Under the terms of the agreement, shareholders of Osiris will receive $19.00 in cash for each share of Osiris common stock.
Smith & Nephew Plc said on Tuesday it would buy USA -based regenerative medicine maker Osiris Therapeutics for $660 million (500.4 million pounds), as the British medical products maker looks to bulk up in an area that is quickly growing.
"Greater presence in the fast growing regenerative medicine market enhances our portfolio and will help immediately accelerate our wound management business as well as provide longer term innovations in additional channels and indications", S&N's chief executive officer Namal Nawana commented in the statement.
The company's strategy "includes acquiring fast-growing technologies where we can broaden distribution and add value", said Namal on a conference call, noting that it also ramps up the company's position in the United States wound care market. The news comes after the FTSE 100 group updated investors on its full-year performance last month, posting a rise in revenue, while revealing that restructuring costs had pressured its profit margin last year. Grafix and Stravix participate in the USA skin substitute market, which is now worth $900m a year and growing at 7% annually, according to data from SmartTrak Market Research.
The president of the company's advanced wound management division, Simon Fraser, said: "Grafix offers a compelling new option for managing hard to heal wounds and Stravix expands our tissue fix portfolio".
Smith & Nephew plc is a multinational medical equipment manufacturing company headquartered in London, with annual sales in 2018 of $4.9 billion. It has achieved commercial success with products in orthopedics, sports medicine and wound care.