26th May 2005 07:03
BTG PLC26 May 2005 BTG plc Preliminary Results and Strategic Review London, UK, 26 May 2005: BTG plc (LSE: BGC), the medical innovations company,today announces its preliminary results for the year ended 31 March 2005together with the results of a strategic business review. Strategic review • Positions BTG for profitability and sustainable growth • Future investment to focus on medical innovations • Costs reduced by ca. £5m; targeting an additional £1.5m savings • Stepping up investment in life sciences. Over next four years: • Acquire, on average, 6 new projects per year for development and commercialisation • Increase number of active development projects from 7 to 15 • Increase annual investment in clinical development from £5m to £10m Financial summary • Total revenues £42.7m (2004: £52.9m, including £12m from Acambis settlement) • Net revenues £26.3m (2004: £32.0m, including £7.2m from Acambis settlement) • Underlying royalties on launched products up 12% to £31.3m (2004: £27.8m, excluding £12.0m from Acambis settlement) on reported basis and up ca. 20% at constant exchange rate • Pre-tax loss £34.3m including £11.8m restructuring costs and £3.0m equity write-down (2004: £22.8m) • Net funds at year-end £34.4m (2004: £66.3m including cash inflow of £26.6m from Rights Issue) • Net funds includes £7.6m balance of Rights Issue proceeds for Provensis Post-year-end developments • Appointment of Christine Soden as Chief Financial Officer from 1 July 2005 announced today • Settlement with Zimmer Holdings Inc. generating gross revenues of $17.4m before revenue sharing in the current financial year and future royalties • Varisolve(R) clinical hold response submitted to FDA with protocol for proposed Phase II study Louise Makin, BTG's Chief Executive Officer, commented: "The strategy outlined today positions BTG for profitability and sustainablegrowth. Whilst maximising value from our current pipeline, we will in futureconcentrate our resources on acquiring, developing and commercialising medicalinnovations to exploit the tremendous opportunities available to BTG." - Ends - Enquiries: BTG plc Financial Dynamics Andy Burrows Ben AtwellTel: +44 (0) 20 7575 1741 Tel: +44 (0) 20 7831 3113 A presentation for analysts will take place today at 9.30am at BTG plc, 10 FleetPlace, Limeburner Lane, London EC4. The presentation will be webcast onwww.btgplc.com. Please call Mo Noonan on +44 (0) 20 7831 3113 for furtherdetails. About BTG BTG acquires rights to early stage pharmaceuticals and other medicaltechnologies from a global network of corporations, universities and researchinstitutions. We apply resources including finance, intellectual property andproject management skills to fund and manage outsourced preclinical and clinicaldevelopment programmes. We then commercialise the technologies by licensing topharmaceutical or device companies, or by creating companies to exploit them.Our pipeline comprises around 50 assets at varying stages of development,contributing to an increasing range of products marketed by our licensees. BTGoperates from London, Philadelphia and Tokyo. For further information visit:www.btgplc.com. Chairman's statement During the past year there have been significant changes to the Group'sstrategy, operations and personnel, aimed at driving the business toprofitability and providing the platform for sustainable future growth. Louise Makin, who joined as Chief Executive Officer in October 2004, hascompleted a comprehensive review of our strategy. As a result, we willconcentrate our resources exclusively on acquiring, developing andcommercialising pharmaceuticals and other medical technologies. We will,however, maintain sufficient capabilities to enable us to realise value from theexisting physical sciences portfolio. In December 2004, we took further steps to decrease ongoing costs by reducingthe size of the technology portfolio and introducing other efficiencies. Whilewe regret the associated job losses, the expected savings of about £5 millionper annum will enable us to continue building our portfolio of pharmaceuticalsand other medical technologies. Financial summary Total revenues for the year of £42.7 million were £1.8 million higher than lastyear after deducting the exceptional receipt of £12 million last year fromAcambis plc. Net revenues excluding that settlement were 6% higher at £26.3million. Investment in Provensis and Varisolve(R) development was 28% lower at £11.5million. Investment in developing other technologies increased by 31% to £6.3million. Administration expenses included exceptional costs of £9.5 millionrelating to the reorganisation and impairment provisions on our US and UK officeleases. Other operating expenses were higher this year following the portfolioreductions and reflecting progress with a number of litigation cases. The exceptional items referred to above together with provisions requiredagainst some equity investments resulted in a loss before tax of £34.3 million(2004: £22.8 million). At period end net funds were £34.4 million (2004: £66.3 million). The Directorsconsider these resources to be sufficient to implement the Group's strategy. The Directors do not recommend payment of a dividend for the year. Board changes In addition to the appointments of Louise Makin as Chief Executive Officer andAlison Wood as Non-executive Director, we are delighted that Christine Soden isto succeed Rusi Kathoke as Chief Financial Officer from 1 July 2005.Christine's strong commercial focus and life sciences industry experience willbe of tremendous value to BTG as we implement our new strategy. Rusi, who hasserved BTG as CFO for almost 20 years, is retiring and leaves the Board in July2005. Sir George Radda, having served six years as Non-executive Director, doesnot intend to stand for re-election at this year's Annual General Meeting. Outlook We have reduced costs and our recurring revenues are increasing. Achievingprofitability excluding the results of Provensis this year, however, will hingeupon the completion of a few key new licence agreements, and experience teachesus that it is difficult to predict the exact timing and magnitude of revenuesfrom such deals. With the new strategy, strong leadership and a smaller, highly capableworkforce, we believe that BTG is well positioned for the future. Sir Brian Fender Chief Executive Officer's review The clear objective of the strategic review we have just completed is toposition BTG for profitability and sustainable growth. To deliver sustainablegrowth, we have to balance short and long-term returns. So whilst we have acteddecisively to reduce ongoing costs by about £5 million per annum, we recognisethat future success will depend on continued investment, targeted at those areasthat have the potential to deliver the greatest returns. We anticipate that with additional savings of around £1.5 million as we fullyimplement our new strategy, our fixed costs will be covered by recurringrevenues. We intend that, in the near term, the direct investments we make inacquiring and developing pharmaceuticals and other medical technologies will becovered by revenues from new licence agreements, milestones and sales of patentrights and equity holdings. In the longer term, we anticipate that our revenues will exceed our costs andinvestments by an increasing margin. We can then choose how to use the excess,striking the right balance between re-investing profits for further growth andproviding dividends to shareholders. Increased investment focus BTG has operated four intellectual property (IP) commercialisation models: • Licensing life and physical science technologies to companies which complete development and market the resulting products • Asserting life and physical science technology patents • Exploiting our IP through company creation, and participation in other ventures, e.g. funds and investment in companies where we do not own the IP • IP services, e.g. royalty auditing for third parties, IP mining. In future, we will intensify our focus on acquiring, developing andcommercialising pharmaceuticals and other medical technologies in our currentareas of expertise in oncology, ageing and neuroscience and drug repositioning.We will also continue to seek opportunities in the medical devices sector.Specifically, we plan to: • Acquire on average six new projects each year for development and commercialisation • Increase the number of projects in active development at any one time from seven at present to fifteen over a four-year period • Increase direct investment in preclinical and clinical development programmes from around £5 million per year (excluding Varisolve(R) development) to around £10 million per year within four years. Investing in development is intended to increase the value of the drug ormedical technology by demonstrating proof of concept. Typically, for a NewChemical Entity (NCE) we will take development up to Phase II clinical studies,where proof of concept is established in patients with the target disease. Indrug repositioning, which can be a new formulation of an existing product, a newindication for a drug, or the combination of two approved pharmaceuticals totreat a condition for which neither is separately approved, we will follow asimilar strategy but the type of development required varies. Proof of concept in man is recognised in the industry as one of the maininflexion points in terms of the asset value. By licensing the NCE orrepositioned drug at this stage to another company, we seek to capture thissharp increase in value and actively manage the risk/reward balance in theportfolio. We usually earn signature fees when we licence the drug or medical technology,milestone payments as progress is made, and royalties when our licenseessuccessfully launch products. Alternatively, where appropriate, we will createa company to undertake initial development prior to commercialisation, and thenseek to realise value through our equity holding in the company as its businessprogresses. Success factors Our new strategic focus builds on BTG's strong track record in commercialisingmedical innovations. Inventions we have commercialised include MagneticResonance Imaging, the Oxford Knee, the Two-part hip cup, Factor IX forhaemophilia B and Campath(R) for chronic lymphocytic leukaemia. We have a promising pipeline of pharmaceuticals and medical technologies, someof which are currently under development by BTG and others of which have beenlicensed to pharmaceutical companies to complete development. In the year to 31 March 2005, royalties from launched products grew by more than12% to £31.3 million (excluding the receipt of £12.0 million from Acambis).Pharmaceuticals and other medical technologies accounted for more than 90% ofthese revenues. This substantial, increasing and dependable revenue streamenables continued investment in the pipeline to create future value. Having access to early stage drug and other medical technologies invented byothers is critical to our success. We have established strong global networkswith pharmaceutical and biotechnology companies, research institutions anduniversities from whom we source pharmaceuticals and other medical innovations.We intend to expand these networks and we are improving our offering to thesources. The market opportunity BTG bridges the gap between corporations, research institutes and universitiesthat need to demonstrate returns on their research expenditure and thepharmaceutical industry that needs to fill its pipelines with innovative newmedicines. BTG has the skilled, experienced personnel and the global networks withincorporations and research institutions to access the most promisingopportunities in our chosen therapy areas. We have the resources and industryknowledge to conduct development projects that add value, and we have theproject management expertise to run them efficiently through our establishedsupplier networks. We have the commercial skills to find the best licensees foreach product, or to create companies where that route would lead to greatestvalue. Realising value from the current portfolio We do not intend to invest further in building a physical sciences portfoliobased on licensing enabling technologies or asserting patents. However, thereis significant value in the current portfolio that we intend to extract. For example, we are currently conducting separate patent infringementlitigations against Microsoft, Apple, Amazon.com and a number of other companiesin relation to the Teleshuttle and WebNav patent portfolios. We also haveenabling technologies such as Radio Frequency ID (RFID), where the marketopportunity is rapidly growing. We are therefore maintaining core expertise in these areas and will fund asrequired ongoing litigation and other activities that we believe will extractvalue. An experienced, specialist team will manage these projects through tofruition. We have a largely unlisted equity portfolio comprising more than 25 investments,which we have built up primarily over the past five to six years. These includefunds, passive investments and investments in companies which we helped tocreate and have continued to support. We intend to realise value from these,while continuing to play an active role in around 10 key companies that have thebest prospects. We do not plan to make new investments as a passive investor in third partycompanies or partner funds going forward. We will, however, retain our companycreation expertise, which resides within the ventures personnel and within otherbusiness teams. Out-licensing the pharmaceuticals and other medicaltechnologies at appropriate stages of development will be the most commoncommercialisation route, but there will be a number of cases where creating acompany to develop and commercialise an asset is the most appropriate route. The provision of IP services, such as royalty auditing and providing IP servicesto technology transfer offices, has been a small-scale activity for BTG. Wewill maintain this activity to the extent that there is demand from keycustomers. Prospects BTG has many core strengths: increasing recurring revenue streams, a strongpipeline of novel medical innovations, global networks and resources to expandthe pipeline, a portfolio of physical science technologies from which we canrealise value, and highly skilled employees. Since joining BTG, my main goals have been to reset the cost base to a lowerlevel, simplify the business and develop a strategy that will deliver bothprofitability and sustainable growth. I believe the strategy we have announcedtoday will enable us to create shareholder value by exploiting the tremendousopportunities available to BTG. Operations overview There have been significant changes to BTG's operations during the past year.We have re-focused the business to concentrate future investment in one area ofour business: the acquisition, development and commercialisation ofpharmaceuticals and other medical technologies. In doing so, we have prioritised our technology portfolio to approximately 50technologies in active development or commercialisation, of which two-thirds aremedical innovations and the balance physical science technologies. We willcontinue to acquire promising medical innovations. We intend to realise valuefrom the existing physical sciences portfolio, but will not add to thisportfolio. As a consequence of the new strategy we have reorganised operations.Approximately 50 redundancies were made at the end of 2004, which will yieldcost savings of around £5 million in a full year. Further savings of around£1.5 million per annum are anticipated following full implementation of the newstrategy. To reduce fixed overheads further, we are seeking to sub-let our current officesin London and Philadelphia and relocate to smaller premises. The rentalproperty market, particularly in London, is currently difficult. Consequently,following several unsuccessful attempts, we have taken a conservative view ofour ability to sub-let and provided significant charges for lease impairments inthe results for the year. We are, however, continuing our efforts to sub-letboth offices. Varisolve(R) Provensis completed the programme of studies intended to enable resumption ofthe US clinical development of Varisolve(R). The preclinical data weresubmitted with the protocol for a proposed Phase II clinical safety study to theUS Food and Drug Administration (FDA). The FDA requested refinements to theprotocol, which were submitted in May 2005. Discussions are continuing with potential partners following receipt of theFDA's comments on the proposed Phase II study protocol. The total investment in Provensis operations and Varisolve(R) development duringthe year was £11.5 million, including £2.3 million relating to reorganisationcosts and a lease impairment charge. Portfolio development There was good progress with marketed products. BeneFIXTM (Factor IX) royaltiesgrew 16% to £13.2 million. Campath(R), approved to treat B-cell chroniclymphocytic leukaemia (CLL), continued to progress through five clinical trials.One of these is a Phase II trial investigating the effectiveness of Campathand Rebif(R) (interferon beta-1a) in delaying the sustained accumulation ofdisability in 240 patients with previously untreated relapsing/remittingmultiple sclerosis. Preliminary results are due during 2005. Forest Laboratories, Inc. received approval in November 2004 to market Combunox(R) (Oxycodone HCl and Ibuprofen) for the short-term management of acute,moderate to severe pain. BTG received a milestone payment of $4.5 million.Forest launched Combunox(R) nationwide in the US in March 2005. In May 2005, BTG reached settlement with Zimmer Holdings, Inc. in respect of alllitigation and ongoing claims relating to the two-part hip cup. In settlement,BTG received $17.4 million gross revenues before revenue sharing, which will berecognised in the 2005/6 financial year, and will also receive a royalty onfuture sales. Several BTG licensees made progress with products in development but not yetapproved. Novacea, Inc. commenced enrolment of patients for a Phase I study ofBanoxantrone (AQ4N) in treatment-resistant advanced solid tumours ornon-Hodgkin's lymphoma (NHL). Enrolment also commenced for a Phase I/II studyin patients with NHL or CLL. TolerRx, Inc. has completed an 18 month follow-up of 80 patients with new-onsetType I diabetes treated with the TRX4 antibody (anti-CD3) in a Phase II Europeanclinical trial. Further clinical trials are planned for 2005. TolerRx has alsocompleted a Phase I clinical trial of TRX4 in subjects with moderate to severepsoriasis. Xanthus Life Sciences started a second Phase I study of SymadexTM (formerlyC-1311), an investigational cancer treatment with a novel mode of action, inpatients with advanced solid tumours. The company also presented preclinicaldata on the gene expression profile of SymadexTM at the 2005 annual meeting ofthe American Association for Cancer Research. This showed that SymadexTMexerted a strong effect on the major classes of genes targeted by certain cancertherapeutics. There was also gene activity suggesting the product may have arole in autoimmune disorders such as multiple sclerosis. BTG invested £6.3 million progressing development programmes for severaltechnologies that are not yet licensed, of which just under £5 million relatedto life science programmes. A phase I/II trial was conducted of Plevitrexed(BGC 9331) as a potential treatment for gastrointestinal malignancies and othersolid tumours. Plevitrexed has now completed Phase II trials in a broad rangeof solid tumours, and BTG is currently seeking licensees for Plevitrexed. BGC 945, a targeted cancer agent with the potential to treat gynaecological andother solid tumours, is undergoing preclinical development prior toout-licensing. A proof of principle preclinical study was commenced for BGC 20-0402, one of aseries of CORE-2 GlcNAc-Transferase inhibitors. Originally identified innatural plant extracts by researchers at King's College London, these inhibitorsare targeting inflammatory diseases, complications of diabetes and certain formsof cancer. Preclinical development was completed for BCG 20-1259, a potential treatment forAlzheimer's Disease, and a Phase I study is planned to commence during 2005. We signed 17 new licence agreements during the year, including assigning theCOLAL(R) colonic drug delivery and other patents assigned to Alizyme plc for£1.4 million plus a royalty on future sales if products result from the otherpatents. Modafinil was licensed to a pharmaceutical company for development asa combination treatment for cancer pain, generating a downpayment and a royaltyon product sales. The two-part hip cup was licensed to manufacturers in returnfor access fees and future royalties. Financial review Results for the year The main features of the results for the year are the growing recurring revenuesand the reorganisation of the business, which positively impacts ongoingexpenditure but adversely impacted the year's results because of significantexceptional charges. Revenues At the half-year we gave guidance that revenues were expected to be of the sameorder as last year, excluding the one-off receipt of £12 million from Acambisplc to settle a legal dispute. Total revenue was £1.8 million higher at £42.7 million (2004: £40.9 millionexcluding the receipt of £12.0 million from Acambis). Revenues includedroyalties from launched products of £31.3 million (2004: £27.8 million,excluding £12.0 million from Acambis), showing an increase in underlyingroyalties of 12%. Milestone payments were £2.8 million (2004: £1.6 million),the main component of which was a payment of $4.5 million from ForestLaboratories, Inc. on FDA approval of the painkiller CombunoxTM. Income from new agreements was £4.2 million (2004: £6.5 million) and proceedsfrom the sale of patent rights and investments were £4.3 million (2004: £4.1million). Investment The investment in developing Provensis and Varisolve(R) of £11.5 million (2004:£15.9 million) included £2.3 million of redundancy and lease impairment charges.The remainder ensured completion of the preclinical study programme,regulatory development and maintenance of the supply chain and operations. Investment in other development programmes, including Plevitrexed (BGC 9331),BGC 20-0402, BGC 20-1259 and others (details are in the preceding review ofoperations), was £6.3 million (2004: £4.8 million). Investments totalling £2.8 million were made in seven existing ventures, ofwhich five were companies and two funds. Provisions of £3.0 million were madein the equity portfolio following material events in three companies and apost-year-end valuation of the portfolio. A profit of £1.3 million was made onthe disposal of other investments. The net book value of BTG's unlistedinvestments was £8.3 million (2004: £9.4 million). The market value of listedinvestments was £5.8 million (2004: £13.8 million), primarily reflecting adecline in the market capitalisation of SAMSys Technologies, Inc. Operating and administrative expenses Operating costs, which include patent amortisation, patent renewal fees andlitigation costs, were £7.4 million (2004: £4.4 million). This was a result ofhigher patent amortisation costs following the streamlining of the patentportfolio, and increased litigation costs as our Teleshuttle, WebNav andTwo-part hip cup cases moved forward. Total administrative expenses were £32.6 million (2004: £29.7 million). Therewas a decrease in staff and other employment related costs to £23.2 million(2004: £27.7 million), but restructuring costs of £3.3 million and provisionsfor lease impairments of £5.7 million led to the overall increase. Therestructuring will have a positive impact on costs in the current financialyear. Loss before taxation Excluding the results of Provensis, the loss before taxation increased to £22.8million (2004: £6.9 million), of which £11.8 million was exceptional items andanother £3.0 million related to equity write-downs. Including the £11.5 millioninvestment in Provensis, the overall loss before taxation was £34.3 million(2004: £22.8 million). Cash Net funds at year-end were £34.4 million (2004: £66.3 million). We considerthis sufficient to fund the ongoing needs of the business. Consolidated profit and loss account for the year ended 31 March 2005 £ million Exceptional 2005 Exceptional 2004 items itemsTotal revenue 38.31 4.34 42.65 36.76 16.12 52.88 _____ _____ _____ _____ _____ _____Turnover 38.31 - 38.31 36.76 12.00 48.76 Revenue sharing (15.69) - (15.69) (16.01) (4.84) (20.85) _____ _____ _____ _____ _____ _____Provensis development (9.17) (2.31) (11.48) (15.90) - (15.90)Other new technology development (6.27) - (6.27) (4.79) - (4.79) _____ _____ _____ _____ _____Total development (15.44) (2.31) (17.75) (20.69) - (20.69)Other operating expenses (7.35) - (7.35) (4.37) - (4.37)Administrative expenses (23.16) (9.47) (32.63) (27.66) (2.05) (29.71) _____ _____ _____ _____ _____ _____Operating loss (23.33) (11.78) (35.11) (31.97) 5.11 (26.86) Profit on disposal of other - 2.19 2.19 - 3.08 3.08fixed assetsAmounts written off other fixed - (3.02) (3.02) - (0.42) (0.42)assets _____ _____ _____ _____ _____ _____Loss on ordinary activities (23.33) (12.61) (35.94) (31.97) 7.77 (24.20)before interest and taxInterest receivable 1.72 - 1.72 1.46 - 1.46Interest payable and similar (0.08) - (0.08) (0.09) - (0.09)charges _____ _____ _____ _____ _____ _____Loss on ordinary activities (21.69) (12.61) (34.30) (30.60) 7.77 (22.83)before taxationTaxation on loss on ordinary (0.17) - (0.17) 2.17 (2.33) (0.16)activities _____ _____ _____ _____ _____ _____Loss on ordinary activities (21.86) (12.61) (34.47) (28.43) 5.44 (22.99)after taxationLoss applicable to minority 0.24 - 0.24 0.30 - 0.30equity interests _____ _____Loss for the financial year- (21.62) (12.61) (34.23) (28.13) 5.44 (22.69)retained for equity shareholders _____ _____ _____ _____ _____ _____Basic and diluted loss per share (23.53p) (19.40p) _____ _____ All results relate to continuing activities. There were no discontinuedactivities during the current and previous years. The historical cost loss isnot materially different from the reported loss. Consolidated statement of total recognised gains and losses for the year ended 31 March 2005 £ million 2005 2004Loss for the financial year attributable to ordinary shareholders (34.23) (22.69)Currency translation differences on foreign currency net investments (0.31) (0.68)Total recognised gains and losses relating to the year (34.54) (23.37)Unrealised gain on intangible assets 0.24 - _____ _____Total gains and losses recognised since last annual report (34.30) (23.37) _____ _____ Balance sheets as at 31 March 2005 £ million Group Group Company Company 2005 2004 2005 2004Fixed assetsIntangible assets - patents and other IPR 10.25 11.62 - -Tangible assets 10.91 10.10 - -Investments 11.98 14.03 15.56 15.56 _____ _____ _____ _____ 33.14 35.75 15.56 15.56 _____ _____ _____ _____Current assetsDebtors: amounts falling due within one year 7.47 7.04 187.34 186.48Short-term deposits 20.08 48.24 - -Cash at bank and in hand 19.02 19.73 0.01 0.37 _____ _____ _____ _____ 46.57 75.01 187.35 186.85Creditors: amounts falling due within one year (24.14) (25.98) (2.13) (1.25) _____ _____ _____ _____Net current assets 22.43 49.03 185.22 185.60 _____ _____ _____ _____Total assets less current liabilities 55.57 84.78 200.78 201.16Provisions for liabilities and charges (7.63) (2.47) - - _____ _____ _____ _____Net assets 47.94 82.31 200.78 201.16 _____ _____ _____ _____ Capital and reservesCalled up share capital 14.76 14.76 14.76 14.76Share premium account 182.22 182.24 182.22 182.24Capital reserve 7.31 7.31 - -Profit and loss account (156.43) (122.32) 3.80 4.16 _____ _____ _____ _____Equity shareholders' funds 47.86 81.99 200.78 201.16Minority shareholders' equity interest 0.08 0.32 - - _____ _____ _____ _____ 47.94 82.31 200.78 201.16 _____ _____ _____ _____ Consolidated cash flow statement for the year ended 31 March 2005 £ million 2005 2004Total cash outflow from operating activities (29.61) (15.98) Return on investment and servicing of financeInterest paid (0.08) (0.09)Interest received 1.70 1.88 _____ _____Net cash inflow from returns on investments and servicing on finance 1.62 1.79 _____ _____TaxationOverseas tax paid (0.16) (0.16) _____ _____Tax paid (0.16) (0.16) _____ _____Capital expenditure and financial investmentsCash received on sale of intangible assets 1.89 0.03Purchase of tangible assets (3.07) (4.64)Cash received on sale of investments 2.45 4.09Cost of disposal of investments - (0.05)Capital repayment - 0.01Expenditure on investments (2.75) (5.37)Transfer of KetoCytonyx to subsidiary company - 2.61Investment in patents (2.19) (3.77) _____ _____Net cash outflow from capital expenditure and financial investments (3.67) (7.09) _____ _____Net cash outflow before use of liquid resources and financing (31.82) (21.44) _____ _____Management of liquid resources 28.16 6.41 Financing Issue of ordinary share capital - 29.70Expenses paid in connection with share issue (0.02) (3.09) _____ _____Net cash inflow from financing (0.02) 26.61 _____ _____(Decrease)/increase in cash in the period (3.68) 11.58 _____ _____ NOTES TO THE ACCOUNTS 1. The financial information set out above does not constitute theCompany's statutory accounts for the year ended 31 March 2005. Statutoryaccounts for 2004 have been delivered to the Registrars of Companies, and thosefor 2005 will be delivered following the Company's Annual General Meeting. Theauditors have reported on those accounts; their reports were unqualified and didnot contain statements under s237 (2) or (3) of the Companies Act 1985. 2. Total revenue £ million 2005 2004Royalties from launched products 31.29 39.84Milestones 2.81 1.58Income from new agreements 4.21 6.45 _____ _____Licence income 38.31 47.87Audit revenues - 0.89 _____ _____Turnover 38.31 48.76Proceeds from sale of other fixed assets 4.34 4.12 _____ _____Total revenue 42.65 52.88 _____ _____ Revenue sharing on turnover 15.69 20.85 Revenue sharing on sale of other fixed assets 0.68 - _____ _____Total revenue sharing 16.37 20.85 _____ _____ Total income net of revenue sharing 26.28 32.03 _____ _____ Exceptional income consists of proceeds from sale of other fixed assets, whichcomprises proceeds from the sale of equity investments and patent rights. In2004, exceptional income also included £12.00 million received from the Acambissettlement. The profit on sale of other fixed assets shown in the profit and loss account isafter deducting revenue sharing of £0.68 million (2004: nil) due on the sale ofpatent rights. 3. Loss per share. This is calculated on a loss after minority interestof £34.23 million (2004: £22.69 million) and a weighted average number ofordinary shares of 145.48 million (2004: 116.99 million). The weighted averagenumber of shares excludes the shares held by the BTG Employee Share Trust. 4. The Annual Report and Accounts will be posted to all shareholders on20 June 2005 and copies will be available to the public from the Company'sregistered office, 10 Fleet Place, Limeburner Lane, London EC4M 7SB. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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