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Smith & Nephew to purchase regenerative medicine company for $210M: 3 points

Written by Mackenzie Garrity | Tuesday, 24 October 2017 20:44
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Smith & Nephew plans to acquire Minnesota-based Rotation Medical, a developer of regenerative medicine technologies for patients suffering from rotator cuff disease, for $210 million, according to Reuters.

Here are three points:

1. Smith & Nephew will pay $125 million upfront followed by $85 million over the next five years if certain financial targets are met.

2. The deal is supposed to close later this year, and while the purchase is not supposed to boost Smith & Nephew's earnings in 2018, the company expects earnings to increase in 2019.

3. Rotation Medical develops tissue regeneration technology for shoulder rotator cuff repair. The sale of the company is cleared in the U.S. and a filing is being prepped in Europe.