Smith & Nephew Bolsters Wound Care Management Business with Major Acquisition
Healthpoint Biotherapeutics, a wound care company based in Fort Worth, Texas, has been acquired by Smith & Nephew in a cash deal worth $782 million. This is a major gain for the British company, which provides devices in the orthopedic, sports medicine, trauma, and advanced wound management spaces. Healthpoint specializes in bioactive debridement, dermal repair, and regeneration wound care treatments.
“The acquisition of Healthpoint is an important step for Smith & Nephew,” said Olivier Bohuon, CEO of Smith & Nephew. “Strategically, it reinforces our Advanced Wound Management division by giving us a strong position in the fast growing area of bioactive wound care treatment. It brings material revenues from a fast growing product range, an attractive pipeline, and commercial and R&D [research and development] capabilities upon which we will build. The combination benefits our customers, offering them a truly unique wound care business—having leadership positions across exudate and infection management, negative pressure and bioactives.”
Bioactives, according to Smith & Nephew officials, is the fastest growing area of advanced wound management. Bioactive products work with the body’s natural healing processes to accelerate healing, as opposed to merely protecting the wound—and there is increasing demand for such products to treat diabetic foot ulcers in particular. The acquisition of Healthpoint will bring a range of complementary bioactive debridement (the removal of dead tissue), dermal repair, and regeneration products generating an estimated $190 million in 2012 revenues. Smith & Nephew also gains an established R&D capability in next-generation bioactive therapies including a product pipeline with lead product “HP802-247” entering Phase 3 trials for the treatment of venous leg ulcers, a large potential opportunity.
In August last year, Healthpoint reported positive data from a Phase 2b clinical trial for HP802-247 in the treatment of venous leg ulcers, demonstrating that the compound met both its primary and secondary endpoints. Commercial launch could occur as early as 2017, the company projects.
“Healthpoint and Smith & Nephew have much in common—our commitment to innovation, the desire to serve healthcare professionals and a fundamental dedication to improving the quality of life for patients,” said Paul Dorman, founder, chairman and co-owner of Healthpoint. “We are very proud of our employees and the business we have built and believe now is the right time to allow it to grow to the next level by joining a global organization like Smith & Nephew.”
Smith & Nephew intends to build upon Healthpoint’s strong presence in the United States, established commercial organization and complementary product range. The business will continue to be headquartered in Fort Worth.
Smith & Nephew’s U.S. offices are located in Andover, Mass. and Memphis, Tenn.