After being acquired by Bioventus in April 2022 for $315 million upfront, CartiHeal is now changing hands. Smith+Nephew announced that it has entered into a definitive agreement to acquire CartiHeal, a privately held medical device company with headquarters in Israel.
Under the terms of the agreement, Smith+Nephew will pay an initial cash consideration of $180 million at closing, and up to a further $150 million contingent on financial performance.
CartiHeal develops proprietary implants for the treatment of cartilage and osteochondral defects in traumatic and osteoarthritic joints. The company has developed Agili-C, a novel sports medicine technology for cartilage regeneration in the knee. CartiHeal was founded in 2009 as a university spin-out.
Smith+Nephew is a global medical technology company. It designs and manufactures technology that takes the limits off of living. It was founded in 1856 and has more than 10,000 employees across the globe. According to Smith+Nephew’s fourth quarter and full year 2022 results, group revenue in 2022 was $5.2 million.
CartiHeal has large quantities of raw material in the United States and, by the close of the transaction, will also have ample U.S. stock to support a full commercial launch. All CartiHeal employees are expected to transfer to Smith+Nephew. The transaction is expected to close in the first quarter of 2024. The acquisition will be financed from existing cash and debt facilities.
According to data captured in the LevinPro HC database, this transaction represents the 99th Medical Devices acquisition of the year. Between January 1, 2022, and November 27, 2022, 108 Medical Devices transactions were reported.
