17 Sep 2013 07:13
BTG sells brachytherapy business to Eckert & Ziegler
London, UK, 17 September 2013: BTG plc (LSE: BTG), the specialist healthcare company, today announces the sale of its brachytherapy business to Eckert & Ziegler Group, based in Berlin, Germany.
Under the terms of the agreement, all of BTG's brachytherapy assets, including the products, associated intellectual property and the facility in Oxford, CT, USA, will transfer to Eckert & Ziegler on completion, which is anticipated in around 30 days. BTG will receive $5m on closing together with a 30% share of revenues from the products that are transferring for a period of 12 months commencing either with the start of production by Eckert & Ziegler or on January 2014, whichever is first.
Louise Makin, Chief Executive Officer, commented: "We are very pleased to reach this agreement with Eckert & Ziegler. The prostate brachytherapy market has not been core to BTG's business, but we believe our leading brachytherapy products and dedicated employees will fit very well as part of the Eckert & Ziegler Group."
BTG acquired the brachytherapy business in January 2011 when it acquired Biocompatibles International plc. In the financial year ended 31 March 2013, the brachytherapy business generated £7.3m of the Group's £233.7m revenues and contributed less than £1.0m of the Group's underlying operating profit (excluding acquisition adjustments and reorganisation costs) of £69.0m.
In May 2013, Biocompatibles voluntarily stopped the manufacture and distribution of the brachytherapy products following receipt of a warning letter from the FDA citing concerns relating to process validations, data analysis, complaint investigations and environmental controls at the facility. Significant progress has been made in identifying and implementing remedial actions to address the issues cited. Eckert & Ziegler will be responsible for completing this work and recommencing manufacture and sale of the products.
For further information please contact:
BTG | FTI Consulting |
Andy Burrows, Director of Investor Relations | Ben Atwell/Simon Conway |
+44 (0)20 7575 1741; Mobile: +44 (0)7990 530605 | +44 (0)20 7831 3113 |
Rolf Soderstrom, Chief Financial Officer | |
+44 (0)20 7575 0000 |
About BTG
BTG is an international specialist healthcare company that is developing and commercialising products targeting critical care, cancer and varicose veins. The company has diversified revenues from sales of its own marketed products and from royalties on partnered products, and is seeking to acquire new programmes and products to develop and market to specialist physicians.For further information about BTG please visit our website at www.btgplc.com.