18th Jul 2007 07:01
BTG PLC18 July 2007 BTG plc: 2007 Annual General Meeting and Interim Management Statement London, UK, 18 July 2007: BTG plc (LSE: BGC), the life sciences company, todayissues the following AGM and Interim Management Statement, which is a summary ofcomments to be made by Sir Brian Fender, Chairman, and Dr Louise Makin, ChiefExecutive Officer, at the company's AGM at 10.30am today. The Group reported strong results for the year ended 31 March 2007. Increasedrecurring royalties from licensed products and good realisations from thedivestment of non-core IP together with reduced operating and administrativecosts have enabled the Group to report a second consecutive year of profits.There was good progress both in BTG's internal pipeline of pharmaceuticalprogrammes and in its licensed programmes. Since year-end, BTG has continued to make good financial and operating progressin the year to date, in line with Board expectations. As part of the divestmentprogramme, two licences were granted for patents relating to storage capacity insemiconductor chips, generating $44m in gross income plus an additional $22m ifan option is exercised and other conditions are satisfied. In addition, anagreement to grant exclusive worldwide rights to the experimental cancertreatment AQ4N was signed with KuDOS Pharmaceuticals Ltd and Novacea, Inc. Thesedeals have generated approximately £11m net of costs and taxes in the currentfinancial year. The Group is actively seeking additional licensees for the semiconductor IP andfor its remaining physical sciences technologies. It is also seeking developmentand commercialisation partners for a number of pharmaceutical programmesincluding plevitrexed, which was recently granted orphan drug status in the USfor ovarian and gastric cancer. There is good momentum in the internal development pipeline, which comprises tenfull development programmes, of which four are undergoing clinical trials, plusfour additional research programmes. BGC20-1259, under development for dementia, completed a Phase I study. The drugwas well tolerated and has been shown in this and other studies to occupy keymolecular targets associated with cognitive improvement and the alleviation ofdepressive symptoms. In addition, although the study was not powered todemonstrate statistically significant changes in cognition in the healthy youngand elderly volunteers, there were significant dose-related improvements inself-assessed calmness, power of attention and quality of working memory. Theseencouraging results are planned to be explored in a Phase IIa study in peoplewith Alzheimer's disease, which is anticipated to start in the second half ofthis financial year. BGC20-0134, a structured lipid for the treatment of multiple sclerosis, andBGC20-1531, an EP4 receptor antagonist for migraine, both continued through latepreclinical development ahead of their first Phase I studies, which arescheduled to commence towards the end of 2007. BGC945 also continued to progressthrough preclinical development and is anticipated to enter Phase I studies inthe first half of 2008. A Phase II study of BGC20-0582, a proprietary formulation of a GRAS (generallyregarded as safe) compound for head lice, is expected to start in late summer2007, with the results due before the end of the calendar year. A third centre has started recruiting patients for the Varisolve(R) US Phase IIsafety study. This is on track to complete treatment and follow-up of 50patients around the end of the financial year. Progress is also anticipated in several licensed programmes. The approval ofGenzyme Corporation's sBLA for Campath(R) as a first-line treatment for chroniclymphocytic leukaemia (CLL) would significantly increase the number of CLLpatients available for treatment with Campath(R). Genzyme also expects by theend of 2007 to commence two pivotal Phase III trials of Campath(R) in multiplesclerosis following the excellent efficacy results in Phase II. Tolerx, Inc. is continuing with a dose-optimisation Phase II study of TRX4, amonoclonal antibody for the treatment of type 1 diabetes, ahead of a Phase IIIstudy planned to begin before the end of the year. Outlook The Group's financial position is strong, with the revenues earned to date fromone-off transactions, the anticipated continued steady growth in recurringroyalty revenues and a healthy cash balance. This will enable investment in R&Dto increase as planned to around £15-16m this year to expand and further developthe Group's pipeline of pharmaceutical products. Overall, the financial andoperating performance of the Group is expected to be in line with internalexpectations. Louise Makin, Chief Executive Officer, commented: "We have made a strong start to the year. With £11m generated in one-offrevenues already, continued steady growth anticipated in our recurring royaltiesand a healthy cash position, we can progress our current development programmesand explore options to strengthen our pipeline further. "Building value in our pipeline is the key route by which we will createshareholder value. We look forward to reporting significant progress during theremainder of the year, including the progression of several programmes intoPhase I studies, the start of two Phase II studies, the completion of ourVarisolve(R) and head lice Phase II studies and the completion of the proof ofmechanism sleep apnoea clinical study. We believe we are well positioned tobecome a leading life sciences company and to create significant shareholdervalue." For further information contact: BTG Financial DynamicsAndy Burrows, Director of Investor Relations Ben Atwell/Anna Keeble+44 (0)20 7575 1741; mobile: +44 (0)7990 530605 +44 (0)20 7831 3113Christine Soden, Chief Financial Officer+44 (0)20 7575 1591 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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