Britain's Smith & Nephew to buy Osiris in regenerative products push

Henrietta Strickland
March 15, 2019

Osiris' 360 employees are expected to join the more than 16,000 Smith & Nephew employees on completion of the sale, which is expected in the second quarter of 2019, subject to customary closing conditions.

Smith & Nephew announced in a statement today that it had agreed to acquire Maryland-based Osiris Therapeutics for $19.00 per share in cash, representing a total equity value of approximately $660 million.

The deal will help Smith & Nephew better compete with bigger rivals such as USA -based Johnson & Johnson as Osiris's products, including skin and bone grafts, complements its portfolio of wound care products.

The company's strategy "includes acquiring fast-growing technologies where we can broaden distribution and add value", said Namal on a conference call, noting that it also ramps up the company's position in the U.S. wound care market.

Osiris posted revenue of $102m for the nine-months through September, up 19% on-year.

Smith & Nephew plc is a multinational medical equipment manufacturing company headquartered in London, with annual sales in 2018 of $4.9 billion.

Under the terms of the deal, the FTSE 100 group will begin a two-step tender offer to purchase all of the outstanding shares of Osiris common stock. It has achieved commercial success with products in orthopedics, sports medicine and wound care.

The takeover is an opportunity for Osiris to put a hard couple of years in its rear-view mirror, in particular a financial scandal in 2017 in which former company executives were accused by the US Securities & Exchange Commission (SEC) of overstating revenues and misleading investors and auditors.

Other reports by Click Lancashire

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