Smith and Nephew and Essex Woodlands to form joint venture

Smith and Nephew has unveiled plans to form a new joint venture with  fellow healthcare company Essex Woodlands.

The new corporate entity will be called Bioventus and will be 51 percent owned by Essex Woodlands and 49 percent by Smith and Nephew.

It is intended to help the companies expand their presence in the biologics and clinical therapies market, marketing products such as the Exogen ultrasound bone healing system and joint fluid therapy, with further new products planned for launch.

Smith and Nephew will receive $98 million (63.45 million pounds) to pay down debt and a $160 million five-year note from Bioventus, with most of its US biologics team and clinical therapies to be transferred to the new joint venture.

Olivier Bohuon, chief executive officer of Smith and Nephew, said: "Essex Woodlands are strong partners and the joint venture will benefit from their significant expertise in developing healthcare businesses."

Earlier this month, the company welcomed news that its chairman Dr John Buchanan has been recognised for his contributions to British industry with a knighthood in the New Year's Honours List.