BTG to buy lung intervention firm for up to $475 mln

Kirloskar Pneumatic

04/12/2014 07:46

LONDON, Dec 4 (Reuters) - BTG  BTG.L , the healthcare group 
best known for treating rattlesnake bites and varicose veins, is 
expanding into lung care by buying a Californian firm that has 
developed a device to prop open airways. 
    The British company said on Thursday it would pay an initial 
$230 million and up to $245 million in performance-related 
future milestone payments to acquire unlisted PneumRx. 
    The U.S. firm's flagship product is the RePneu Coil for 
advanced emphysema, which tethers small airways open to prevent 
their collapse. 
    BTG said the PneumRx business had potential annual sales of 
more than $250 million and was expected to boost earnings from 
the fourth year onwards. The purchase will be funded in part by 
a 150-million-pound ($235 million) placing. 
    (1 U.S. dollar = 0.6380 British pound) 
 
 (Reporting by Ben Hirschler; editing by Jason Neely) 
 ((ben.hirschler@thomsonreuters.com; +44 20 7542 5082; Reuters 
Messaging: ben.hirschler.thomsonreuters.com@reuters.net)) 
 
Keywords: BTG M&A/PNEUMRX