BTG is now generating a solid revenue stream as more of its drugs go on sale, notably in the US, where the speciality pharmaceutical group has expanded commercial operations so that its products are now being sold direct rather than through a distributor.
Of the three business segments, specialty pharmaceuticals more than doubled revenues to £76.7m, reflecting the first full year contribution from direct sales of snakebite antidotes CroFab and DigiFab in the US. Moreover, the introduction of a direct sales force has done wonders for operating margins which jumped from 31 per cent to 51 per cent and sent the unit's profits soaring from £10.8m to £39.4m. Progress is also being made with renal treatment drug Voraxaze which received US approval in January and launched at the end of April. The product has projected global sales of around £25m.
On the licensing and biotechnology side, recurring royalties rose by a third to £79.2m, mainly reflecting a first-time contribution from prostate cancer treatment Zytiga.
Analysts at broker Peel Hunt are forecasting current year adjusted pre--tax profits of £32.9m and EPS of 10.1p.
| BTG (BGC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 362p | MARKET VALUE: | £ 1.2bn | |
| TOUCH: | 360-362p | 12-MONTH HIGH: | 390p | LOW: 217p |
| DIVIDEND YIELD: | Nil | PE RATIO: | 80 | |
| NET ASSET VALUE: | 124p* | NET CASH: | £112m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 75 | 10.7 | 5.90 | nil |
| 2009 | 85 | -11.3 | -7.10 | nil |
| 2010 | 98 | 9.10 | 4.40 | nil |
| 2011 | 111 | -10.8 | 3.40 | nil |
| 2012 | 197 | 23.0 | 4.50 | nil |
| % change | +77 | - | +32 | - |
*Includes intangible assets of £305m or 94p a share | ||||
