SubscribeAcquisition of novel biodegradable bead technology
Biocompatibles, the medical device company focused on the treatment of cancer and cardiovascular disease, is pleased to announce that it has conditionally agreed to acquire CellMed AG, and to provide an update on 2004 trading.
- Acquisition of novel biodegradable bead technology brings three new product programmes – drug eluting bead, tissue transplant bead, cosmetic implant bead.
- Expands Biocompatibles’ cancer product pipeline, adding complementary biodegradable bead technology to the Company’s existing permanent bead products.
- The initial consideration for all the CellMed AG shares, payable on closing, is €5.2 million (£3.5 million). Initial consideration of €3.0 million (£2.0 million) in cash and 573,276 Biocompatibles shares payable on closing. Share consideration equivalent to €2.2 million (£1.5 million) valued at the closing share price on 3rd March 2005.
- Deferred consideration totalling €5.0 million (£3.4 million) payable in 2006. Profit-sharing payments payable on CellMed’s cell-based programmes in each year up to and including 2010 subject to an aggregate maximum of €12.0 million (£8.4 million). The maximum aggregate consideration of €22.2 million (£15.3 million) is payable as to approximately 70% in Biocompatibles’ shares and 30% in cash.
- Group 2004 turnover: £2.6 million (up 23%).
- Net funds at 2004-year end: £45.2 million. Expected 2005 closing net funds of £35 million after Escrow release and Return of Capital.
- Recruitment complete for Biocompatibles PRECISION I (Hong Kong) clinical trial for the treatment of primary liver cancer with the doxorubicin drug-eluting bead.
Commenting on today’s announcement, Crispin Simon, Biocompatibles’ Chief Executive, said: “We are delighted with this acquisition. CellMed brings excellent technology and a number of very promising new products for our pipeline. Our robust financial position gives us the resources to maximise its value.”
Dr Peter Geigle, Chief Executive of CellMed, commented “We are pleased to be joining Biocompatibles. The Company has complementary technology and relevant skills to ours - and an excellent track record of generating shareholder value from its product portfolio.”