BTG Acquires Galil Medical

May 6, 2016—BTG plc announced that it has entered into an agreement to acquire Galil Medical Inc., which owns, manufactures, and sells a portfolio of cryoablation systems and needles. Galil Medical is a private company that employs approximately 100 people globally and is headquartered in Arden Hills, Minnesota. Closure of the transaction is expected before the end of June 2016.

Galil Medical’s systems use compressed argon gas to produce extremely low temperatures; as the gas passes through the needle, the tip of the needle is cooled, forming an ice ball which engulfs the tumor and destroys the tissue. A variety of needle types are available to produce a freeze zone that matches the tumor size and shape so that adjacent tissue is not damaged.

In the United States, Galil Medical’s products are indicated for the treatment and palliative care of kidney and other cancers, in addition to a number of other uses, such as in urology. Galil Medical is also nearing completion on two clinical studies that could lead to United States regulatory clearance for use in lung and bone metastases.

Galil Medical sells products in the United States through distributors and its own sales force of specialists, as well as through distributors outside the United States.

BTG will acquire Galil Medical for an initial cash consideration of $84.5 million and up to $25.5 million in future regulatory and commercial milestone payments in respect to the period up to December 31, 2018.