WASHINGTON, D.C. 20549

                        Report of Foreign Private Issuer

                        Pursuant to Rule 13a-16 or 15d-16
                        of the Securities Exchange Act of

                                  May 11, 2007

                        Commission File Number 001-14978

                               SMITH & NEPHEW plc
                               (Registrant's name)

                                15 Adam Street
                           London, England WC2N 6LA
             (Address of registrant's principal executive offices)

     [Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.]

               Form 20-F  X                   Form 40-F
                         ---                            ---

     [Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1).]

               Yes                            No  X
                   ---                           ---

     [Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7).]

               Yes                            No  X
                   ---                           ---

     [Indicate by check mark whether by furnishing the information contained
in this Form, the registrant is also thereby furnishing information to the
Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of

               Yes                            No  X
                   ---                           ---

     If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2 (b) : 82- n/a.


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                 Smith & Nephew plc

Date: May 11, 2007
                                                 By:   /s/ Paul Chambers
                                                 Paul Chambers
                                                 Company Secretary

Smith & Nephew enters the negative  pressure  wound therapy  market  through the
acquisition of BlueSky Medical Group, Inc

11 May 2007

Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology business,
announces  that its Advanced  Wound  Management  business has agreed to purchase
BlueSky Medical Group, Inc ("BlueSky"),  a privately-held  company headquartered
in  Carlsbad,  California,  from its  founders  for an  initial  payment  of $15
million.  The company has developed  products for treating  chronic wounds using
negative  pressure wound therapy  ("NPWT") and  manufactures a range of negative
pressure pumps and wound dressing kits to serve its global customer base.

The market for NPWT is the fastest growing segment of the woundcare  market.  It
has expanded  rapidly in recent years and is now estimated to be a global market
worth $1.2 billion in 2006. The market is growing at an annual rate in excess of
12% in the  United  States and  greater  than 25% in non-US  markets.  NPWT is a
technology used to treat chronic wounds such as diabetic ulcers, pressure sores,
and post-operative and hard-to-heal  wounds. NPWT aids the more rapid healing of
wounds by the application of sub-atmospheric  pressure to an open wound. Smith &
Nephew does not currently  operate in this market  segment.  The two founders of
BlueSky,  Richard Weston and Tim Johnson will assist in integrating the business
into Smith & Nephew's Advanced Wound Management business.

Smith & Nephew has agreed to pay $15 million  initially  with further  milestone
payments of up to $95 million related to revenues and other events.  BlueSky had
revenues of approximately  $11 million from its distributors in 2006 (equivalent
to $55  million  in  market  sales)  and net  assets  of under $1  million.  The
acquisition  of BlueSky is expected to dilute Smith & Nephew's  2007 earnings by
around 1%, to be broadly  neutral in 2008 and to be accretive from 2009 onwards.
The impact in 2007 will be to reduce the trading  margin of the  Advanced  Wound
Management business by approximately 1% (approximately 2% in the second half).

BlueSky has been engaged in litigation with KCI, another NPWT business,  and was
recently  successful in its defence of a patent infringement suit. Although this
decision is the subject of an appeal,  Smith & Nephew  believes  that  BlueSky's
products do not infringe KCI patents.

David Illingworth, Chief Operating Officer of Smith & Nephew, said:

"We are very pleased to acquire  this  business  which gives us immediate  entry
into the negative pressure wound therapy market,  the fastest growing segment of
the advanced wound care market. This significantly improves the long term growth
prospects of the Advanced Wound Management business of Smith & Nephew."

Joe Woody, President of Smith & Nephew's Advanced Wound Management Division,

"We are very excited by this  acquisition and the market position that this will
give us. We look forward to adding BlueSky's  products to our customer solutions
for hard-to-heal  wounds and to working with these exciting  products.  With our
global  scale,   distribution   channels  and  customer   understanding  we  can
effectively leverage BlueSky's sales and profits into a substantial business."


Liz Hewitt                                              +44 (0) 20 7401 7646
Group Director Corporate Affairs
Smith & Nephew

David Yates                                             +44 (0) 20 7831 3113
Financial Dynamics - London

Jonathan Birt                                           +1 (212) 850 5634
Financial Dynamics - New York

About Smith & Nephew

Smith  &  Nephew  is a  global  medical  technology  business,  specialising  in
Orthopaedic Reconstruction, Orthopaedic Trauma and Clinical Therapies, Endoscopy
and Advanced  Wound  Management  products.  Smith & Nephew is a global leader in
arthroscopy  and  advanced  wound  management  and is one of the leading  global
orthopaedics companies.

Smith & Nephew is  dedicated  to helping  improve  people's  lives.  The Company
prides  itself  on the  strength  of its  relationships  with its  surgeons  and
professional  healthcare  customers,  with whom its name is synonymous with high
standards of performance,  innovation and trust. The Company has 8,800 employees
and  operates  in  31  countries  around  the  world  generating   annual  sales
approaching $2.8 billion.

About BlueSky Medical Group Inc.

BlueSky  Medical  Group  Inc.  was  formed  in 2003 and is  based  in  Carlsbad,
California. The company had revenues of approximately $11m from its distributors
in 2006, which is equivalent to $55m in market sales. The company had net assets
of under $1m at the end of 2006.

The company  has  approximately  4,000 pumps in the market,  which is about a 5%
market share.  For further  information,  see the  company's  website at

Forward-Looking Statements

This press release  contains  certain  "forward-looking  statements"  within the
meaning  of the  US  Private  Securities  Litigation  Reform  Act  of  1995.  In
particular,  statements  regarding  expected  revenue growth and trading margins
discussed under "Outlook" are  forward-looking  statements as are discussions of
our product pipeline.  These statements,  as well as the phrases "aim",  "plan",
"intend",   "anticipate",   "well-placed",   "believe",   "estimate",  "expect",
"target", "consider" and similar expressions, are generally intended to identify
forward-looking  statements.  Such forward-looking  statements involve known and
unknown risks,  uncertainties  and other important factors  (including,  but not
limited to, the outcome of  litigation,  claims and regulatory  approvals)  that
could cause the actual  results,  performance or achievements of Smith & Nephew,
or industry results,  to differ materially from any future results,  performance
or achievements expressed or implied by such forward-looking statements.  Please
refer to the  documents  that Smith & Nephew has filed with the U.S.  Securities
and Exchange  Commission  under the U.S.  Securities  Exchange  Act of 1934,  as
amended, including Smith & Nephew's most recent annual report on Form 20F, for a
discussion of certain of these factors.

All  forward-looking  statements in this press release are based on  information
available  to  Smith  &  Nephew  as of the  date  hereof.  All  written  or oral
forward-looking  statements  attributable to Smith & Nephew or any person acting
on behalf of Smith & Nephew are  expressly  qualified  in their  entirety by the
foregoing.  Smith & Nephew does not undertake any obligation to update or revise
any forward-looking  statement contained herein to reflect any change in Smith &
Nephew's expectation with regard thereto or any change in events,  conditions or
circumstances on which any such statement is based.