Theragenics ($TGX) has signed an agreement to get its brachytherapy seeds into Europe, an effort to expand its market share as the company considers a buyout worth up to $71.4 million.
Under the agreement, Accelyon will distribute Theragenics' AgX100 seeds in the EU, Australia and New Zealand, packaging them in needles, custom strands and other configurations. The three-year deal will generate about $1 million in annual revenue, the company said, growing Theragenics' presence overseas.
"We have expected our AgX100 iodine seed to provide opportunities outside of the United States," CEO Christine Jacobs said in a statement. "Accelyon provides us this access in these important brachytherapy markets. They have international expertise and reach we do not possess."
Meanwhile, Theragenics is being courted by private equity outfit Juniper, considering a buyout worth between $69.9 million and $71.4 million. The company is in the midst of negotiations, and any agreement will be followed by a 30-day "go shop" period in which it can field other offers.
The company has maintained that its talks with Juniper don't constitute a final decision to sell itself. All the while, Theragenics is struggling with a decline in demand for its surgical products and the revenue pressure of the 2.3% medical device tax. Last quarter, the company posted a net loss of $34,000 as sales dipped 8% to 19.9 million.
Theragenics is paring down its business in hopes of turning its fortunes around, looking to save $3.3 million to $3.6 million per year by shipping much of its vascular access manufacturing to Latin America and shutting down a plant in Garland, TX.
- read the announcement