Nordion enters into agreement to divest targeted therapies business to BTG
Nordion, 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 BTG, an international specialist healthcare company based in London, for a cash purchase price of $200 million. The transaction is anticipated to be completed by the end of June 2013.
Nordion manufactures and commercializes TheraSphere, a targeted liver cancer therapy, the sole product in its targeted therapies business. BTG will acquire TheraSphere and Nordion has agreed to continue manufacturing TheraSphere under a manufacturing and support agreement with a contract term of three years, plus a two-year extension at BTG's option. Approximately 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.
TheraSphere is a liver cancer therapy that consists of millions of small glass beads (20 to 30 micrometers in diameter) containing radioactive yttrium-90 (Y-90). The product is injected by physicians into the artery of the patient's liver through a catheter, which allows the treatment to be delivered directly to the tumor via blood flow.
"Nordion built TheraSphere into a valuable product over the past decade and has positioned it for future growth and development,” said Steve West, CEO, Nordion. "We also believe this transaction provides value for our shareholders and leaves Nordion with a focused specialty isotopes business. We intend to continue our strategic review process which includes an assessment of potential uses for the cash proceeds from this sale."
The decision to divest targeted therapies was made as part of Nordion's ongoing strategic review with the assistance of the company's financial advisor, Jefferies, as announced on January 28, 2013.