LONDON (Alliance News) - BTG PLC on Tuesday swung to a pretax loss for the recently ended financial year due to a large impairment charge relating to PneumRx Coils, used to treat lung disease emphysema.
For the year ended March 31, the healthcare company recorded a pretax loss of GBP70.6 million, compared with pretax profit of GBP31.6 million profit in the comparative year ago period, on a revenue of GBP620.5 million and GBP570.5 million, respectively.
Product sales for the year totaled GBP423.8 million, up 10% from GBP387.3 a year ago. Sales for Interventional Medicine division - which include Oncology products, rose 12% to GBP242.9 million. Pharmaceuticals sales increased 6% to GBP180.9 million.
Impairment charges stood at GBP151.1 million, of which GBP143.2 million related to PneumRx Coils. BTG said that sales of the product were lower than expected last year and it does not expect to see any "material revenues" from the PneumRx Coils over the next two years.
"We are well positioned to continue generating around double-digit product sales growth through the anticipated royalty declines, and to deliver operating leverage over the medium term," Chief Executive Louise Makin said.
For 2019 financial year, the company expects Interventional Oncology and Interventional Vascular sales growth of between 13% to 15%. Pharmaceuticals product sales are predicted to be flat to single digit percentage decline.
Capital expenditure for the current financial year is estimated to be less than GBP20 million and gross margins between 70% and 72%. Margins in 2018 financial year amounted to 70%.
Shares in BTG were down 6.9% at 617.00 pence each.
