A US product launch and two well-timed acquisitions have helped boost specialty pharma group BTG's (BTG) stock by more than a half year on year. The latest set of annual figures suggests the hype is justified. Total revenues were up by a quarter, and even excluding the impact of acquisitions - which contributed £45m - revenues grew by a fifth.
The group's largest division - interventional medicine - saw revenues more than double over the year. Buying liver cancer specialist Therasphere and blood clot expert EKOS boosted the top line, but the US approval of varicose veins treatment Verithena (previously Varisolve) in November also signalled a sea-change for BTG. The product is undergoing a 'controlled launch' in the US and possible extensions to its usage could create a franchise worth more than $500m (£297m).
The specialty pharma unit also performed well, with sales up 5 per cent to £102m. Anti snake venom medicines CroFab and DigiFab are well-established, the latter still growing sales by 15 per cent. Meanwhile, Voraxaze, which treats patients with kidney disease, delivered double-digit growth in only its second year on the market.
Prior to the results, broker Investec Securities expected pre-tax profit of £85m for the current financial year, giving EPS of 16.2p, but has since placed its forecasts under review.
| BTG (BTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 517p | MARKET VALUE: | £1.87bn | |
| TOUCH: | 516-518p | 12-MONTH HIGH: | 624p | LOW: 323p |
| DIVIDEND YIELD: | nil | PE RATIO: | 76 | |
| NET ASSET VALUE: | 147p* | NET CASH: | £38m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 98 | 9.1 | 4.4 | nil |
| 2011 | 111 | -10.8 | 3.4 | nil |
| 2012 | 197 | 23.0 | 4.5 | nil |
| 2013 | 234 | 24.1 | 5.0 | nil |
| 2014 | 291 | 33.3 | 6.8 | nil |
| % change | +24 | +38 | +36 | - |
*Includes intangible assets of £522m, or 144p a share | ||||
