Smith & Nephew allots US$1.5 billion for acquisitions
The UK's largest medical device manufacturer, Smith & Nephew Ltd, announced the US$1.5 billion budget allotted for its acquisition plans. Smith & Nephew is currently looking for US wound care companies that are ripe for acquisition, along with other potential trauma and sports medicine deals.
The multinational medical equipment manufacturing company announced plans of sourcing deals and acquiring manufacturers as well as distributors in the world's emerging markets. The acquisitions will support the company's new focus as they market more affordable products in countries like China, India, Russia and Brazil.
Smith & Nephew Plc Chief Executive Officer Olivier Bohuon said, "The company plans to introduce its first so-called mid-tier wound products this year. We need to bring them products which are appropriate, which means low cost and a different business model."
The company's move to increase acquisitions and deals are part of its overall strategy of decreasing reliance in orthopedics to assist patients who decline knee and hip implant surgery due to increased costs as well as the lack of financial support.
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