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BTG plc: Acquisition of Protez Pharmaceuticals by Novartis
BTG to receive approximately $5 million in respect of its shareholding in Protez upon close of transaction with further potential payments
09 Jun 2008 -
BTG plc noted an announcement by Novartis that is to acquire Protez Pharmaceuticals, a company focused on the discovery and development of novel antibiotics that was founded in 2003 by BTG alongside Protez management members Chris Cashman, Dr Klauss Esser and Dr Luigi Xerri.
Novartis is acquiring the entire share capital of Protez for an initial payment of $100 million, with potential for up to $300 million of additional payments contingent upon the success of PZ-601, a broad-spectrum antibiotic currently in phase II development for potentially fatal drug-resistant infections such as MRSA.
Upon the transaction closing, BTG will receive approximately $5 million, being its share of the initial $100 million, and will receive further sums of up to $15m being 5% of the additional contingent consideration of $300 million payable should PZ-601 achieve certain development and commercialisation targets. The closing is subject to customary conditions for a transaction of this type.
Louise Makin, BTG's chief executive officer, commented: "We are delighted with the progress made by Protez and are confident that as part of Novartis its programmes will play a major role in the field of infectious diseases. It is also pleasing to see this investment deliver such a good return to BTG."
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