BTG (LSE: BTG) has expanded its pulmonary embolism (PE) business by acquiring Novate Medical Ltd., a startup focused on the prevention of PE in patients at high risk of venous thromboembolic events.
Founded in 2006, Novate (Galway, Ireland) develops inferior vena cava (IVC) filters to reduce the likelihood of pulmonary embolism in high-risk clinical situations. Its Sentry device is the first bioconvertible IVC filter and recently won 510(k) clearance from the FDA. Sentry’s 12-month clinical trial data demonstrated no new symptomatic PE and no evidence of device migration, tilt, fracture, perforation or embolization, complications that have been associated with some other IVC filters. The unique bioconversion feature eliminates the need for an additional interventional procedure to retrieve the device.
London-based BTG plans to launch Sentry in the U.S. in the second half of fiscal year 2018-2019 and will sell the device through its existing vascular sales force.
“This bolt-on acquisition further enhances BTG’s strength in the vascular space,” said BTG CEO Louise Makin in a prepared statement. “Novate’s unique IVC filter offers our existing customers a highly complementary product in the management of PE.”
BTG paid $20 million in cash to acquire Novate and may be required to pay additional cash considerations up to $130 million if certain commercial and sales-related milestones are met. The company expects the transaction to be accretive to adjusted earnings per share from the second full year of ownership. Novate had gross assets of $4.3 million on Dec. 31, 2017, and incurred operating losses of $2.4 million for the fiscal year.
BTG is a global healthcare company focused on interventional medicine for the treatment of cancer, vascular conditions and severe emphysema. In June, the company announced that it has forged a strategic partnership with the PERT (Pulmonary Embolism Response Team) Consortium to advance research of pulmonary embolism treatment while promoting the implementation of PERT programs across the U.S. Through the partnership, BTG said it hopes to improve patient care and reduce in-hospital mortality that is associated with pulmonary embolism.
In 2017, the FDA granted 510(k) clearance to BTG’s EKOS Control Unit 4.0. The EKOS system includes an ultrasonic device that uses acoustic pulses to quickly and safely dissolve blood clots and restore blood flow in patients with PE, deep vein thrombosis and peripheral arterial occlusions.