Eckert & Ziegler to sell US seed business
2015-11-30 / Eckert & Ziegler BEBIG s.a. (EZB), Eckert & Ziegler AG’s medical device division, is to sell its US seed business to the US-based Theragenics Corporation. This was decided by the Supervisory Board during today’s meeting. The transaction is expected to be completed by the end of 2015. The parties have agreed not to disclose the sales price.
EZB acquired the business, which is centered on the refining of prostate cancer implants and on application needles, from the US company Biocompatibles Inc. in 2013. Biocompatibles had voluntarily suspended manufacture and delivery of its products in May 2013 following claims of shortcomings in its documentation of the manufacturing process by the U.S. Food and Drug Administration. Despite EZB rectifying all of the quality deficiencies, it failed to win back the trust of the majority of customers and return to turning a profit on the business. The sale by EZB is part of its restructuring concept, which was determined on the basis of a detailed, strategic review of all business fields. The plan now is to sell the US seed business and switch focus to higher-margin areas.
“We have found the best solution for our company, our customers and our shareholders,” said Dr. Edgar Löffler, member of the Executive Board and head of the Radiation Therapy segment. “We can now concentrate our efforts in the prostate seed business on the European market and consolidate our resources in the US on afterloader business.” This sale marks a major step forward in Eckert & Ziegler BEBIG’s strategy of becoming a profitable specialist in brachytherapy, a gentler form of cancer treatment. The company received a license to sell the latest generation of afterloaders, the SagiNova®, in April 2015. The first devices are expected to be sold before the end of the year.
“This transaction continues our long-standing commitment to prostate brachytherapy and the physicians and patients who depend on it,” stated Frank J. Tarallo, Chief Executive Officer of Theragenics Corporation. “We will be able to provide all EZB U.S. seed customers with the unrivaled service and quality products our customers expect. As the leading manufacturer and supplier in this market, we are confident we can support EZB’s customers in their efforts to deliver the highest quality treatment to their prostate cancer patients.”
About Eckert & Ziegler.
With some 700 employees, Eckert & Ziegler Strahlen- und Medizintechnik AG (ISIN DE0005659700) is one of the world’s largest providers of components based on isotope technology for radiation therapy and nuclear medicine.
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Eckert & Ziegler AG, Karolin Riehle, Investor Relations,
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Tel.: +49 30 94 10 84-138, firstname.lastname@example.org, www.ezag.de