In potential $475M deal, BTG buying a lung device company

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John George

Matthew Gantz, BTG’s executive vice president for U.S. operations.

John George

Senior Reporter- Philadelphia Business Journal

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In a deal valued at up to $475 million, BTG has agreed to buy PneumRx, a company that has developed a device to help treat patients with emphysema.

Under the terms the agreement, BTG (LSE: BTG) — a London-based health care company that has its U.S. headquarters in Conshohocken, Pa. — will make upfront payments of $230 million to PneumRx. BTG will also pay up to an additional $245 million to the Mountain View, Calif., company based on performance-related milestones.

Once the deal is completed, which is expected to occur early next year, PneumRx will report to Matthew Gantz, BTG's executive vice president for U.S. operations.

The deal will allow BTG to expand its interventional medical product portfolio and enter the pulmonology field.

PneumRx's flagship product is the RePneu Coil, a minimally invasive device developed to improve exercise capacity, lung function, and quality of life for patients with severe emphysema. The device is approved in Europe, where it has been used since 2008. PneumRx intends to seek approval for the device in the United States in late 2015.

The RePneu Coil will join BTG's other interventional medical products, which includes site specific treatments for severe blood clots including pulmonary embolisms, liver tumors and varicose veins.

BTG develops and markets specialty pharmaceutical products that including CroFab, a snake-bite treatment.

John George covers health care, biotech/pharmaceuticals and sports business.