Smith & Nephew, a U.K.-based global media technology business, established a joint biologics venture with Essex Woodlands (U.S.), a special healthcare growth equity and venture capital firm headquartered in Durham, N.C. The move will bolster Essex Woodland’s pre-existing biologics and clinical therapies division in Durham, while Smith & Nephew will receive approximately $98 million cash and a $160 million five-year note from the new entity, Bioventus.

With combined resources, Bioventus will be able to focus on longer-term development projects; both parent companies plan to invest a significant portion of Bioventus’s cash flow into R&D over the next five years. Meanwhile, the entity will continue to market its current portfolio of products, such as the EXOGEN Ultrasound Bone Healing System.

“We see tremendous growth potential with this new venture as more patients discover how active products can help heal and treat joint and bone ailments without invasive surgery,” said Marty Sutter, founding partner and managing director of Essex Woodlands.