Outside of surgery, physicians can do very little to treat severe rotator cuff tears. Israeli company OrthoSpace is aiming to offer a new treatment option. It's raised an $8 million venture round led by Healthpoint Capital that will finance a pivotal, U.S. trial for the company's biodegradable balloon system InSpace.
With the acquisition of two medical software programs from Andover, MA's S2 Interactive, Smith & Nephew is throwing more chips on the table when it comes to its disruptive, rep-less sales pilot program.
The FDA slapped Smith & Nephew with a warning letter for quality-control violations at its Andover, MA, facility related to problems with some of the company's mechanical morcellators for removal of intrauterine tissue. The company has placed a hold on shipments of its Truclear Ultra Reciprocating Morcellator 4.0 while it further investigates customer complaints.
Smith & Nephew was down 8% on the March 3 news that Stryker now has a massive $2.6 billion authorization available for share repurchases. That's a significant shift in strategy for Stryker, which has been highly acquisitive in the last few years and has long been rumored as a potential buyer for Smith & Nephew.
Smith & Nephew is working toward having two-thirds of its revenue coming from higher growth areas. Acquisitions are core to that goal--in fact, during the fourth quarter any organic growth was wiped out by the impact from currency exchange and the only revenue growth came from its surgical devices acquisitions, which grew by 12%.
An aggressive acquisition strategy in order to broaden its product usage in trauma units and hospitals continues to be the focus for Stryker.
Stryker CEO Kevin Lobo expounded on the importance of specialized sales forces during his presentation at the JP Morgan Healthcare Conference in San Francisco and took a jab at Smith & Nephew's contrasting rep-less pilot program, which aims to cut implant prices in half through the use of automation.
Bloomberg reports that Stryker is planning to offer a premium for the U.K.'s S&N of about 30%. Currently, the target has a valuation of about $16.3 billion. The sources say a tax inversion is not planned. However, one of the unnamed sources also says Stryker's management could change its mind.
Rumors have been circulating in recent weeks that the French CEO of Smith & Nephew, Olivier Bohuon, would jump ship to run Paris-based Sanofi. But Bohuon told employees at a town hall meeting that he is "very happy" at Smith & Nephew, and several people with knowledge of the matter said he isn't planning to leave.
A U.K. law successfully thwarts overly aggressive acquisition deals from taking large bites out of the medical device industry in the country.