NOVATE MEDICAL, A Galway medical device maker, has been acquired by a British healthcare firm for up to $150 million.
London-based BTG will pay an initial $20 million, with the rest of the funds contingent on the firm reaching sales and other targets.
Novate manufactures inferior vena cava (IVC) filter devices for the prevention of pulmonary embolisms. The filter prevents blood clots in the lungs but disintegrates inside the body, which means it doesn’t need to be removed.
Its flagship device, Sentry, has been granted approval for marketing in the US by the Federal Drug Administration. It recently completed a year-long trial to determine if it was fit for use.
BTG said in a statement that it will launch Sentry in the US market by early next year. The British company’s existing sales team will be responsible for selling the product.
The company’s chief executive, Louise Makin, said the deal was a “bolt-on acquisition”, through which Novate’s devices would help improve BTG’s offerings. The firm has acquired a number of smaller medical devices firms over the years.
“Novate’s unique IVC filter offers our existing customers a highly complementary product in the management of PE (pulmonary embolism),” she said.
Novate had previously raised €12.7 million since it was founded in 2006 by Charles Taylor and Paul Gilson. Its backers included Act Venture Capital and Enterprise Ireland.
Novate said in a statement that it incurred operating losses of €2 million in the year ended December 2017. In November 2017, BTG, which is listed on the London Stock Exchange, reported half-year revenues of £341 million.