UK Firm Buys Israeli Knee Implant Startup For Up To $330M

Israeli startup CartiHeal, developer of a knee implant that regenerates cartilage and bone, has been acquired by a British medtech firm in a deal costing up to $330 million. 

CartiHeal’s Agili-C implant treats cartilage problems and osteochondral defects (damage involving both the cartilage and underlying bone) in knee joints.

When the Agili-C is inserted, blood infiltrates its porous surface and makes it biodegrade over time, which causes cells to adhere to the surface and create new bone and cartilage.

Smith+Nephew will initially pay $180 million for the startup, and up to another $150 million depending on the sales performance of its implant.

The deal comes after US orthobiologics firm Bioventos pulled out of an offer to buy CartiHeal for up to $500 million, also based on sales milestones. 

Damaged cartilage is not capable of regrowing or healing itself, however the bone tissue underneath can help stimulate new growth under specific conditions. CartiHeal says that it has created the only implant that can promote natural growth of cartilage and its underlying bone.

“As a leader in sports medicine and with a deep knowledge of biologics, Smith+Nephew is the ideal new home for Agili-C,” said Nir Altschuler, CEO and founder of CartiHeal.

“We are excited at the prospect of our technology helping many more patients overcome knee pain.”