Boston Scientific Corporation (NYSE:BSX) Signs Agreement To Sell Its BTG Specialty Pharmaceutical Business

Boston Scientific Corporation (NYSE:BSX) has announced the signing of a definitive agreement with European specialty pharmaceutical group, SERB’s affiliates SERB SAS and Stark International Lux S.A.R.L. The agreement is for the sale of Boston Scientific’s BTG Speciality Pharmaceuticals unit for $800 million. Charterhouse Capital Partners-backed SERB owns a diversified prescription medicines portfolio focused on life-threatening and rare diseases.

BTG franchises to generated $210 million this year

Anthony Higham the president of BTG Specialty Pharmaceuticals said that the transaction will help the company to improve its potential as an integrated specialty pharmaceutical platform. He added that he believes BTG’s portfolio and capabilities strongly complement SERB’s. Higham added that they are looking forward to the next phases they continue to positively impact patient’s lives and people that care for them.

It is important to note the BTG Specialty Pharmaceuticals focuses on the development, manufacture, and commercialization of life-saving antidotes vital in emergency care settings and hospitals. Some of the products include clinically proven DIgiFab®, Voraxaze®, and CroFab®. Notably, the three franchises will generate revenue of around $210 million for the full year 2020.

Boston Scientific sold two portions of BTG Specialty Pharmaceuticals for $1 billion

Boston Scientific’s Executive VP, Jeff Mirviss said that following BTG’s acquisition in 2019 for $3.7 billion in cash and after the closure of the current transaction they will have divested two non-medical device portions of BTG for over $1 billion in net proceeds. In Q4 2019 the company divested the Pharmaceutical licensing royalties and it is now divesting the Specialty Pharmaceuticals business. Jeff said that they are pleased with the core Intervention Medicines business’s performance which was the primary diver of BTG’s acquisition. He added that the division has continued to deliver strong growth and it is likely to exceed Boston Scientific’s original target or around $175 million in synergies.

According to the terms of the latest transaction, it will include the transfer of five facilities and around 280 employees worldwide. The company expects to close the transaction in the first half of next year subject to regulatory and customary approvals and closing conditions.