Smith & Nephew buys skin heal firm in bid to dominate sector

 
Michael Bow
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MEDICAL technology firm Smith & Nephew yesterday continued its push into the wound healing market by striking a $782m (£487.5m) deal to buy a US company specialising in spray-on treatment for cuts and grazes.

The FSTE 100 listed company will buy the assets of Texas-based Healthpoint Biotherapeutics in a $782m all cash deal as it seeks to push the business into higher growth areas like wound care.

Smith & Nephew said it was hoping to capitalise on the $1bn bio-active market, the fastest growing sector of the wound care market.

Healthpoint makes Collaganese Santyl which is the only enzymatic treatment available in the US. The company reported revenues of $190m this year, delivering an increase of 25 per cent on the $151m of the previous year.

Roger Teasdale, president of Smith & Nephew’s advanced wound management unit, said the firm would push on with the development of a new product, codenamed HP802-247, which can be used to treat diabetic leg ulcers.

Smith & Nephew specialises in making artificial hips and limbs.

Chief executive Oliver Bohuon said the Healthpoint acquisition tied in with the firm’s push to re-orientate the business towards faster growing sectors.

ADVISERS DEUTSCHE BANK

JAMES ARCULUS SIMON ELLIOT
DEUTSCHE BANK

Smith & Nephew’s push into the bioactive wound care space was assisted by Deutsche Bank’s well regarded Europe, Middle East and Africa healthcare team, which is based out of London.

Leading on the Smith & Nephew deal was James Arculus, Michael Cohen and Simon Elliot. Arculus is managing director in Deutsche’s UK investment banking team, Cohen is co-head of global health care investment banking while Elliot is director in the EMEA healthcare team.

Arculus has been involved in some of the biggest deals on the market in his 19 years at Deutsche.

Most recently he advised UK Financial Investments on the sale of state owned bank Northern Rock to Sir Richard Branson’s Virgin Money as well as advising Scottish & Newcastle on the offer for the business from Carlsberg and Heineken.

He also was also a member of the bank’s advisory teams on the acquisition by US cheese manufacturer Kraft of Birmingham-based chocolate maker Cadbury.

Elliot helped lead the deal from the healthcare team side. The bank’s EMEA healthcare team is headed by Darren Campili and is ranked top in EMEA healthcare.

The bank has helped advise on some of the big deals which have driven the healthcare market in the past few years.

It was adviser to EQT on acquisition of BSN Medical for €1.8bn in June this year and also advised private equity firm Advent on its all cash acquisition of Mediq. Overseas it helped advise Kazanah on its acquisition of Acibedem in Turkey.

The bank has also been active in bringing healthcare and pharmaceutical firms to market after executing several initial public offerings. It helped float NMCin London for £117m as well as on the float of Russia’s MD Medical Group.