BTG Share News (BTG)

Revenues and profits were ahead of consensus forecasts for speciality healthcare group BTG for the year to end-March, although guidance for the new financial year may have disappointed some investors. For the year just gone, reported revenue including the impact of acquisitions was 24% higher at £290.5m, with underlying revenue growing 20% to £244.8m, allowing for pre-tax profit to jump 38% to £33.3m. Earnings per share were 36% higher at 6.8p, with cash and equivalents of £38.2m at the period-end.Chief Executive Louise Makin called it a transformational year for BTG.Thanks to the US approval of Varithena injectable foam for varicose veins and the acquisitions of TheraSphere radioactive beads and EKOS ultrasound bloodclot-dissolving technology, Makin said BTG was now "a leader in interventional medicine with vision to build a $1bn-plus business by 2021". This led to an increase in research and development spending by 14.6% to £47.2m, principally from progressing the approval and launch of Varithena, studies and innovation projects associated with its Beads platform, activities to support existing marketed products and new clinical spending on the development of TheraSphere and EKOS products.For the outlook of the new financial year, management's guided towards a revenue range of £330m-£345m, which implies the rate of growth slowing to 14%-19%, in line with consensus. BTG also pointed to considerable investment coming in the year, with commercial activities to support the launch of Varithena in the US and to establish direct sales operations in Europe, initially to support expansion of TheraSphere, as well as a new Asian regulatory and medical hub and satellite commercial offices primarily to support interventional oncology products. Investment in development activities will also be increased, in particular to continue the acceleration of the three Phase III trials of TheraSphere, and to progress a number of innovation programmes and clinical studies associated with its various bead products and with the EKOS products.Makin said: "We have the resources and capabilities to invest in multiple growth opportunities to unlock the full value of our portfolio and pipeline, while in parallel seeking additional acquisition opportunities in both Interventional Medicine and Specialty Pharmaceuticals." Panmure Gordon analyst Savvas Neophytou also pointed out that the company "has a history of upgrading during the year" and so stood by existing forecasts of circa-20% growth for the current year.OH