Devicor Medical Products, a parent company of Mammotome, has signed a purchase agreement with Neoprobe to acquire neoprobe Gamma Detection Devices (GDS) portfolio of products.
Devicor provides distribution and marketing services to Neoprobe for the gamma detection systems covered by this agreement.
Financial terms of the agreement include $30m cash at close plus up to an additional $20m in royalties based on revenue milestones.
The acquisition of the neoprobe GDS line comes less than a year after Devicor’s acquisition of Ethicon Endo-Surgery’s (EES) Breast Care business, Mammotome, which sells products designed to help doctors detect and diagnose breast cancer.
The company said GTCR will invest additional equity capital in Devicor to finance a portion of the purchase price of the neoprobe GDS assets.
Neoprobe president and CEO Mark Pykett said this transaction allows it to focus on its expertise, competencies, and resources in the radiopharmaceutical space and, in doing so, become a pharmaceutical company where valuations can be realized for their shareholders.
The sale is subject to approval by Neoprobe’s shareholders and is expected to close shortly after the shareholders’ meeting in August.