Smith & Nephew to Acquire Ceterix Orthopaedics for up to $105 Million
Smith & Nephew today announced that it has agreed to acquire Ceterix Orthopaedics, the developer of the NovoStitch Pro Meniscal Repair System for an initial cash consideration of $50 million and up to a further $55 million over the next five years, contingent on financial performance.
The NovoStitch Pro will be sold through Smith & Nephew's extensive sports medicine sales force as well as Ceterix’s existing dedicated sales force.
What is the NovoStitch Pro Meniscal Repair System?
NovoStitch addresses complex meniscal tear patterns not adequately served by other repair systems and is highly complementary to Smith & Nephew’s leading FAST-FIX 360 Meniscal Repair System, which addresses vertical tears, the most commonly repairable meniscal injury today.
Currently more than 1.2 million meniscal tears are treated surgically in the US each year. In only 15-20%1 of the cases is the meniscus repaired, rather than removed. With products like NovoStitch Pro and FAST-FIX 360 we see the opportunity to double this proportion in the medium term.
"NovoStitch Pro is an outstanding technology that addresses an unmet clinical need,” said Brad Cannon, President Sports Medicine and ENT, Smith & Nephew. “We are excited by the opportunities to take this new option to our customers. No other company is better positioned to support changing clinical practice as the standard for meniscal treatment pivots from resection to repair.”
The transaction is expected to close in early 2019, subject to the satisfaction of customary conditions.