Advertisement

BTG announces double acquisition and placing of 33m shares

BTG, the specialist healthcare company, has entered into an agreement to buy EKOS Corporation (EKOS), an interventional vascular business, and separately to buy the Targeted Therapies division of Nordion.

BTG, the specialist healthcare company, has entered into an agreement to buy EKOS Corporation (EKOS), an interventional vascular business, and separately to buy the Targeted Therapies division of Nordion.

Targeted Therapies will be purchased for a total cash consideration of around £133m.

This will be funded in part out of existing cash resources, with the balance being funded the net proceeds of a placing of up to 32.8m new ordinary shares, representing up to 9.99% of BTG's existing issued ordinary share capital.

Advertisement - Article continues below

Shareholders will be required to vote on the purchase, with two major stake holders having already stated their intention to vote in favour of the acquisition in respect of 134.1m shares, representing approximately 40.9% of the issued share capital.

Targeted Therapies is a high-growth, profitable business that is focused on utilising a product known as Therasphere for targeted interventional treatment of liver cancer.

Louise Makin, Chief Executive Officer of BTG, said: "This is an exciting opportunity to build on our existing interventional oncology business and to create a commercial and scientific leader in the sector.

"We believe that the combination will be highly beneficial to both patients and physicians as it brings together expertise that will be applied to the development and use of loco-regional therapies for liver cancer."

EKOS will be purchased on a debt free, cash free, basis for an initial cash consideration of around £120m in addition to as much as £27m in future milestone payments.

Advertisement - Article continues below

EKOS, which is headquartered near Seattle in the US, owns, manufactures and distributes the EkoSonic Endovascular System, a differentiated interventional product used in the treatment of severe blood clots. EkoSonic is cleared for use in the US and EU.

The transaction in line with BTG's strategy of growing its interventional medicine business, as it has significant addressable market opportunity in a growing treatment area and its differentiated technology is protected by granted patents through to 2022, with additional filings to 2030.

Makin added: "There is increasing recognition of the benefits of interventional treatment of severe blood clots. EKOS is a fast-growing and profitable business, and the acquisition provides an exciting opportunity to build on our existing interventional medicine business and to enter an area with a significant addressable market opportunity.

"Furthermore, we see significant revenue benefits from the shared customer base both with our existing interventional medicine and specialty pharmaceuticals field forces and with our planned Varisolve field force."

BTG's share price fell 2.84% to 328.80p by 09:10 Thursday.

NR

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

OBR: UK house prices could fall by 12% next year
House prices

OBR: UK house prices could fall by 12% next year

The Office for Budget Responsibility says UK house prices could fall by as much as 12% next year. John Stepek looks at how likely that is.
14 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020