Pappas Capital, a life science venture capital firm, announced today that its portfolio company Rotation Medical Inc. has been acquired by Smith & Nephew plc, a UK-based global medical technology company. Smith & Nephew acquired the company for $125 million in initial cash consideration, plus an additional $85 million in potential milestone payments.
Rotation is the second exit this year by a Pappas portfolio company. Earlier this year, portfolio company CoLucid Pharmaceuticals was acquired by Eli Lilly for nearly $1 billion. Since 2014, three portfolio companies founded or co-founded by Pappas have been sold to large pharmaceutical companies: CoLucid; Afferent Pharmaceuticals, bought by Merck in 2016 for $500 million upfront and $750 million in milestones; and Lumena Pharmaceuticals, bought by Shire in 2014 for more than $300 million.
Including the above companies, over the past five years more than a dozen Pappas portfolio companies have been acquired or have completed an initial public offering – among them, Ultragenyx Pharmaceutical, TESARO, TYRX and Chimerix.
Pappas first invested in Rotation Medical in 2014, immediately following approval by the U.S. Food and Drug Administration of the company’s rotator cuff implant, a commercially available breakthrough technology with clinical evidence that demonstrates the ability to induce the growth of new tendinous tissue, resulting in increased tendon thickness and healing of tendon defects.
Pappas is currently investing out of its most recent fund, raised earlier this year. The new fund, Pappas Ventures V, has made investments in OrphoMed, Amplyx Pharmaceuticals and Kezar Life Sciences.
About Pappas Capital
Founded in 1994, Pappas Capital invests exclusively in the life sciences sector – biotechnology, biopharmaceuticals, drug delivery, medical devices and related ventures – across the United States and Canada. Pappas Capital has raised more than $500 million in capital and has guided the launch and/or development of more than 70 companies. For more information about Pappas Capital, please visit www.pappas-capital.com.
