BTG plc: Interim Results for the Six Months Ended 30 September 2006

BTG plc: Interim Results for the Six Months Ended 30 September 2006

BTG plc: Interim Results for the Six Months Ended 30 September 2006

London, UK, 9 November 2006: BTG plc (LSE: BGC), the medical innovations company, today announces its interim results for the six months ended 30 September 2006.

Financial highlights

  • Revenue net of revenue sharing of £12.5m (H1 05/06: £14.1m) includes a 30% increase in underlying net recurring royalties
    • 21% increase in gross royalties
    • Royalties net of revenue sharing up 30% to £12.2m (H1 05/06: £9.4m)
    • Reduction in the average revenue share paid to 40% of gross revenues as a result of income mix (H1 05/06: 44%, FY 05/06: 41%)
    • o One-off income of £0.3m net (H1 05/06: £4.7m including Zimmer settlement of £4.1m)
  • Additional returns generated from £2.3m profits on sale of assets (H1 05/06: £1.6m)
  • Operating & administrative expenses continue to reduce to £9.1m (H1 05/06: £10.7m)
  • Research & development expenses of £4.5m (H1 05/06: £5.5m), reflecting lower Varisolve® expenses of £1.7m (H1 05/06: £2.7m). R&D investment expected to rise in second half
  • Profit before tax of £1.7m (H1 05/06: loss of £1.9m)
  • Cash reserves of £43m compared to "free" cash at 1 April 2006 of £44m
  • Operating highlights

  • Significant progress in value generation from building pipeline
    • Growth in existing revenues, proceeds from physical science deals, simplified structure, cost containment
    • BTG's extensive pipeline now has 4 clinical stage and 4 preclinical stage development programmes, plus 3 programmes at lead identification stage
    • Of 11 licensed programmes, 1 is in Phase III, 8 in Phase II, 1 in Phase I and 1 at lead identification
  • Varisolve® US Phase II safety study on track to treat 1st patient in Q1 07
  • Phase I/II gastric cancer trial of Plevitrexed successfully completed
  • Good results from single dose Phase I study of BGC20-1259, targeting Alzheimer's disease
  • Genzyme report positive 2nd interim results from Phase II trial of Campath® in multiple sclerosis
  • TolerRx plan to start Phase III trial of TRX4 in type 1 diabetes by end of 2006
  • Louise Makin, BTG's Chief Executive Officer, commented:

    "BTG has made continued strong progress in its business during the first half of the financial year. The Company is operating on a firm financial footing, with increasing royalty revenues exceeding reduced operating costs. With this and cash reserves of £43m, BTG is able to accelerate pipeline growth by investing in new programmes, portfolios and platforms and, where appropriate, by developing selected programmes further to retain an increasing share of the value we create.

    We expect the good momentum in BTG's development pipeline and in our licensed pipeline to continue, with a number of significant development milestones anticipated during the second half and through 2007."

    Contacts

    BTG
    Christine Soden
    Chief Financial Officer
    +44 (0)20 7575 1591
    Andy Burrows
    Director of Investor Relations
    +44 (0)20 7575 1741

    Financial Dynamics
    Ben Atwell
    +44 (0)20 7831 3113

    Notes

    BTG's interim results presentation for analysts will take place today at 9.30am at BTG plc, 10 Fleet Place, Limeburner Lane, London EC4M 7SB. This will be followed at 10.15am with a Research & Development update for analysts. Both presentations will be webcast live on www.btgplc.com and will be available by the end of the day as archived presentations.

    About BTG BTG in-licenses, develops and commercialises pharmaceuticals and other medical technologies. With a substantial and growing revenue stream of royalties and milestone payments from out-licensed products, BTG continues to strengthen its pipeline of preclinical and clinical development programmes. Active in the fields of oncology, diseases of ageing, neuroscience, drug repositioning and medical devices, BTG works from its offices in London, Philadelphia and Osaka with a global partner network of healthcare companies and research organisations. For further information, visit: www.btgplc.com

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