17th Sep 2013 08:52
LONDON (Alliance News) - BTG PLC Tuesday said it has sold its brachytherapy business to Germany's Eckert & Ziegler for USD5 million plus a 30% share of revenues on all the products that are transferred under the deal for a year after production restarts.
The healthcare company bought the brachytherapy business when it acquired Biocompatibles International in January 2011, but didn't consider it to be a business it wanted to develop and it the business also then ran into trouble in the US, forcing it to stop production.
In May, BTG's Biocompatibles unit voluntarily stopped the manufacture and distribution of the brachytherapy products after the US Food and Drug Administration sent it a warning letter due to concerns the regulator had about its process validations, data analysis, complaint investigations and environmental controls at its production plant.
BTG said it had made significant progress in identifying and implementing remedial actions to address the issues cited by the FDA, but Eckert & Ziegler will now be responsible for completing the work and recommencing manufacture and sale of the products.
BTG will get its 30% share of product revenues for a year after production restarts, or for a year from January, 2014, whichever comes sooner.
The brachytherapy business only contributed GBP7.3 million to BTG's overall revenues of GBP233.7 million in its last financial year, and less than GBP1 million of its GBP69 million underlying operating profit.
Under the deal, all of BTG's brachytherapy assets, including the products, associated intellectual property and the facility in Oxford, Connecticut, will transfer to Berlin-based Eckert & Ziegler.
BTG shares were down 0.1% at 378.7 pence early Tuesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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