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London, UK, 27 January 2011
BTG plc (LSE: BGC), the specialist healthcare company, today publishes its Interim Management Statement for the period from 1 October 2010 to 27 January 2011.
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:
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:
An update on progress will be provided with BTG’s Final Results for the year, scheduled to be published on 25 May 2011.
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:
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
+44 (0)20 7831 3113
BTG is an international specialist healthcare company that is developing and commercialising products targeting critical care, cancer and other disorders. The company is also seeking to acquire new products to develop and market to hospital specialists, and is building a sustainable business financed by revenues from sales of its critical care products and from royalties and milestone payments on partnered products.
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