UK's BTG buys PneumRx for up to $475 million

Dutch venture capital firm Forbion Capital Partners has sold its portfolio company PneumRx to UK health care company BTG (LSE: BTG) for an initial cash consideration of $230 million and up to $245 million in performance-related future milestone payments, valuing the transaction as up to $475 million.

PneumRx, a growing interventional pulmonology business headquartered in Mountain View, California, USA, owns, manufactures and distributes the RePneu Coil System, a minimally invasive treatment for advanced emphysema. RePneu’s product aims to enhance patients’ quality of life by improving lung function and exercise capacity. RePneu is sold in 11 European Union countries including Germany, Switzerland, Italy and Spain, and has a fully recruited US pivotal clinical trial currently underway. US approval is anticipated during 2016. Closing of the acquisition is conditional on Hart-Scott Rodino approval in the US which is expected to be received in early January 2015.

Provides access to a third potentially high-growth area of interventional medicine

Commenting on the deal, Louise Makin, BTG’s chief executive, said: “PneumRx brings a differentiated, clinically proven product that can make a real difference to the lives of people with advanced emphysema, for which there are limited current treatment options. It also gives us access to a third potentially high-growth area of interventional medicine, interventional pulmonology. With an annual sales potential of over $250 million, PneumRx is a significant addition to BTG that enhances our portfolio and leadership in Interventional Medicine.”

“PneumRx has been able to establish the RePneu Coil System as the leading product for minimally invasive treatment of patients suffering from late stage Emphysema,” commented Martien van Osch, managing partner at Forbion, who has served on the board of directors of PneumRx. “We helped the company to establish its European presence and are proud that PneumRx now has a thriving European sales, marketing and clinical operation with 27 employees and rapidly expanding,” he added.