BTG buys Galil Medical for inital £58.3

Specialist healthcare company BTG said it was buying Galil Medical, a leading provider of cryoablation products for the treatment and palliative care of kidney and other cancers, for an initial £58.3m.

BTG said it would also pay up to £17.6m in future regulatory and commercial milestone payments up December 31, 2018. The acquisition will be funded from existing cash resources.

It added that it expects Galil Medical to be profitable and the transaction to be earnings accretive in the first full year of ownership.

Galil Medical sells in the US through distributors and its own specialist sales force, and through distributors outside the US. Global revenues were approximately $22m in 2015, of which US revenues were approximately $15m.

It owns, manufactures and sells a portfolio of cryoablation systems and needles. The systems use compressed argon gas to produce extremely low temperatures; as the gas passes through the needle, the tip of the needle is cooled, forming an ice ball.

The ice ball engulfs the tumour and destroys the tissue. A variety of needle types are available to produce a freeze zone that matches the tumour size and shape, so that adjacent tissue is not damaged, BTG said in a statement.

In the US, Galil Medical's products are indicated for the treatment and palliative care of kidney and other cancers, in addition to a number of other uses, including in urology. Galil Medical is also conducting two clinical studies, both nearing completion, that could lead to US regulatory clearance for use in lung metastases and bone metastases.

BTG Ceo Louise Makin said the acquisition “builds on our leadership in interventional oncology, expanding our portfolio of minimally invasive therapies with the leading technology in the cryoablation of kidney cancer”.

“It also offers significant pipeline opportunities, including lung and bone metastases if regulatory approvals are granted. In addition to enhancing our offering to interventional radiologists, Galil Medical provides access to other specialist physicians that may in future include pulmonary specialists, complementing our existing PneumRx and EKOS businesses,” she said.