Smith & Nephew Buys Blue Belt Technologies

Smith & Nephew (London, United Kingdom) has made a bid to acquire robotic-assisted orthopedic surgery partner Blue Belt Technologies (Plymouth, MN, USA) for USD 275 million.

The two companies have been working together since July 2014, when they disclosed a partnership for the use of Blue Belt's Navio surgical system in partial knee replacements with the Smith & Nephew Journey Uni knee system. In a company statement, Smith & Nephew said it expects the Navio surgical system will give it an edge in sales over the Stryker (Kalamazoo, MI, USA) Mako system, and expect the annual revenue growth to be in excess of 50% over the medium-term from a 2015 base of approximately USD 19 million.

Smith & Nephew also expect significant growth from a range of new product launches that will expand Navio into indications beyond partial knees, such as a total knee system due to launch in 2017, and a future revision knee system, a highly complex and fast-growing area that is currently not served by robotics. A bi-cruciate retaining knee arthroplasty system that could offer patients more natural motion and greater stability by preserving the anterior and posterior cruciate ligaments is also in development.

“With regard to the selling price of the Mako system compared with the Blue Belt one, the Blue Belt system is considerably lower priced. It's approximately less than half the price of the Mako system, so there's considerable advantage in relation to that,” said Julie Brown, CFO of Smith & Nephew. “This is coupled with another advantage of the system, in the sense that it's a very portable system.”

“Our experience working with Blue Belt Technologies and our customer insight has convinced us that robotics will become increasingly mainstream across orthopedic reconstruction in the foreseeable future,” said Olivier Bohuon, CEO of Smith & Nephew. “This acquisition is a compelling strategic move, with the combination of complementary products and R&D programs creating a platform from which we can shape this exciting new area of surgery. It reinforces our distinctive orthopedic reconstruction strategy, which combines cutting edge innovation, disruptive business models and a strong emerging markets platform to drive outperformance.”

“Blue Belt Technologies has redefined robotics in orthopedic surgery, establishing strong traction with customers who are attracted by the high degrees of implant placement accuracy made possible by Navio, as well as its ease of use, portability and attractive economics,” said Eric Timko, president and CEO of Blue Belt Technologies. “We are delighted to be joining with Smith & Nephew, with whom we share a passion for innovation and a mission to support healthcare professionals. Together, we will realize the many opportunities to bring the benefits of robotics-assisted surgery to more patients and new indications.”

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Smith & Nephew
Blue Belt Technologies
Stryker