Biocompatibles International: From Stents to Drug-Eluting Beads

Strategic Insights -

Biocompatibles International is a medical devices company that has undergone significant transformations since its founding in 1984. The company was instrumental in developing stents coated with phosphorylcholine, a substance critical for biocompatibility. After selling its stents business to Abbott Laboratories in 2002, Biocompatibles shifted its focus to developing new products, including drug-eluting beads. Today, the company is working on N-fil technology, aiming to provide medical device companies with biocompatible polymers for localized drug delivery. Biocompatibles earns a 6% royalty from Abbott's Dexamet stent and expects to benefit from royalties from Medtronic's drug-eluting stent trial. The company has also partnered with Terumo of Japan to distribute its bead block embolic agent.

Key Takeaways:

  • Biocompatibles International was founded in 1984 by Professor Dennis Chapman, who discovered phosphorylcholine as a natural material responsible for biocompatibility.
  • The company developed stents coated with phosphorylcholine, which were sold to Abbott Laboratories in 2002 for a controversial price.
  • After the sale, Biocompatibles returned a substantial amount of cash to shareholders and shifted its focus to developing new products, including N-fil technology.
  • N-fil technology involves drug-eluting beads used for treating malignant and benign tumors during embolization and chemo-embolization procedures.
  • Biocompatibles has partnered with Terumo of Japan to distribute its bead block embolic agent and has begun a clinical trial for a drug-releasing bead agent to treat liver cancer.
  • The company's chief executive is Crispin Simon, who joined in 1998, and the chairman is Sir Richard Needham, a former Conservative MP.
  • Biocompatibles' last reported annual results involved an exceptional credit of £48.7m due to the sale of the stents business, with a further £22m released to shareholders last year.

Statistics:

  • Biocompatibles International was founded in 1984.
  • The company sold its stents business to Abbott Laboratories in 2002 for an undisclosed price.
  • Biocompatibles earns a 6% royalty from Abbott's Dexamet stent.
  • The company has partnered with Terumo of Japan to distribute its bead block embolic agent.
  • Biocompatibles has begun a clinical trial for a drug-releasing bead agent to treat liver cancer.
  • The company's last reported annual results showed a £16.3m profit on turnover of just £1.3m.
  • Biocompatibles has an exceptional credit of £48.7m due to the sale of the stents business.

Sources:

  • "Biocompatibles International is a medical devices company that is probably best known for its stents business."
  • "On the back of his discovery, Prof Chapman founded Biocompatibles in 1984 and the company floated on the stock market in 1995."
  • "However, Biocompatibles sold its stents business to Abbott Laboratories in 2002 and the company then returned a large amount of cash to shareholders."
  • "The company's chief executive is Crispin Simon, who joined the group in 1998, having previously worked at Smith Nephew and Bowater."
  • "Biocompatibles' last reported annual results benefited from a Pounds 48.7m exceptional credit, deriving from the sales of the stents business."
  • "The chairman said that the board is pleased with the progress that has been made since last September's acquisition to the rights for N-fil technology."