Speciality pharmaceuticals group BTG's half-year figures reflected the impact of taking charge of the direct sales of its snakebite antidotes portfolio. That meant seasonal sales of CroFab and DigiFab more than quadrupled to a combined £50.1m after former marketing partner Nycomed was cut out of the picture. And recurring revenue grew £5.3m year on year to £35.7m, substantially helped by robust sales of haemophilia product BeneFIX.
But rapid growth in recent years has left management with plenty of tidying up, which meant impairment and restructuring costs of £24.2m in the period. While a shift to selling its own products isn't cheap; expenses of £4.7m are expected to rise rapidly from January as its US salesforce takes shape. Research and development costs, meanwhile, rose £5.7m to £19m as the company absorbed Biocompatibles' ongoing programmes – it bought Biocompatibles in January – and entered the final phase of varicose veins treatment Varisolve's development. Data here is expected in 2012's first half. However, the Biocompatibles deal, and final royalties from BeneFIX, has left BTG looking like the UK's financially strongest pharmaceutical company outside the big three.
Peel Hunt forecasts full-year adjusted pre-tax profit of £7.8m, giving adjusted EPS of 9.5p (£10.8m and a loss of 14p for 2011).
BTG (BGC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 301p | MARKET VALUE: | £985m | |
| TOUCH: | 300-302p | 12-MONTH HIGH: | 318p | LOW: 208p |
| DIVIDEND YIELD: | Nil | PE RATIO: | 47 | |
| NET ASSET VALUE: | 125p* | NET CASH: | £90.2m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 46.1 | 1.60 | 0.90 | nil |
| 2011 | 111 | 19.5 | 3.90 | nil |
| % change | +141 | +1119 | +333 | – |
*Includes intangible assets of £318m, or 97p a share | ||||
