17th Sep 2013 07:38
LONDON (Alliance News) - Specialist healthcare company, BTG plc(BTG.L), Tuesday announced the sale of its brachytherapy business to Berlin-based Eckert & Ziegler Group. Pursuant to the deal, in around 30 days, all of BTG's brachytherapy assets, including the products, associated intellectual property and the facility in Oxford will be transferred to Eckert & Ziegler, for which BTG will receive $5 million.
BTG will also get a 30 percent revenue share from the transferred products for a period of 12 months, starting either with beginning of production by Eckert & Ziegler or on January 2014, whichever is first.
BTG had acquired the business in January 2011, when it bought Biocompatibles International plc. In the year ended March 31, the brachytherapy business generated 7.3 million pounds, and contributed less than 1 million pounds of the group's underlying operating profit. 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 at the facility. Eckert & Ziegler will be responsible for completing the implementation of remedial actions to address the issues cited, and recommence manufacturer and sale of the products.
Copyright RTT News/dpa-AFX
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