BTG announced on 23 May 2013 that it has entered into an agreement to buy EKOS Corporation (EKOS), a “fast growing and profitable interventional vascular business” on a debt free cash free basis for an initial cash consideration of approximately US$180 million (£120 million) and up to US$40 million (£27 million) in future milestone payments.
EKOS is headquartered near Seattle, USA. It owns, manufactures and distributes the EkoSonic Endovascular System (EkoSonic), a differentiated interventional product using a locoregional approach in the treatment of severe blood clots. EkoSonic is cleared for use in the USA and EU.
According to BTG, the rationale for the acquisition of EKOS and the EkoSonic product was:
- Complementary transaction in line with BTG’s strategy of growing its interventional medicine business;
- Significant addressable market opportunity in a growing treatment area;
- Differentiated technology protected by granted patents through 2022 with additional filings to 2030 and extensive manufacturing know-how;
- Potential revenue benefits from a shared customer base with BTG’s Interventional Medicine and Specialty Pharmaceuticals field forces;
- Enhancement of the planned Varisolve (PEM) vein clinic field force by accessing in-hospital interventional physicians and vascular surgeons who carry out varicose vein procedures through EKOS’s existing sales force;
- Attractive financial impact with an estimated ROI in line with BTG’s target for this type of acquisition of 15% to 20% in year five.
Louise Makin, CEO of BTG, said: “There is increasing recognition of the benefits of interventional treatment of severe blood clots. EKOS is a fast-growing and profitable business, and the acquisition provides an exciting opportunity to build on our existing interventional medicine business and to enter an area with a significant addressable market opportunity. Furthermore, we see significant revenue benefits from the shared customer base both with our existing interventional medicine and specialty pharmaceuticals field forces and with our planned Varisolve field force.”