Collagenase Wound Care Product Acquired

Smith & Nephew Plc
1 February 2000




            SMITH & NEPHEW ACQUIRES COLLAGENASE WOUND CARE PRODUCT

Smith  &  Nephew,  the  global  medical device company,  today  announced  the
acquisition of the Collagenase product of BASF Pharma, the pharmaceutical  arm
of  BASF  AG,  for  a  total  cash consideration  of  £74m.   The  acquisition
represents a major addition to the group's Wound Management business.

Collagenase Product
The BASF Pharma Collagenase product, branded as Santyl in North America and as
Iruxol and Novuxol in the rest of the world, is one of the three largest wound
care  products globally.  The product is an enzyme which cleanses and debrides
(removes  dead tissue from) chronic wounds and burns.  The brands have  strong
market positions in the US, Germany, Spain, Italy and Brazil.  Sales for  1999
are estimated at £44m, growing at an approximate underlying rate of 8%.

Acquisition Arrangements
Smith  &  Nephew  will  acquire  the  trademarks,  manufacturing  rights   and
distribution rights, in a phased programme, for all territories outside  North
America.   This  acquisition is conditional on approval of the Federal  Cartel
Office  in  Germany.   In  North America, Smith  &  Nephew  will  acquire  the
trademarks  and  an  exclusive  sub-licence for  the  marketing  and  sale  of
Collagenase, where the product is sold under licence from Advance  Biofactures
Corporation (a subsidiary of Biospecifics Technologies Corporation), which has
given  consent  to  this  agreement and will continue  to  supply  the  active
ingredient  for the product sold in North America.  BASF Pharma will  continue
to  manufacture  the product on behalf of Smith & Nephew  under  a  long  term
agreement.

Smith  & Nephew will assume distribution of the product immediately in the  US
and Canada and on a phased basis in the rest of the world.

Of  the  total cash consideration of £74m, £37m will be payable in 2000,  £28m
payable  in 2001 and £9m payable over a five year period commencing  in  2002.
Apart  from  £1m of inventory, no other tangible assets are included.   Profit
will cover interest and amortisation in 2000 and progressively add to earnings
thereafter.

Strategy
Collagenase adds one of the three largest global products to Smith &  Nephew's
Wound  Management  business and establishes it in a leading  position  in  the
pharmaceutically  active segment of the wound care  market.   This  sector  is
expected  to  continue to grow strongly.  We will be taking over  the  selling
resource  from  BASF  Pharma  in  a number  of  key  markets  which  will  add
significant  critical mass to the group's sales and marketing capability.   In
the US alone this will give the company effectively a full time sales force of
190,  the  second  largest  in this sector.  In  major  markets  where  it  is
currently  not  registered, such as the UK, France, Japan and  Australia,  the
intention  is  to  establish Collagenase and to drive  further  the  product's
growth rate.

Chris   O'Donnell,  Chief  Executive  of  Smith  &  Nephew,  commented:   'The
acquisition  of  Collagenase  represents a transforming  step  for  our  Wound
Management business.  It provides a 20% step-up in our Wound Management sales,
adding  significant  selling resource world-wide,  and  establishing  Smith  &
Nephew  as  clear  global leaders in this market.  Our  focus  on  the  growth
markets  in Orthopaedics, Endoscopy and Wound Management is further emphasised
by this acquisition.'


Enquiries:

Chris O'Donnell, Chief Executive   Tel: [phone]
Smith & Nephew plc                 Fax: [phone]

Peter Hooley, Finance Director     Tel: [phone]
Smith & Nephew plc                 Fax: [phone]

David Yates                        Tel: [phone]
Financial Dynamics                 Fax: [phone]