2013-09-17 07:52:02 -
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
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
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).
Eckert & Ziegler BEBIG
Karolin Riehle, Investor Relations
Claudia Wolf, Marketing
Tel.: +32 (0) 64 520 808
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Source: Eckert & Ziegler BEBIG via Thomson Reuters ONE