BTG swoops on Biocompatibles

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The Independent Online

BTG unveiled plans to expand in the growing market for cancer drugs yesterday, agreeing to buy its smaller pharmaceuticals rival Biocompatibles in a £156m cash and shares deal.

The news triggered a sharp decline in BTG's shares, which fell almost 8 per cent to 231.6p on fears that it might be overpaying, with some analysts suggesting that a price of more than four times Biocompatibles' 2010 earnings was "expensive".

BTG, which acquired the biotech firm Protherics in a £218m deal two years ago, has been on the lookout for high-growth and high-margin products to expand its portfolio. It said Biocompatibles, which targets treatments to a specific parts of the body, and specialises in tackling liver cancer, fitted its portfolio neatly.

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