BTG plc: CLOSE PERIOD UPDATE
London, UK, 1 April 2005: BTG plc (LSE: BGC), the IP and technology commercialisation company, today enters its close period and provides the following update on trading for the year ended 31 March 2005.
Total revenues for the full year are expected to be approximately £41 million and the loss before tax is anticipated to be approximately £26 million, both in line with the Board’s expectations.
Revenues are expected to comprise:
• gross royalties from sales of launched products some 10% higher (over 20% higher at constant currency) at approximately £30 million
• new licence revenues comparable to last year at approximately £7 million
• combined milestone payments and venture realisations of around £4 million.
Investment in Provensis and Varisolve® development is expected to be just over £10 million, and investment in other technology development is anticipated to be approximately £5 million. Anticipated administrative expenses of approximately £28 million include employment-related restructuring costs of £3 million and a charge relating to the impairment of a lease of around £2 million. Operating costs are estimated to be £7 million, reflecting higher amortisation charges on patents and increased litigation expenditure. Net liquid funds at period end are estimated to be £28 million, which the Board considers sufficient to fund BTG’s ongoing operations as the Group progresses towards profitability.
Recent progress in the life sciences portfolio includes the US launch of COMBUNOX™ (Oxycodone HCl and Ibuprofen) by Forest Laboratories, Inc. BTG has received several milestones from Forest, including $4.5 million following US approval of COMBUNOX™ for the short-term management of acute, moderate to severe pain in November 2004. BTG will also receive future royalties based on Forest’s sales. In addition, BTG has assigned the COLAL® colonic drug delivery patents and know-how to Alizyme plc for a consideration of £1.3 million together with other patents for £75,000 plus royalties on any sales of resulting products.
As announced on 27 January 2005, BTG’s subsidiary Provensis completed the programme of studies aimed at enabling resumption of the US clinical development of Varisolve® as a treatment for varicose veins. Since then, the company has progressed commercial discussions with potential partners and the submission of a complete clinical hold response to the US Food and Drug Administration (FDA). A further announcement will be made following review of the data by the FDA.
BTG is continuing the strategy review announced mid-year and will present the Board’s conclusions, together with full Preliminary Results for the year ended 31 March 2005, on 26 May 2005.
The Preliminary Results statement will be issued at 7:00 am on 26 May 2005, and a presentation to analysts at 9:30 am will be broadcast live via the company’s website http://www.btgplc.com/.
For further information contact:
Andy Burrows, Director of Investor Relations
+44 (0)20 7575 1741
Ben Atwell/Lucy Briggs
+44 (0)20 7831 3113
BTG creates value by investing in intellectual property and technology development, and in early stage ventures. We realise value through technology licensing, patent assertion and sale of equity investment. Through a multidisciplinary approach, we apply intellectual property and commercial expertise, together with specialist skills in science and technology, to create major product opportunities in the health and high tech sectors. BTG has commercialised important innovations, including Magnetic Resonance Imaging, Multilevel Cell Memory, Campath® (alemtuzumab), the first monoclonal antibody treatment for chronic lymphocytic leukaemia, and recombinant Factor IX blood clotting protein. BTG operates through wholly owned subsidiaries BTG International Ltd and BTG International Inc in the UK and USA, respectively. For further information about BTG, please visit www.btgplc.com.