April 2, 2015BTG plc: close period update
London, UK, 02 April 2015
BTG plc (LSE:BTG), the specialist healthcare company, provides the following update for the year ended 31 March 2015 ahead of the publication of its Final Results on 19 May 2015.
Guidance
BTG has had another good year and we expect revenue for the year ended 31 March 2015 to be slightly higher than our guidance range of £345m to £360m, including revenues from the PneumRx acquisition since completion on 7 January 2015.
Acquisition-related accounting adjustments and costs of approximately £8m, together with the previously reported one-off costs of approximately £8m relating to the settlement of the CroFab® litigation, which secured exclusivity to October 2018, are expected to result in total exceptional costs for the year of approximately £16m.
For the current financial year that commenced on 1 April 2015, we expect Group revenue to grow strongly and to be in the range £410m to £440m, based on constant currency (the average £/$ exchange rate for 2014/15 was £1/$1.61).
Interventional Medicine
The controlled launch of Varithena® (polidocanol injectable foam), the varicose veins treatment, is continuing in the US reimbursed sector. Following the first commercial treatments in August 2014, more than 300 physicians have now completed the required online training, with over 140 of these having treated patients and another 60 in the process of scheduling patients for treatment. Physician and patient feedback has been very encouraging.
A key focus of our activities is to ensure that appropriate reimbursement is achieved. To date, Varithena® has secured both favourable coverage policies and appropriate payment of claims from payers who provide insurance for approximately 47 million people in the US. We will continue to provide reimbursement support for patients treated with Varithena® as we focus on expanding insurance coverage. Revenue for the year ended 31 March 2015 of low single digit US dollar millions is expected to grow in the current financial year to between $15m and $25m; we anticipate strong revenue growth in our 2016/17 financial year when we expect that Varithena® will be a key treatment option for vein clinicians and that insurance coverage will be broad.
A strong performance by EKOS has resulted from continued growth in US hospitals using its blood clot treatment products, the clearance for use in treating pulmonary embolisms in the US, and ex-US expansion.
Our Interventional Oncology franchise has seen good overall growth, with TheraSphere®continuing to benefit from being sold by the expanded US sales force alongside LC Bead®. We are following a similar strategy in the EU for these liver cancer treatments: the expanded TheraSphere® sales force has also started selling DC Bead® and Bead Block® directly this month.
In January 2015 we completed the acquisition of PneumRx Inc, adding an Interventional Pulmonology business to our Interventional Medicine portfolio. Integration activities are on track and we are pleased with progress. PneumRx’s RePneu® Coil is a fast-growing product used for treating advanced emphysema. Approved in the EU, RePneu® is the subject of a fully recruited pivotal trial in the US that could lead to approval in 2016.
Specialty Pharmaceuticals
Specialty Pharmaceuticals has delivered a good performance, in excess of the mid-to-high single digit annual increase we guided to. This reflects a steady performance from the snake bite treatment CroFab®, strong growth in the digoxin toxicity treatment DigiFab® and the continued growth of the treatment for high-dose methotrexate toxicity Voraxaze® as product awareness continues to rise.
Licensing
Higher Licensing revenues continue to be driven by the growth in royalties from Johnson & Johnson’s treatment for advanced prostate cancer, Zytiga® (abiraterone acetate).
Louise Makin, CEO of BTG, commented: “We have once again made significant progress during the year, investing in multiple growth opportunities and executing our strategy to become a world leader in Interventional Medicine. Varithena® is generating a positive response from our customers and their patients and is gaining wider insurance coverage and appropriate reimbursement, reinforcing our confidence in the significant commercial potential of the product. We have enhanced our Interventional Oncology franchise with the enlarged direct sales force in Europe, and we have started to address the exciting opportunities we see in Asian markets. The acquisition of PnuemRx adds a new area of Interventional Medicine where BTG can develop a leading position. The business is well supported by the financial underpin we receive from our Specialty Pharmaceutical and Licensing segments, and overall we are in a good position to deliver our organic growth plans and achieve our 2021 vision.”
For further information contact:
BTG
Andy Burrows, VP Corporate & Investor Relations
+44 (0)20 7575 1741; Mobile: +44 (0)7990 530 605
Stuart Hunt, Investor Relations Manager
+44 (0)20 7575 1582; Mobile: +44 (0)7815 778 536
FTI Consulting
Ben Atwell / Simon Conway
+44 (0)20 3727 1000
About BTG
BTG is a growing international specialist healthcare company bringing to market innovative products in specialist areas of medicine to better serve doctors and their patients. We have a portfolio of Interventional Medicine products to advance the treatment of liver tumours, severe blood clots, varicose veins and advanced emphysema, and Specialty Pharmaceuticals that help patients overexposed to certain medications or toxins. Inspired by patient and physician needs, BTG is investing to expand its portfolio to address some of today’s most complex healthcare challenges. To learn more about BTG, please visit: www.btgplc.com.