Nordion to sell Targeted Therapies business to BTG for $200 million

Canada’s Nordion (TSX: NDN), a provider of products and services for the prevention, diagnosis and treatment of disease, has entered into an agreement to divest its Targeted Therapies business to UK-based BTG (LSE: BTG) for a cash purchase price of $200 million. Net of cash taxes and transaction costs, Nordion expects to realize around $185 million on closing. The transaction is anticipated to be completed by the end of June 2013.

Nordion manufactures and commercializes TheraSphere, a targeted liver cancer therapy that consists of millions of small glass beads containing radioactive yttrium-90 and the sole product in its Targeted Therapies business. The firm’s first-quarter 2013 Targeted Therapies division grew by 9% year-over-year, generating revenues of C$12 million and C$48.5 million for the whole of last year.

Under the terms of theaccord, BTG is expected to acquire TheraSphere and Nordion has agreed to continue producing TheraSphere under a manufacturing and support agreement with a contract term of three years, plus a two-year extension at BTG’s option. About 40 Nordion employees are expected to join BTG following the completion of this transaction, which is subject to customary closing conditions and approval by BTG shareholders.