BTG plc (LON: BTG), the global healthcare company, today announced its Interim Results for the six months ended 30 September 2018.
Louise Makin, CEO of BTG, commented: “I am pleased to report that in the first six months we have delivered 10%1 sales growth with good operating leverage in our Product business and 35%1 adjusted operating profit growth for the Group. The second half of the year has started well. We reiterate our full-year guidance for Interventional Oncology and Vascular sales and upgrade our Pharmaceuticals sales guidance following a good H1 performance and a very strong October for CroFab®.
During the period we have provided further clarity on Varithena®, PneumRx and Zytiga®, launched two new products, acquired Novate Medical and completed several strategic partnerships and pipeline milestones.
In Interventional Oncology, our TheraSphere® EPOCH trial is now fully enrolled. We have progressed several internal programmes and external collaborations designed to build an integrated offering in lung cancer diagnosis and treatment. In our Vascular portfolio, launch activities are underway for Sentry, our new IVC filter.
Our Pharmaceuticals business has delivered good growth in the first half. We expect CroFab® to maintain its market leadership following the introduction of a different antivenin. We are exploring indication expansion and other opportunities to enhance growth in this business.
Our growth strategy is delivering. We remain ambitious to use our strong financial resources to augment this positive organic momentum with further investments and acquisitions to deliver on our vision of being a world leader in Interventional Medicine, transforming patient care and creating significant long-term value for our stakeholders.”
Financial highlights
|
|
|
H1 2018/19 ($m) |
H1 2017/18 ($m) |
Growth (%) |
Growth at CER1 (%) |
|
|
|
|
|
|
|
|
Product sales |
|
340.2 |
310.4 |
10% |
10% |
|
Licensing revenues |
|
155.5 |
131.8 |
18% |
18% |
|
Total revenues |
|
495.7 |
442.2 |
12% |
12% |
|
|
|
|
|
|
|
|
Adjusted operating profit2 |
|
178.5 |
128.1 |
39% |
35% |
|
IFRS operating profit
|
|
97.6 |
21.8 |
348% |
|
|
Adjusted basic EPS2 |
35.9c |
27.3c |
32% |
|
|
|
IFRS basic EPS
|
|
20.0c |
17.8c |
12% |
|
|
Free cash flow2 Net cash flow from operating activities |
37.2 48.7 |
96.0 100.6 |
(61%) (52%) |
|
|
1. Constant Exchange Rate growth is computed by restating 2018/19 results using 2017/18 foreign exchange rates for the relevant period.
2. Certain financial measures in this press release, including adjusted operating profit, adjusted basic EPS and free cash flow are not prepared in accordance with IFRS. All adjusted financial measures are explained on page 24 and are reconciled to the most directly comparable measure prepared in accordance with IFRS on pages 25 to 27.
· Product sales increased 10% at CER to $340.2m, driven by Interventional Oncology and Interventional Vascular.
· Adjusted operating profit grew 35% at CER to $178.5m, demonstrating good operating cost leverage. IFRS operating profit was $97.6m.
· Adjusted basic EPS grew 32% to 35.9c and IFRS basic EPS grew 12% to 20.0c at actual exchange rates.
· Free cash flow of $37.2m was achieved after payment of $73.3m to settle the Wellstat dispute; excluding this payment free cash flow was 15% higher at $110.5m. IFRS cash flow from operating activities was $48.7m.
Operating highlights
Product Business – Interventional Medicine
Oncology
· TheraSphere® EPOCH study fully enrolled; top-line results expected by the end of 2019.
· Compact and user-friendly new ICEfx™ Cryoablation system launched globally.
· Completed investment in and agreed option to acquire Veran Medical Technologies, Inc, which provides electromagnetic navigation systems for lung nodule biopsy to aid early diagnosis and treatment of lung cancer.
· Research collaboration with Edinburgh University to combine characterisation and treatment of lung nodules in a single flexible catheter
Vascular
· Acquisition of Novate Medical Ltd and its Sentry device, the first bioconvertible inferior vena cava (IVC) filter for use in patients at high risk of recurrent pulmonary embolism (PE).
· EKOS® Control Unit 4.0 launched in Europe.
· Strategic partnership formed with PERT Consortium™ to advance the treatment of patients with PE.
· Positive impact on physician adoption of Varithena® following introduction of dedicated reimbursement codes.
PneumRx
· Continuing to review options for PneumRx following non-approvable decision by US Food & Drug Administration (FDA), including partnering or sale.
Product Business – Pharmaceuticals
· FDA approval of CroFab® shelf life extension and other product improvements; replacement policy implemented for expired product.
Licensing
· Johnson & Johnson is appealing a US District Court ruling in October 2018 invalidating the Zytiga® combination use patent.
· BTG945, a targeted drug in development for treating ovarian cancer, licensed to Carrick Therapeutics for an upfront payment and potential future milestones and royalties.
