BTG buys US vascular device firm Novate

UK-based BTG has announced it has bought US vascular device company Novate Medical, which is focused on the prevention of pulmonary embolism in patients at high risk of venous thromboembolic events.

BTG produces both drugs and medical devices for diseases such as cancer, vascular, and respiratory conditions, and acquired Novate on the basis of its Sentry, the first bioconvertible inferior vena cava filter, which has been granted regulatory clearance in the US.

The filter is placed in the vena cava to prevent life-threatening blood clots in the lungs.

Sentry’s 12-month clinical trial data demonstrated no new symptomatic pulmonary emboli and no evidence of device migration, tilt, fracture, perforation or embolisation, complications which have been associated with some other inferior vena cava (IVC) filters.

The unique bioconversion feature eliminates the need for an additional interventional procedure to retrieve the device.

BTG paid $20m in cash to acquire Novate and may be required to pay additional cash considerations up to $130m if certain commercial and sales-related milestones are met.

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

“This bolt-on acquisition further enhances BTG’s strength in the vascular space,” said Louise Makin, BTG’s CEO. “Novate’s unique IVC filter offers our existing customers a highly complementary product in the management of PE.”

BTG suffered a setback early last month when the FDA rejected a filing for pre-market approval for its Elevair Endobronchial Coil System for people with severe emphysema.

The decision was not a surprise though, as in June a panel of FDA advisers voted against approving Elevair.

The FDA is not bound to follow the recommendations of its expert advisers, but it usually does.

BTG said at the time it is reviewing its options and will provide an update in due course.