Seneffe, September 17, 2013. Eckert & Ziegler BEBIG concluded an agreement today to acquire the brachytherapy business of Biocompatibles Inc., a subsidiary of BTG plc. The company is based in Oxford, Connecticut (USA). Completion of the acquisition is subject to customary closing conditions and is scheduled to take effect within the next 30 days. The purchase price is approximately $5 million plus a 30% share in sales revenues during the first year.
Biocompatibles specializes primarily in the processing and optimization of prostate implants in the United States and is the fourth largest supplier of seeds with a market share of around 15%. In 2012, Biocompatibles, which has 48 employees, generated worldwide sales of approximately €8 million with the divested business segment.
The acquisition gives Eckert & Ziegler a solid footing for its expansion into the US and also provides a broad distribution network for the entire brachytherapy product portfolio, which comprises of seeds (iodine-125 and palladium-103), tumor radiation equipment and eye applicators. In addition, Eckert & Ziegler will acquire core technologies that should strengthen and secure its market position in the long term. Biocompatibles' coated seeds have clear USPs and a high degree of acceptance in several markets. AnchorSeed® optimizes implant positioning in tissue and VariStrand(TM) reduces treatment time for interstitial brachytherapy through the use of pre-loaded implant needles.
In May 2013, Biocompatibles opted to voluntarily halt production after the US Food and Drug Administration (FDA) established shortcomings in the company's manufacturing processes, data collection, monitoring of the production environment and handling of complaints. The company expects one-time expenses of up to $2 million until the necessary adjustments to documentation and processes have been completed.
"The acquisition is a strategic investment decision and represents another milestone in our company's history despite the one-time expenses for entering the US implant business. The North American market is the largest single market for medical technology and offers excellent growth opportunities. The implants market is valued at some €45 million and the market for tumor radiation equipment at around €70 million. The acquisition offers us potential for synergies in markets, products and technologies that will strengthen our market position. Thanks to our long-standing experience in isotope technology, we are confident that we will be able to introduce FDA-compliant manufacturing processes at the Oxford site quickly and recommence production again soon," said Dr. Edgar Löffler, Managing Director of Eckert & Ziegler BEBIG s.a.
About Biocompatibles, Inc.
Biocompatibles specializes in interventional oncology and is a wholly owned subsidiary of BTG International plc, London. In the brachytherapy segment, the company develops and manufactures miniature prostate implants known as seeds. Its leading products include AnchorSeed®, VariStrand(TM), EchoStrand(TM), AnchorMarker® and SeedLock3(TM). www.biocompatiblesinc.com (http://www.biocompatiblesinc.com)
About Eckert & Ziegler BEBIG
Eckert & Ziegler BEBIG is a European market leader in the brachytherapy sector and employees over 150 people worldwide. The company has been listed on the NYSE Euronext exchange in Brussels since April 2007 (Euronext: EZBG; Reuters: EZBG.BR; Bloomberg: EZBG:BB).
www.bebig.eu (http://www.bebig.eu/)
Kontakt:
Eckert & Ziegler BEBIG
Karolin Riehle, Investor Relations
Claudia Wolf, Marketing
Tel.: +32 (0) 64 520 808
ir@bebig.eu
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Eckert & Ziegler BEBIG via Thomson Reuters ONE
