Smith and Nephew acquires bone graft company

Smith and Nephew’s endoscopy division has acquired OsteoBiologics, Inc (OBI) for a net consideration of $72.3 million (39.1 million pounds).

The company expects its acquisition to reduce second half earnings by $7 million. However, Smith and Nephew can add OBI’s global sales, which amounted to $3.3 million in 2005.

OBI sells bioabsorbable bone graft substitutes (BGS) in Europe for cartilage defects of the knee, while it also produces TruFit BGS plugs in the US. Smith and Nephew describes the acquisition as an “exciting addition” to its existing arthroscopy portfolio.

The company’s leading product is TruFit CB, a product sold in Europe that allows a one-step arthroscopic procedure for repairing damage to bone and articular tissues.

Smith and Nephew estimates that under 20 per cent of cartilage defects of the knee go untreated because of the limited scope of some products.

Mike Frazzette, president of Smith and Nephew Endoscopy, stated: “[OBI’s] proprietary technology will allow us to provide even more choices to surgeons when it comes to treating injuries within the joint.”

Joe Darling, vice-president of marketing at Smith and Nephew, stated: “Efficacious repair of articular cartilage defects represents a significant unmet need of sports medicine surgeons.”

“The availability of OBI’s simple-to-use TruFit CB will allow these defects to be treated before they lead to additional damage within the joint,” he added.

Smith and Nephew has several sites throughout the UK, including its wound management factory in Hull and its endoscopy division in Huntingdon, Cambridgeshire.

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