BTG to buy Biocompatibles
pharmafile | November 19, 2010 | News story | Research and Development | BTG, Biocompatibles
BTG is to pay £156 million to acquire Biocompatibles, the drug-device specialists.
Established in 1984 and floated in 1995, Biocompatibles specialises in bead products that are implanted into the body to prevent blood flowing to tumours. The company also makes stents and other innovative drug-device combinations.
The companies say the transaction will create a faster growing, financially stronger specialist business with greater reach into international markets.
BTG’s chairman John Brown says the deal will improve its financial strength and allow it to increase investment in the marketing of Biocompatibles’ products and accelerate the development of Biocompatibles’ specialist oncology products.
In particular, the BTG Directors intend to undertake registration trials in respect of Biocompatibles’ embolising beads and drug-eluting beads to increase the products approved indications and the territories in which they can be marketed.
The company also intends to capitalise on Biocompatibles’ products in the US to help its existing portfolio earn higher sales in the world’s most important market.
The company also gains Biocompatibles’ BrachySciences and CellMed businesses and attractive potential in the form of the GLP-1 compound programme partnered with AstraZeneca.
The combined company could also be in line for future milestone revenues and royalties from programmes in sepsis, diabetes, cancer and multiple sclerosis (from existing partnerships with AstraZeneca, Tolerx/GSK, Genzyme and Johnson & Johnson).
The merger is forecast to produce cost savings of around £3 million a year by reducing duplicated head office and administrative costs. Overall, BTG says it expects to see a mid-teens percentage return on investment in the third full financial year after the acquisition is completed.
Dr John Brown, chairman of BTG said: “We believe that this transaction accelerates the strategic transformation of BTG and creates a financially stronger specialist healthcare business with improved growth prospects. With a broader pipeline for mid term growth, this deal expands the platform from which to develop a sustainably profitable specialist healthcare company.”
Gerry Brown, chairman of Biocompatibles, commented: “BTG is a successful international specialist pharmaceuticals company with attractive prospects for growth, profitability and value creation. These prospects will be enhanced by its enlargement with the acquisition of Biocompatibles. The terms of the acquisition fairly reflect the current and potential value of Biocompatibles’ products and pipeline and give our shareholders the opportunity to participate in future value creation.”
Andrew McConaghie
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