Beads and seeds boost Biocompatibles

RESULT: Sales jump at Biocompatibles on strong demand for its cancer treatments

August 28, 2009

Biocompatibles produced impressive revenue figures in the first half of 2009. In April 2002 it sold its stent business to Abbott Laboratories and developed rival drug-eluting beads instead - these target liver tumours via a catheter. In the latest six months bead turnover jumped from £2.6m to £6.7m, with more than half the sales being in the US.

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There was also a maiden six month's contribution of £3.37m from BrachySciences (acquired in 2008) which uses 'seeds' to carry radiation to treat prostate cancer. The balance of the revenues came from a licensing agreement with Abbott and selling cosmetic beads made in Germany. They flatten wrinkles around the mouth and nose where it would be dangerous to use Botox.

Biocompatibles is also boldly increasing its sales forecasts. It anticipates 2009 sales of between £24m and £26m against a previous range of £22m to £24m and last year’s figure of £17.7m. It also expects year-end net cash of £28m after payment of a £2m dividend in May.

But Biocompatibles holy grail is the metastatic disease market, where cancer spreads from an original site elsewhere - and in the case of colorectal cancer (of the large bowel and rectum), the liver is the most common destination for secondary tumours. Nearly 37,000 people are diagnosed in the UK with colorectal cancer each year and this market is between five and 10 times as large as primary liver cancer. Recruitment for several metastases clinical trials seems to be progressing well.