Smith & Nephew buys Rotation Medical for up to $210m

Medical technology business Smith & Nephew has completed the acquisition of Rotation Medical Inc, which develops novel tissue regeneration technology for shoulder rotator cuff repair, for $125m, with a further $85m due over the next five years contingent on financial performance.

The company said Rotation Medical's rotator cuff system is "highly complementary" to its existing portfolio of shoulder repair technologies to supplement repairs of more complex tears. The bioinductive implant helps tendons heal by inducing growth of new tendon-like tissue, offering the potential to prevent tear progression and reduce the incidence of re-tears.

The system, which incorporates a breakthrough technology and technique that balances biomechanics and biology to enhance the body's natural healing response, will be sold through S&N's larger sports medicine sales force and the integrated Rotation Medical sales team.

It has 510(k) clearance for sale in the US and a filing is being prepared for approval in the EU. 510(k) clearance is a premarket submission made to the Food and Drug Administration to demonstrate that the device to be marketed is at least as safe and effective, that is, substantially equivalent, to a legally marketed device that is not subject to premarket approval.

According to Millennium Research Group, there are more than 650,000 rotator cuff procedures taking place annually in the US growing at a rate of 5-6% per year.