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Essex Woodlands
(www.ewhv.com(http://ctt.marketwire.com/?release=883635&id=1574470&type=1&url=http%3a%...)),
a global healthcare growth equity and venture capital firm, announced
today the launch of Bioventus LLC, a strategic partnership with Smith
& Nephew, the largest UK-based medical device company.
Headquartered in Durham, N.C., Bioventus is Smith & Nephew's former
Biologics Division/Clinical Therapies business that generates about
250 million dollars in revenue annually on a worldwide basis. The
product line includes the EXOGEN@ Ultrasound Bone Healing System, and
hyaluronic acid joint fluid therapy products, SUPARTZ@ and DUROLANE@,
which treat the symptoms of osteoarthritis. These innovative products
provide clinical benefits to patients and cost savings to payers by
delaying or eliminating the need for knee surgery In the case of bone
stimulation, expensive follow-on procedures for bone fractures which
do not heal are avoided. Bioventus' products will be marketed in the
U.S. (in the case of EXOGEN and SUPARTZ products) by a 250+ person
sales force and, for the time being through a distribution agreement
with Smith & Nephew in most markets outside the United States for a
period of time until those markets can be transferred to Bioventus.
"For years, patients and healthcare providers have relied on our
innovative products and our customer-facing professionals who work
directly with them to assist in providing quality care," said Mark
Augusti, CEO of Bioventus, who previously was the President of Smith &
Nephew's Biologics Division. "As an independent company with the
support and backing of the Essex Woodlands led investor syndicate and
Smith & Nephew, we will be able to focus attention and resources to
more quickly deliver new clinically proven and cost effective
solutions to market."
"We are very excited about the formation of Bioventus and our
strategic partnership with Smith & Nephew," commented Marty Sutter,
Founding Partner and Managing Director of Essex Woodlands and
Bioventus Board member. "Bioventus epitomizes our growth equity
strategy of using the cash flow from well-established businesses to
fund innovation that can be nurtured and incubated in a highly-focused
private company."
"Many medical device spinouts that have sufficient size and are
profitable have been extremely successful," said Guido Neels, Managing
Director of Essex Woodlands and Bioventus Board member. "Bioventus has
a large global footprint and the resources to fund research or acquire
regenerative technology assets that will improve patient outcomes."
Essex Woodlands and its equity partners Pantheon Ventures, Spindletop
Healthcare Capital, Alta Capital Partners, Ampersand Capital Partners,
and White Pine Medical, are investing $118M to acquire 51% of
Bioventus.
Partner Scott Barry, who led this transaction for Essex Woodlands,
observed, "Bioventus is a very unique and exciting partnership between
a healthcare focused investor group, Essex Woodlands, and a strategic
partner, Smith & Nephew, which created a highly innovative structure
to build a leading orthopedic biologics company."
Smith & Nephew, which also provided debt financing for the deal in the
form of a $160 million 5-year note assumed by Bioventus, will retain a
49% equity stake in Bioventus.
"With superb products, a proven team, world class investors and a
strong strategic partner, Bioventus is well positioned to continue to
grow its core products, and expand internationally while funding
pioneering research," remarked White Pine Medical's CEO Dan Lemaitre,
who will serve as Chairman of the Bioventus Board of Directors.
Reed Smith LLP acted as legal counsel to Essex Woodlands for this
transaction.
About Essex Woodlands With over $2.5 billion under management, Essex
Woodlands is one of the largest and oldest growth equity and venture
capital firms pursuing investments in pharmaceuticals, biotechnology,
medical devices, health care services, and health information
technology. Since its founding in 1985, Essex Woodlands has maintained
its singular commitment to the healthcare industry and has been
involved in the founding, investing, and/or management of over 120
healthcare companies ranging across all sectors, stages and geography.
The team is comprised of 25 senior investment professionals with
offices in Palo Alto, Houston, New York and London. For more
information please see
www.ewhv.com(http://ctt.marketwire.com/?release=883635&id=1574473&type=1&url=http%3a%...).
About Smith & Nephew Smith & Nephew is a global medical technology
business dedicated to helping improve people's lives. With leadership
positions in Orthopaedic Reconstruction, Advanced Wound Management,
Sports Medicine and Trauma, Smith & Nephew has almost 11,000 employees
and a presence in more than 90 countries. Annual sales in 2011 were
nearly $4.3 billion. Smith & Nephew is a member of the FTSE100 (LSE:
SN) (NYSE: SNN).
About Bioventus Bioventus is a global leader of active orthopaedic
healing, providing clinically proven and cost-effective therapies and
diagnostics that help patients regain active lifestyles. The company's
innovative products include the market-leading bone stimulation device
and osteoarthritis joint fluid therapies. Bioventus' adherence to high
quality standards, its commitment to evidence-based medicine and its
strong ethical behavior make it a trusted partner for physicians
worldwide.
For more information, visit
www.BioventusGlobal.com(http://ctt.marketwire.com/?release=883635&id=1574476&type=1&url=http%3a%...)
or follow the company on Facebook
(facebook.com/bioventus(http://ctt.marketwire.com/?release=883635&id=1574479&type=1&url=http%3a%...))
or Twitter (@bioventusglobal).
EXOGEN is a registered trademark of Bioventus LLC
DUROLANE is a registered trademark of Q-Med AB.
SUPARTZ is a registered trademark of Seikagaku Corporation.
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