BTG acquires promising oncology pipeline in Galil Medical takeover
BTG (LSE: BTG) has announced that is has agreed to acquire Galil Medical, a leading provider of cryoablation products for the treatment and palliative care of kidney and other cancers.
The process of using extreme cold to destroy or damage tissue has shown promise in fighting against tumours. As compressed gas passed through the needle, the tip of the needle is cooled which forms an ice ball that engulfs the tumour and destroys the tissue.
Global revenues of the company in 2015 were $22million, with US revenues accounting for $15 million. BTG will acquire Galil Medical for an initial cash sum of £58.3 million and up to £17.6 million in future regulatory and commercial milestone payments. BTG expects that the transaction will be earnings accretive in the first full year of ownership.
The transaction is expected to be closed by the end of June 2016. In their full results for 2015, Galil Medical reported gross assets of $14.1 million and a loss before tax of $8.5 million.
Louise Makin, CEO at BTG, says: “This bolt-on acquisition builds on our leadership in interventional oncology, expanding our portfolio of minimally invasive therapies with the leading technology in the cryoablation of kidney cancer. It also offers significant pipeline opportunities, including lung and bone metastases if regulatory approvals are granted.
“In addition to enhancing our offering to interventional radiologists, Galil Medical provides access to our specialist physicians that may in future include pulmonary specialists, complementing our existing PneumRx and EKOS businesses. Longer term, we are excited by the opportunity to explore the use of our locoregional radiation and cryoablation therapies alongside other developing technologies.”
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