The Medical House clears debts with deal

YORKSHIRE-BASED drug delivery group The Medical House today announced the sale of assets of its loss-making orthopaedic business Eurocut for £500,000 which allows it to clear all of its bank debt.

The Sheffield group, which specialises in needle-free injection kits and which received a takeover approach from an undisclosed suitor last month, said that following Eurocut’s sale to Semes in December, it has sold the assets of the business to Sandvik Medical Solutions allowing it to be “cash neutral”.

The deal has also seen The Medical House agreeing to withdraw from any involvement in the orthopaedic market for a certain period.

Ian Townsend, chairman of The Medical House, said: “‘We are delighted that this transaction leaves TMH in a stronger financial position. Although we could have hoped to receive more, we believe that in the current climate it is prudent to take a lesser sum now rather than speculate that a higher amount may be received later.

“This allows us to concentrate all our resources on our various drug delivery projects and opportunities and we look to the future with confidence.”

The group gave no further update today on the takeover approach.

Last year The Medical House signed a £34m six-year deal with an unnamed global pharmaceutical company to provide an auto injector.

The details of the deal will be announced closer to the launch in about 12 months as the pharmaceutical company does not want to alert its rivals to the new drug.

And earlier this year The Medical House received clearance to place one of its products in the US market.