Smith & Nephew to spin off biologics unit into JV

LONDON Jan 4 (Reuters) - Smith & Nephew, Europe's largest artificial hip and knee maker, is to spin off its biologics business into a new joint venture that will be majority owned by U.S. healthcare equity investor Essex Woodlands.

The British company said on Wednesday it would receive approximately $98 million in cash, which will be used to pay down debt, and a $160 million 5-year note from the new joint venture, to be known as Bioventus.

Smith & Nephew will transfer the vast majority of its U.S. biologics team and clinical therapies business to Bioventus, in which it will have a 49 percent stake. For the time being, Smith & Nephew will continue to distribute clinical therapies products outside the United States.