Speciality pharmaceutical group BTG (BTG) managed a solid full-year performance - cash generation from its existing product portfolio reached £47m, which demonstrated the beneficial impact of selling medicines directly through a wholly-owned US distribution network. The group is also awaiting news on the US approval of its varicose veins treatment, Varisolve - not expected until before the first quarter of next year.
The speciality pharmaceuticals unit, which sells anti-snake venom medicines Crofab and Digifab in the US, had a particularly good year - sales there rose 27 per cent to £97.2m, reflecting price rises and demand from wholesalers rebuilding inventory from last year's relatively low levels. That solid performance was matched by BTG's drug-eluting beads division, where revenue was helped by the first direct sales of the LC Bead in the US - segmental sales rose 26 per cent to £36.1m. Meanwhile, revenues from the licensing and biotechnology side, which includes royalties from BTG's mix of legacy products, were seemingly unaffected by generic competition to haemophilia drug, Benefix. Indeed, helped by an improved performance of prostate cancer treatment Zytiga, divisional revenue rose 10 per cent to £100.4m.
Broker Investec Securities expects adjusted pre-tax profit of £53.6m for 2014, giving EPS of 11p (from 14.5p in 2013).
BTG (BTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 345p | MARKET VALUE: | £1.13bn | |
| TOUCH: | 345-346p | 12-MONTH HIGH: | 426p | LOW: 297p |
| DIVIDEND YIELD: | nil | PE RATIO: | 69 | |
| NET ASSET VALUE: | 131p* | NET CASH: | £159m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 85.0 | -11.3 | -7.10 | nil |
| 2010 | 98.0 | 9.10 | 4.40 | nil |
| 2011 | 111 | -10.8 | 3.40 | nil |
| 2012 | 197 | 23.0 | 4.50 | nil |
| 2013 | 234 | 24.1 | 5.00 | nil |
| % change | +19 | +5 | +11 | - |
Ex-div:- Payment:- *Includes intangible assets of £268m, or 82p a share | ||||
