London-based BTG will acquire PneumRx, a Mountain View, Calif.-based interventional pulmonology company in a deal worth up to $475 million, based on an initial consideration of $230 million and up to $245 million in performance-related milestone payments. BTG is an international specialist healthcare company active in interventional medicine and specialty pharmaceuticals.
PneumRx's flagship product, the RePneu Coil, is slated to become the cornerstone of BTG's growing interventional pulmonology business. The coil is a minimally invasive device intended to improve exercise capacity, lung function and quality of life for patients with severe emphysema. The implants are designed to compress diseased tissue, increase elastic recoil in the lung and re-tension the diseased airway network, relieving breathlessness and allowing patients to perform more activities of daily living.
The RePneu Coil has a CE Mark and has been used in Europe for the treatment of emphysema since 2008. The 315-subject multicenter RENEW pivotal clinical trial completed enrollment in early Oct., 2014 and the company intends to submit the one-year data to FDA in late 2015 for PMA approval. The merger with BTG will bring additional resources as PneumRx seeks U.S. market approval for the RePneu Coil and develops other key markets worldwide.