Eckert & Ziegler acquires American cancer specialist - impact on earnings due to one-time expenses
Eckert & Ziegler is now acquiring the division and hopes to remedy these shortcomings quickly so that it can resume delivery. The management expects to be able to win back customers who have migrated elsewhere as Biocompatibles has developed several innovations that improve the use of implants and has patented these unique solutions. By purchasing the division, Eckert & Ziegler will be able to offer these enhanced solutions to its European customers too. In the medium term, the Eckert & Ziegler Group intends to use Biocompatibles as an American distribution platform for its entire range of tumor irradiation products.
Eckert & Ziegler expects unforeseen additional costs of up to €1.2 million for start-up losses until the American implant business can be resumed. The forecast for fiscal year 2013 has therefore fallen from €2.15 to €1.95 net profit per share, equivalent to the value of the previous year (2012).
"The acquisition is a strategic investment decision and represents a milestone in our company's history despite the one-time expenses for entering the US implant business. The North American market is the largest single market for medical technology and offers excellent growth opportunities. The implants market is valued at some €45 million and the market for tumor radiation equipment at around €70 million. The acquisition offers us potential for synergies in markets, products and technologies that will strengthen our market position. Thanks to our long-standing experience in isotope technology, we are confident that we will be able to introduce FDA-compliant manufacturing processes at the Oxford site quickly and recommence production again soon," said Dr. Edgar Löffler, Managing Director of Eckert & Ziegler BEBIG s.a. and Member of the Executive Board of Eckert & Ziegler AG.
Eckert & Ziegler Strahlen- und Medizintechnik AG
Eckert & Ziegler Group (ISIN DE0005659700) is one of the world's largest providers of isotope technology for radiation therapy and nuclear medicine with 630 employees and annual sales of € 120 million. Eckert & Ziegler BEBIG s.a., an associated company, manufactures brachytherapy products and is a European market leader in the prostate implant segment.