October 03, 2013
BTG plc: Close Period Update
London, UK, 03 October 2013
BTG plc (LSE: BTG), the specialist healthcare company, provides the following update for the six months ended 30 September 2013 ahead of the publication of its Interim Results on 12 November 2013.
- Full-year revenue guidance increased following recent acquisitions
- Integration of acquired businesses progressing as planned
- Varisolve® on track for potential US H1 2014 launch
- Brachytherapy business sold to Eckert & Ziegler
The Group’s financial performance has been in line with the Board’s expectations. Following recent acquisitions, revenue guidance for the full year is being increased from a range of £235m to £245m to £275m to £285m.
Good progress has been made in integrating the Targeted Therapies division of Nordion, Inc. and EKOS Corporation, both acquisitions having completed in July 2013. The combined cost of the acquisitions of approximately $380m was funded from existing cash resources and the proceeds of a placing of 32,208,030 new shares, which raised £106.3m excluding expenses. BTG will also pay up to $40m in future milestones in relation to the EKOS acquisition which will be funded from existing cash resources.
The acquisitions enhance BTG’s Interventional Medicine business with highly complementary products. TheraSphere® is an interventional radiation treatment used for inoperable primary liver cancer and metastatic liver cancer and is complementary to BTG’s chemo-embolising beads, which are also used to treat liver tumours. EKOS is a fast-growing interventional vascular business that produces advanced treatments for severe blood clots. Users are the same groups of physicians who also treat severe varicose veins, providing customer insights and potential cross-selling opportunities between the EKOS sales team and BTG’s planned Varisolve® sales team.
Varisolve® (polidocanol endovenous microfoam (PEM)), an investigational comprehensive treatment for moderate to severe varicose veins, continues to progress through a New Drug Application review in the US following acceptance of the file for full review by the Food and Drug Administration in April 2013. Commercial preparations are continuing ahead of a potential US launch in H1 2014.
In September 2013, BTG announced the sale of its brachytherapy business to Eckert & Ziegler Group, based in Berlin, Germany for a payment of $5m on closing plus a 30% share of revenues from the transferring products for a period of 12 months commencing either with the start of production by Eckert & Ziegler or on January 2014, whichever is first.
Among licensed programmes, Sanofi and its subsidiary Genzyme received European marketing authorisation for Lemtrada™ (alemtuzumab) for the treatment of adult patients with relapsing remitting multiple sclerosis with active disease defined by clinical or imaging features. BTG receives an undisclosed royalty on all sales of Lemtrada™ (alemtuzumab) following any regulatory approval.
Louise Makin, CEO of BTG, commented: “We have made a strong start to the year with a good financial performance across our operating segments. We expanded our portfolio with the acquisitions of TheraSphere® and EKOS and the integration of both businesses is on track. In anticipation of the potential US approval of Varisolve®, we continue to prepare for an H1 2014 launch in the US reimbursed sector. Overall, the business is in great shape and we look forward to continued progress in the second half year.”
For further information please contact:
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/Simon Conway
+44 (0)20 7831 3113
BTG is an international specialist healthcare company that is developing and commercialising products targeting critical care, cancer and varicose veins. The company has diversified revenues from sales of its own marketed products and from royalties on partnered products, and is seeking to acquire new programmes and products to develop and market to specialist physicians.