BTG plc, has decided to acquire medical technology company Biocompatibles International plc for a total consideration of British Pound 177.2 million. As per the agreement, Biocompatibles' shareholders will receive 1.6733 new BTG shares and cash of 10 pence for each Biocompatibles share held. The acquisition is consistent with BTG's stated strategy of acquiring niche, high-value, late stage products targeting the specialist hospital market. The acquisition is expected to be completed by early February 2011.
Biocompatibles is a market leader in the use of beads for the treatment of cancer. It will provides BTG with a platform in interventional medicine with interventional oncology bead products. The Enlarged Group will have the improved financial strength and other enhanced resources to allow it to increase investment in the marketing of Biocompatibles' products and accelerate the development of Biocompatibles' specialist oncology products.
Further, the acquisition will help to have access to additional potential value drivers in Biocompatibles' BrachySciences and CellMed businesses and attractive upside potential in the form of the GLP-I compound programme partnered with AstraZeneca.
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 successfully 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.”