BTG trading in line after acquisitions

16th Jul 2013 07:44

Specialist healthcare company BTG said it has been trading in line with expectations with strong operational progress.In a trading update for the period from April 1st to July 15th, the group re-iterated a full-year guidance of revenues in the range of £235m to £245m.During the period, the company successfully completed acquisitions of the Targeted Therapies division of Nordion and EKOS Corporation.BTG anticipates the acquisitions will provide a powerful platform in the interventional medicine sector, with the potential to generate over $1.0bn in annual revenues by 2021.In May, the group raised gross proceeds of £106.3m through a placing of 32.2m new ordinary shares in the company at a price of 330p per share for the acquisition. In April, a new drug application for Varisolve, under development for treating moderate to severe varicose veins, was accepted for full review by the US Food and Drug Administration (FDA) which aims to complete its review by December 4th. Commercial planning is advanced and BTG anticipates a US launch in the first half of 2014.On a less brighter note, the company's Biocompatibles division stopped the manufacture and distribution of brachytherapy products made at the site in Oxford, Connecticut, US, after receiving a warning letter from the FDA citing concerns relating to process validations, data analysis, complaint investigations and environmental controls at the facility. BTG is working to implement processes to address the concerns. In the year ended March 31st, the brachytherapy business generated revenues of £7.3m and a profit before tax of less than £1.0m.In June, BTG's licensee Genzyme, a Sanofi company, announced that the Committee for Medicinal Products for Human Use of the European Medicines Agency issued a positive opinion for approval of Lemtrada for the treatment of adult patients with relapsing remitting multiple sclerosis with active disease defined by clinical or imaging features. A decision by the FDA is anticipated by the end of 2013. BTG will receive a royalty on all global sales of Lemtrada following marketing approvals.Louise Makin, Chief Executive Officer, said: "We are very pleased with the strategic and operational progress made in the period. The business is at an exciting stage in its development, and we are focused on executing the significant growth opportunities we now have. We are also delighted that our shareholders supported our recent capital raise to enable us to make both strategic acquisitions."Shares declined 1.55% to 388.60p at 08:17 on Tuesday.RD