Endoscopy: BTG Acquires Specialist US Manufacturer Ekos
UK manufacturer of products for critical care, cancer and varicose veins BTG has agreed to acquire US-based Ekos, a manufacturer of endovascular systems used to treat clots using ultrasonic energy. The deal is a on debt-free cash-free basis for an initial cash consideration of approximately US$180 mn (£120 mn) and up to US$40 mn in future milestone payments.
Ekos is headquartered near Seattle, WA, USA. It owns, manufactures and distributes the EkoSonic endovascular system (EkoSonic), a differentiated interventional product using a locoregional approach in the treatment of severe blood clots. EkoSonic is cleared for use in the USA and EU.
The rationale for the acquisition of Ekos and the EkoSonic product is:
- Complementary transaction in line with BTG's strategy of growing its interventional medicine business;
- Significant addressable market opportunity in a growing treatment area;
- Differentiated technology protected by granted patents through 2022 with additional filings to 2030 and extensive manufacturing know-how;
- Potential revenue benefits from a shared customer base with BTG's interventional medicine and specialty pharmaceuticals field forces;
- Enhancement of the planned Varisolve (PEM) vein clinic field force by accessing in-hospital interventional physicians and vascular surgeons who carry out varicose vein procedures through Ekos's existing sales force;
- Attractive financial impact with an estimated ROI in line with BTG's target for this type of acquisition of 15% to 20% in year five.
Louise Makin, CEO of BTG, said: "There is increasing recognition of the benefits of interventional treatment of severe blood clots. Ekos is a fast-growing and profitable business, and the acquisition provides an exciting opportunity to build on our existing interventional medicine business and to enter an area with a significant addressable market opportunity. Furthermore, we see significant revenue benefits from the shared customer base both with our existing interventional medicine and specialty pharmaceuticals field forces and with our planned Varisolve field force."
Market opportunity for the interventional treatment of severe blood clots
According to BTG, there are approximately 500,000 cases of deep vein thrombosis (DVT), pulmonary embolism (PE) and peripheral arterial occlusion (PAO) in the US each year. The current standard treatment is systemic anticoagulation therapy, which prevents additional clots but does not reduce the existing clot burden.
Each year in the US, there are an estimated 60,000 deaths resulting from DVT and PE and a significant burden placed on the healthcare system through serious medical consequences related to these conditions, such as post thrombotic syndrome for DVT and chronic pulmonary hypertension in patients who have experienced 'sub-massive' PEs.
Of the 500,000 total cases, approximately 150,000 cases are considered to be severe. There is a growing trend to use interventional measures for more aggressive treatment of these severe cases, for which Ekos is well positioned. The total US market opportunity for locoregional treatment of blood clots is estimated to be approximately US$500 mn. BTG believes that Ekos has potential to have revenues of over US$100 mn.