20th May 2014 10:51
LONDON (Alliance News) - Healthcare company BTG PLC Tuesday reported higher pretax profit for its last financial year, as higher revenue and reduced impairment charges more than offset increased research and development spending and the costs of launching varicose vein treatment Varithena.
The company also gave a bullish outlook, saying it expects to further expand the business at the same time as delivering profitable growth.
The company reported a pretax profit of GBP33.3 million for the year to end-March, up from GBP24.1 million a year earlier, as revenue rose to GBP290.5 million, from GBP233.7 million. It said revenue more than doubled in its interventional medicine unit, grew 5% in specialty pharmaceuticals, while underlying revenue was up 40% in licensing.
It said the launch of Varithena was progressing well and it expects the first commercial treatments in third quarter of 2014.
The company said it wants to build a USD1 billion business by 2021, and is looking for more acquisitions to bolster both its interventional medicine and specialty pharmaceuticals business. It added TheraSphere and EKOS Corporation to its interventional medicine unit last year, and said both businesses are integrated and performing strongly, in line with expectations.
It said the growth in revenue at its interventional medicine business, to GBP79.1 million, from GBP36.1 million, was driven by GBP45.0 million in revenue from acquisitions and 16% growth in its beads products.
BTG's beads include drug-elating beads, embolisation beads and radioactive beads.
"We now anticipate a period of sustainable, profitable growth combined with ongoing investment to expand the indicated uses and geographic availability of our products," Chairman Garry Watts said in a statement.
It said revenue in the current financial year is expected to be between GBP330 million and GBP345 million.
However, in a note to clients, Jefferies said the revenue estimate was between 4% and 8% below its current estimates, and while 2014 revenue had beaten hopes, largely thanks to the EkoSonic acquisition, profit was broadly in line with forecasts due to higher operational expenditure. The bank has a Hold rating on the stock.
BTG shares were down 1.8% at 515.5 pence Tuesday morning, one of the biggest falls on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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