UK's BTG sells brachytherapy business for $5million

UK-based specialty pharma company BTG (LSE: BTG) has sold its brachytherapy business to German company Eckert & Ziegler Group (EUZ: Xetra) for $5 million.

Under the terms of the agreement, all of BTG’s brachytherapy assets, including the products, associated intellectual property and its US facility, will transfer to Eckert & Ziegler on completion, which is anticipated in around 30 days. BTG will also receive a 30% share of revenues from the products that are transferring for a period of 12 months, commencing either with the start of production by Eckert & Ziegler or on January 2014, whichever is first.

Louise Makin, chief executive of BTG, said: “We are very pleased to reach this agreement with Eckert & Ziegler. 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.”