Perspective Therapeutics divests brachytherapy business to GT Medical

Perspective Therapeutics agreed to fully divest its brachytherapy business, including its radioactive Cesium-131 seed assets and related business infrastructure, to GT Medical Technologies. The transaction is expected to close in the first quarter of 2024 and is subject to customary closing conditions. Under the terms of the transaction, Isoray Medical, a wholly-owned subsidiary of the Company, agreed to sell, and GT Medical agreed to purchase, the Company’s commercial Cesium-131 brachytherapy division and certain related assets including inventory and intellectual property. The assets to be sold consist primarily of customer and supplier lists, production line equipment, intellectual property associated with the brachytherapy division, computer equipment and software used in the brachytherapy division, and the assignment of the brachytherapy manufacturing facility lease in Richland, WA, along with the assignment of other vendor contracts. The Company will retain most liabilities that exist as of the closing date including environmental, warranty, taxes, accrued payroll and vacation, and accounts payable. The Company will retain all the accounts receivable as of the date of closing. As consideration for the transaction, Perspective will receive an equity interest in GT Medical and will have the right to receive certain cash royalties on net sales of Cesium-131 seeds and GT Medical’s GammaTile therapy utilizing Cesium-131 over the four-year period following the closing of the transaction. The sale strengthens Perspective Therapeutics’ position in the lead Pb-based targeted alpha-particle therapeutic space with all Company resources now dedicated to early discovery, and clinical development of the Company’s melanoma and neuroendocrine tumor clinical programs. GT Medical has been a long-time customer of Perspective Therapeutics as their patented innovation of the GammaTile product contains Cesium-131 radioactive seeds. This Surgically Targeted Radiation Therapy starts radiation immediately after tumor removal to help eradicate residual tumor cells in patients with brain tumors. The acquisition strengthens its position in the market by ensuring access to and control over radioactive seed production. In addition, it expands GT Medical’s customer base to include multiple facilities treating patients with prostate, lung, head & neck, and gynecological tumors.