28th Sep 2007 07:01
BTG PLC28 September 2007 BTG plc: Close Period Update London, UK, 28 September 2007: BTG plc (LSE: BGC), the life sciences company,today announces the following update ahead of the planned interim resultsannouncement for the six months to 30 September 2007 which will be released on 7November 2007. Trading update BTG's financial position continued to strengthen during the first half of theyear. Underlying recurring royalty revenues remain strong although, asanticipated, BTG's reported royalty revenue is expected to be in line with lastyear because of the continuing weakness of the US dollar against sterling. Inaddition to these royalties, other transactions completed in the period areexpected to contribute around £15m of net profits and gains before withholdingtaxes. These include the previously announced semiconductor chip patent licencesand the licensing of AQ4N by KuDOS to Novacea, Inc, and the completion ofadditional elements of the RFID patent sale and other fully paid-up royaltytransactions. These sources of income, together with continued cost control,have generated positive cash flow in the first half of this financial year whichhas added to the £43m cash reserves reported at the start of the period. Research and development costs are expected to be up to £15m for the full yearbut will be significantly weighted to the second half, with the plannedacceleration of recruitment in the Varisolve(R) safety study, commencement ofphase I clinical studies of BGC20-1531 (migraine) and BGC20-0134 (multiplesclerosis), and the progression towards the start of a phase I study of BGC945(solid tumours) and a phase IIa study of BCG20-1259 (Alzheimer's disease). Looking forward, the recent approval of Campath(R) as a first-line treatment forchronic lymphocytic leukaemia is likely to have a small positive impact on BTG'sroyalty revenues in the second half of the current financial year and providesthe potential for significantly increased royalties in future years. BTG is continuing to seek development partners for a number of itspharmaceutical programmes and to look to licence or sell its remaining non-corephysical science assets. These have the potential to generate both one-offrevenues and future milestones and royalty streams. Operating update Good progress has been made with products under development. Varisolve(R), thevaricose veins treatment, continued to progress through the US phase II safetystudy as planned. A scheduled meeting of the Drug and Safety Monitoring Boardwas held in early September in order to review initial results. Recruitment isproceeding well and it is expected that the study will complete on scheduleduring the first half of 2008. A phase II trial commenced of BGC20-0582, a novel head lice treatment followingthe successful outcome of ex vivo studies. Recruitment is anticipated to finishby the end of 2007, with the trial results being available around the end of thefinancial year. The proof of concept trial on BGC20-0166, a pharmacological treatment forobstructive sleep apnoea based on combining two known serotonin modulators, isfully recruited and the results are expected to be fully analysed by the end of2007. BGC20-0134 and BGC20-1531 progressed towards completion of their preclinicaldevelopment and are anticipated to enter phase I clinical studies in multiplesclerosis and migraine respectively during the second half of the financialyear. BGC945, targeting solid tumours, also continued preclinical developmentincluding long-term safety testing ahead of a planned phase I study, anticipatedto commence in the first half of 2008. BGC20-1259, a multifunctional compound targeting Alzheimer's disease (AD),continued to progress towards a planned phase IIa study in AD patients in 2008while completing certain safety studies. Among licensed programmes, in addition to its approval as a first-line treatmentfor B-cell chronic lymphocytic leukaemia, Campath(R) also commenced a pivotalphase III in multiple sclerosis. Louise Makin, BTG's Chief Executive, commented: "We have made good progress during the first half and the significant one-offtransactions have further strengthened our cash position. With a strongfinancial platform of growing recurring royalties, we can step up investment inour development programmes as planned with the confidence that we can continueto build a valuable pipeline and life sciences business." Ends For further information contact: BTG Financial DynamicsAndy Burrows, Director of Investor Relations Ben Atwell+44 (0)20 7575 1741; mobile: +44 (0)7990 530605 +44 (0)20 7831 3113Christine Soden, Chief Financial Officer+44 (0)20 7575 1591 About BTG BTG in-licenses, develops and commercialises pharmaceuticals and other medicaltechnologies. With a substantial and growing revenue stream of royalties andmilestone payments from out-licensed products, BTG continues to strengthen itspipeline of preclinical and clinical development programmes. Active in thefields of oncology, diseases of ageing, neuroscience, drug repositioning andmedical devices, BTG works from its offices in London, Philadelphia and Osakawith a global partner network of healthcare companies and researchorganisations. For further information, visit: www.btgplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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