SMITH & NEPHEW PLC 
By 4 January 2012
Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology business, announces today that it has, through its subsidiaries ("Smith & Nephew"), agreed to form a joint venture with Essex Woodlands (), a specialist healthcare growth equity and venture capital firm, to further develop its Biologics and Clinical Therapies division. The transaction is subject to obtaining required regulatory approvals and satisfaction of other customary conditions.
The new entity, called Bioventus LLC ("Bioventus"), will be 51% owned by Essex Woodlands and 49% by Smith & Nephew. In addition to this shareholding, Smith & Nephew will receive approximately $98 million cash, which will be used to pay down debt, and a $160 million 5-year note from Bioventus. Smith & Nephew will transfer the vast majority of its US Biologics team and Clinical Therapies business to Bioventus and, for the time being, Smith & Nephew will continue to distribute Clinical Therapies products outside of the US.
"In a single act we have given our existing Biologics
business the resources to address longer-term development
projects, retained access to the exciting area of
orthobiologics, realised value for reinvestment in
nearer-term opportunities, and freed up management resource
to focus on driving efficiencies in established
markets. Essex Woodlands are strong partners and the
joint venture will benefit from their significant expertise
in developing healthcare businesses."
Bioventus will continue to market its current portfolio of products, including the EXOGEN
