BTG sells brachytherapy business to Eckert & Ziegler

17th Sep 2013 07:36

Healthcare company BTG is selling its brachytherapy business to Germany's Eckert & Ziegler Group after receiving a warning letter from the Food and Drug Administration (FDA).In May the firm stopped the manufacture and distribution of the brachytherapy products following a letter from the FDA which cited concerns relating to process validations, data analysis, complaint investigations and environmental controls at the facility. BTG, which bought the business in January 2011 when it acquired Biocompatibles International, is now selling the unit to Eckert & Ziegler for $5m. Eckert & Ziegler will be responsible for addressing the issues cited by the FDA but BTG said significant progress has already been made in identifying and implementing remedial actions. BTG's brachytherapy assets, including the products, associated intellectual property and the facility in Oxford, Connecticut, US, will transfer to Eckert & Ziegler which is based in Berlin."We are very pleased to reach this agreement with Eckert & Ziegler," said Chief Executive Louise Makin."The prostate brachytherapy market has not been core to BTG's business, but we believe our leading brachytherapy products and dedicated employees will fit very well as part of the Eckert & Ziegler Group."In the financial year to end of March, the brachytherapy business generated £7.3m of the group's £233.7m revenues and contributed less than £1m of the group's underlying operating profit (excluding acquisition adjustments and reorganisation costs) of £69m.RD