BTG plc: Interim Management Statement
Trading during the period has been in line with the Board’s expectations. In October 2010, BTG commenced direct sales and marketing of CroFab® and DigiFab® in the US, having established its own US commercial operations and an Acute Care field force. This is operating well and, as previously guided, the sales force has increased from 10 to 19 personnel.
Other recent progress in BTG’s business includes:
- all three Phase III trials of Varisolve® (polidocanol endovenous microfoam (PEM)) now under way;
- the submission of a New Drug Application by Centocor Ortho Biotech Inc. for abiraterone acetate for the treatment of advanced metastatic prostate cancer;
- initiation by AstraZeneca of a global Phase IIb study of AZD9773 (CytoFab™) in patients with severe sepsis;
- completion of patient recruitment into a Phase IIa study of BGC20-0134 (Pleneva™) in relapsing-remitting multiple sclerosis
- approval to market DigiFab® (digoxin immune fab (ovine)) in Canada; and
- approval of an Orphan Application from the European Medicines Agency for OncoGel™, a sustained release formulation of paclitaxel, for the treatment of carcinoma of the oesophagus.
On 19 November 2010, the Boards of BTG and Biocompatibles International plc announced that they had reached agreement on the terms of a recommended proposal whereby BTG would acquire the entire issued and to be issued share capital of Biocompatibles. Following the passing of necessary resolutions by both sets of shareholders and court approvals, the acquisition is expected to become effective later today, 27 January 2011.
As a result of the acquisition and the addition of revenues from Biocompatibles between 27 January and 31 March 2011, BTG anticipates that its full year recurring revenues will increase by approximately £5m from its previous guidance of £93m-£97m. In addition, BTG has received, or expects to receive, non-recurring revenue of £10m-£12m in the year ending 31 March 2011, deriving principally from a licence audit settlement, a milestone received on the submission of a New Drug Application for abiraterone acetate and the previously announced settlement with Samsung Electronics Co. Ltd in relation to the multi-level cell (MLC) patents. Full year revenues are therefore now anticipated to be in the range £108m-£114m. As previously stated, the MLC settlement is not expected to have a material impact on profitability after deducting revenue sharing and costs.
Cash and cash equivalents at 31 March 2011 are anticipated to increase as a result of the Biocompatibles acquisition, from previous guidance of £45m-£50m, to £68m-£73m, assuming that all Biocompatibles shareholders elect to receive the 10p cash element of the deal consideration (totalling c.£4m) instead of the Contingent Value Notes relating to Biocompatibles’ GLP-1 compound that has been partnered with AstraZeneca.
BTG will immediately commence integration activities in relation to the Biocompatibles acquisition which include as priorities:
- optimising Group commercial operations to drive revenue growth from the enlarged product portfolio;
- focusing investment in the enlarged development pipeline to accelerate growth; and
- achieving cost savings of approximately £3m per annum by reducing duplicated head office and administrative costs.
An update on progress will be provided with BTG’s Final Results for the year, scheduled to be published on 25 May 2011.
Board changes
Dr William Jenkins, who joined the Board of BTG as a non-executive director in 2002, is to retire on 4 February 2011. Dr Melanie Lee CBE was appointed to the Board as a non-executive director in November 2010.
Louise Makin, BTG’s chief executive officer, commented: “Through the acquisition of Biocompatibles we are creating a growing, financially robust, international specialist healthcare business. During the year ahead our focus is to drive growth in our existing commercial business, which will comprise five specialist products, while progressing our development pipeline to build future value.”
For further information contact:
BTG Financial Dynamics Andy Burrows, Director of Investor Relations +44 (0)20 7575 1741; mobile: +44 (0)7990 530605 Rolf Soderstrom, Chief Financial Officer +44 (0)20 7575 0000 Ben Atwell +44 (0)20 7831 3113
About BTG
BTG is an international specialist healthcare company that is developing and commercialising products targeting critical care, cancer and other disorders. The company is seeking to acquire new products to develop and market to specialist physicians, and is building a sustainable business financed by revenues from sales of its own marketed products and from royalties and milestone payments on partnered products. For further information, visit: www.btgplc.com.
Mo Noonan Senior Manager Financial Dynamics Holborn Gate, 26 Southampton Buildings London, WC2A 1PB D +44 (0)20 7269 7116 M +44 (0)7876 444 977
www.fd.com