Specialist pharmaceutical group BTG (BTG) saw its shares rise 9 per cent on the back of these robust looking half-year figures - indeed, add back acquisition adjustments and reorganisation costs, and underlying operating profits rose 45 per cent to £59.5m. Moreover, strong cash flow from its existing drugs should support new product development.
Revenue from its existing drugs grew strongly in the period - with rattlesnake serum CroFab having boosted sales 23 per cent to £50.5m, while heart medicine DigiFab saw sales jump 29 per cent to £11.5m. Moreover, BTG's renal treatment drug, Voraxaze, was commercially launched in the US in April, while favourable exchange-rate movements meant a £0.5m gain
The gross margin edged up from 72 per cent to 73 per cent and the cash pile rose by £38.8m - that should help fund new treatments such as varicose vein product Varisolve, which has successfully passed Phase III trials. A commercial launch team has been prepared for Varisolve's launch, expected some time during 2014's first half. On the licensing side, revenue rose from £45.5m to £58.2m, helped by a strong contribution from prostate cancer drug Zytiga.
Broker Peel Hunt expects full-year adjusted pre-tax profit of £51.3m, giving EPS of 13.3p (from £42.6m and 14.6p in 2012).
| BTG (BTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 359p | MARKET VALUE: | £1.18bn | |
| TOUCH: | 358-360p | 12-MONTH HIGH: | 426p | LOW: 270p |
| DIVIDEND YIELD: | nil | PE RATIO: | 58 | |
| NET ASSET VALUE: | 130p* | NET CASH: | £151m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 111 | 19.5 | 3.90 | nil |
| 2012 | 143 | 27.7 | 5.60 | nil |
| % change | +29 | +42 | +44 | - |
Ex-div: na Payment: na *Includes intangible assets of £272m, or 83p a share | ||||
