and with a deep knowledge of biologics, Smith+Nephew is the ideal new home for Agili-C,” said Nir Altschuler, Chief Executive Officer and Founder of CartiHeal. “We are excited at the prospect of our technology helping many more patients overcome knee pain.”
“We have shown with REGENETEN◊ that we have the market development and commercialization expertise to take novel technologies and successfully establish a new standard of care,” said Scott Schaffner, President Sports Medicine, Smith+Nephew. “Agili-C is the perfect addition to our portfolio and we look forward to leveraging our expertise to transform cartilage repair outcomes for patients.”
Source: Smith+Nephew
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
