UK's Smith & Nephew Acquires Texas-based Healthpoint Biotherapeutics

UK's Smith & Nephew Acquires Texas-based Healthpoint Biotherapeutics

Smith & Nephew PLC said  it will buy U.S. wound care business Healthpoint Biotherapeutics for $782 million in cash, boosting the U.K. medical technology company's U.S. presence and providing first access to the lucrative bioactive wound healing market.

Healthpoint will be integrated into Smith & Nephew's advanced wound management division and is expected to generate $190 million of revenue in 2012, mainly through sales of its Collagenase Santyl ointment, which is used to treat ulcers and severe burns.

The deal will be financed through Smith & Nephew's existing cash resources and bank facilities and is expected to complete by the end of 2012.

"The acquisition brings material revenues from a fast growing product range, an attractive pipeline, and commercial and R&D capabilities upon which we will build," Smith & Nephew Chief Executive Olivier Bohuon said.

"Healthpoint will double advanced wound management division's U.S. sales and over time will offer many opportunities to expand and improve the combined U.S. business," he added.

Healthpoint will also give Smith & Nephew its first access to the $1 billion market for bioactive wound healing, the fastest-growing segment of the advanced wound care sector.

Fort Worth, Texas-based Healthpoint develops bioactive therapies for the treatment of chronic wounds. It employs 460 people and in 2011 posted revenue of $151 million.

"We believe now is the right time to allow [our business] to grow to the next level by joining a global organization like Smith & Nephew," said Paul Dorman, founder, chairman and co-owner of Healthpoint.

Shares opened lower on the news and were down 2.2% at 645 pence in early trade.