Smith & Nephew turns over a new Leaf

Smith & Nephew’s acquisition of Leaf Therapeutics is nowhere near as game-changing as its $660m purchase of Osiris Therapeutics last month, but as the fourth buy S&N has made this year it shows how determined the UK group is to get new tech under its umbrella. Terms were not disclosed, but since Leaf has raised less than $10m in venture funding and already counted S&N as an investor the deal will not break the bank. In February 2017 S&N took a strategic investment in Leaf and signed up to distribute Leaf’s wireless patient monitoring system, a wearable sensor that tracks a high-risk hospital patient’s position to check that they are being moved often enough to avoid pressure ulcers and other injuries. Meanwhile the Osiris deal has run into trouble. A group of Osiris shareholders is suing to block the acquisition, claiming that the $19 per share purchase price is too low, having been based on miscalculated revenue projections. They claim that the offer should be in the region of $24 per share, which would imply an overall price of around $830m. S&N’s management will be hoping that the acquisition of Leaf goes more smoothly.

Smith & Nephew's recent increase in deal-making
Date Target Value ($m) Focus
April 1, 2019 Leaf Healthcare - Patient monitoring 
March 12, 2019 Osiris Therapeutics 660 General & plastic surgery; orthopaedics; wound management
March 12, 2019 Orthopaedic Joint Reconstruction business of Brainlab - Orthopaedics
January 22, 2019 Ceterix Orthopaedics 105 General & plastic surgery; orthopaedics; wound management
December 6, 2017 Rotation Medical 210 General & plastic surgery; orthopaedics
January 5, 2016 Blue Belt Technologies 275 General & plastic surgery; orthopaedics
July 10, 2015 Trauma and Orthopaedics business of Deost and DC - Orthopaedics
February 3, 2014 Arthrocare 1,500 Ear, nose & throat; endoscopy; general & plastic surgery; general hospital & healthcare supply; orthopaedics; wound management
Source: EvaluateMedTech, company communications.

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