BTG agrees to acquire PneumRx for £147m

Healthcare group BTG has entered an agreement to acquire California-based PneumRx for £147m.

The company said the purchase will be partly funded by a placing of new ordinary shares to raise approximately £150m, which represents 5% of the group’s market capitalisation based on Wednesday’s closing price.

"PneumRx gives us access to a third potentially high-growth area of interventional medicine, interventional pulmonology,” said group chief executive Louise Makin.

“With an annual sales potential of over $250m, PneumRx is a significant addition to BTG that enhances our portfolio and leadership in Interventional Medicine."

In 2013, PneumRx reported revenues of $16m, a gross profit of $14m and generated a loss before tax of $4m. As of 31 December 2013, the gross assets of PneumRx were $22m and revenue for 2014 is expected to be approximately $25m.

BTG said the sum payable to PneumRx could rise to £156m based on performances.