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Market: LSE
Sector: Pharmaceuticals
EPIC: BII
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Biocompatibles
www.biocompatibles.com

Biocompatibles International plc is a leading company in the field of drug-device combination products.  The Oncology Products Division conducts the marketing of Biocompatibles’ approved oncology products.  These include products that are used for the treatment of primary liver cancer (HCC), liver metastases from colorectal cancer and prostate cancer.  Our R&D Facilities are engaged in licensing and in new product development for oncology, stroke, and diabetes and obesity.  We have collaborative agreements with AstraZeneca, Bayer Healthcare Pharmaceuticals Inc. and Medtronic Inc.

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Biocompatibles accepts BTG's £177 mln bid

19th Nov 2010, 10:50 am

Bead technology firm Biocompatibles (LON:BII) this morning said it had accepted a bid from drug developer BTG (LON:BGC), which values the company at 430p a share, or £177.2 million in total.

The price being paid is a near 60 per cent premium to the share price just prior to the announcement of takeover talks back in September.

Biocompatibles  said it is recommending the offer because it believes the deal will create a “fast-growing, financially stronger, international specialist healthcare business”.

The deal will be earnings enhancing from year one and create synergies of around £3 million.

However the transaction is more about harnessing the growth potential of Biocompatibles, whose drug delivery beads are used in oncology.

The pair will have cash resources of around £97 million to tap into and a number of other innovations to take into the marketplace.

“In particular, the BTG directors intend to undertake registration trials in respect of Biocompatibles' embolising beads and drug-eluting beads to increase the products' approved indications and the territories in which they can be marketed,” BTG said in a stock exchange statement.

Investors are being offered 1.6733 BTG shares for each Biocompatibles share they own plus 10p in cash. 

Alternatively they can pass on the 10p cash payment and opt instead for contingent value notes up to the value of 47p (56 euros), which are linked to the development of GLP-1 for diabetes and obesity. 

Shareholders accounting for 53.19 per cent of Biocompatibles stock have irrevocably committed to backing the deal, while a further 10.49 per cent have said they intend to back the offer.

The acquisition is being done via a scheme of arrangement, which requires 75 per cent support from investors.


 

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