Smith & Nephew buys Osiris in regenerative medicine push

Medical equipment company Smith & Nephew has agreed a $660 million deal to buy US biotech Osiris Therapeutics that expands its business into regenerative medicine. Osiris makes medical products used to treat skin, bone and cartilage damage, with the bulk of its revenues coming from Grafix and Stravix – two cryopreserved placental tissue products used respectively as a skin substitute for wound healing and a surgical wrap for soft tissue repair. UK-based S&N is paying $19 in cash per share in Osiris, a 37% premium on its average share price in the last three months but a little below its closing level yesterday. S&N has made no secret of its desire to make bolt-on acquisitions to diversify its business under recently-appointed CEO Namal Nawana, and had been linked to a possible $3 billion takeover of spinal surgery company NuVasive last month which thus far hasn’t come to fruition.