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Pharma & Biotech

BTG snaps up medical device maker Novate for up to US$150mln

Novate has developed Sentry, a vascular device designed to manage blood clots, which was recently deemed safe and effective by US regulators

Specialist healthcare company BTG PLC (LON:BTG) has acquired medical device maker Novate Medical in a deal which could be worth up to US$150mln.

Novate has developed Sentry, a vascular device designed to manage blood clots, which was recently deemed safe and effective by US regulators.

READ: Advisory committee tells US regulators to reject BTG’s Elevair emphysema treatment

BTG plans to launch the device in the US in the second half of its financial year and will sell it through its existing vascular sales force.

“This bolt-on acquisition further enhances BTG's strength in the vascular space," said BTG chief executive Louise Makin.

“Novate's unique IVC filter (Sentry) offers our existing customers a highly complementary product in the management of PE.”

BTG has paid US$20mln upfront for Novate, although it may have to pay another US$130mln further down the line if certain milestones are met.

The transaction is expected to be accretive to adjusted EPS from the second full year of ownership.

BTG shares fell 1.7% to 553.5p in early deals on Friday.

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