31st Mar 2006 07:37
BTG PLC31 March 2006 The following replaces the Trading Statement released today at 07:13 under RNSnumber 7361A The Preliminary Results will be announced on 25 May 2006 and not 27th May aspreviously stated. The full amended text appears below BTG plc: Close Period Update London, UK, 31 March 2006: BTG plc (LSE: BGC), the medical innovations company,today issued the following update for the year ending 31 March 2006 ahead of theplanned announcement of the Preliminary Results on 25 May 2006. Following the strategic review announced in May 2005, significant advances havebeen made in increasing royalty income from marketed products, reducing costsand realising income from the commercialisation or sale of intellectual propertyassets relating to physical sciences inventions. Good progress has also beenmade in strengthening the drug development pipeline. The year-end cash positionis expected to be ahead of that at the start of the financial year. BTG has today announced the sale of its rights to Teleshuttle Technologies'web-enabled software updating, active desktop and offline browsing patents toTwinTech E.U. LLC, based in Delaware, USA (see separate announcement). BTG willreceive an immediate payment of $35 million plus a share of future profitsearned by TwinTech E.U. from commercialising these patents. After revenuesharing, legal expenses and writing-off capitalised patent filing andprosecution costs, the levels of all of which are still being determined, BTGanticipates that its net gain in respect of the sale of the Teleshuttle patentsshould exceed $15 million. The growth in royalty income from marketed products over the full year isanticipated to match that reported at the half year. Other revenues includeone-off revenues from a series of deals, the most significant being: thesettlement with Zimmer on royalties on the two part hip cup patents; the sale ofpatents relating to radio frequency identity tagging (RFID); settlements withthree companies in respect of the WebNav software patents (the most recent beingwith Amazon.com); an option on certain explosives detection patents and the saleof the Teleshuttle patents. The significant savings in operating costs targeted at the start of the year areexpected to have been met, and for the 2006/7 financial year the net recurringroyalty streams should exceed operating and administrative costs. The Company is expecting to write down the value of certain of its ventureinvestments. One private company has failed to attract the commercial dealsanticipated, thus impairing its value. The value of BTG's investment in SAMSysInc., the Canadian-listed RFID company, has recently declined markedly. Shouldthese declines in value be considered to represent permanent diminutions invalue then a charge of around £4 million will be taken through the incomestatement for the year ended 31 March 2006. Within the development pipeline, the Phase II study of plevitrexed (BGC 9331),targeting gastric cancer, is now fully recruited. Recruitment is underway for aclinical proof of mechanism study of BGC 20-0166, targeting sleep apnoea, and aPhase I study has now commenced for BGC 20-1259, a triple-action potentialtreatment for Alzheimer's disease. Significant progress has also been made withproducts under development by licensees, including Campath(R), for whichencouraging efficacy results were obtained in a Phase II trial in multiplesclerosis, and TRX4, a monoclonal antibody that was shown to significantlyreduce insulin requirements for people with new-onset type-1 diabetes. In total,BTG's pipeline now comprises five unlicensed and nine licensed products inclinical development. Discussions continue with a number of parties over partnering Varisolve(R), themicrofoam treatment for varicose veins. In addition, preparations are being madefor the Phase II study approved by the US Food & Drug Administration when itlifted the clinical hold in July 2005. This study is unlikely to commence untilpartnership discussions are more advanced. Louise Makin, CEO, commented: "We are very pleased with progress this year. It has been satisfying to realisesuch good returns from our physical sciences assets, particularly theTeleshuttle transaction. BTG is becoming further established as a developer of early-stage clinicalassets. We are starting the new financial year with a strong cash position, ahealthy pipeline of clinical and preclinical programmes and a broad portfolio ofrevenue generating products." Contacts: BTG Financial Dynamics Christine Soden, Chief Financial Officer Ben AtwellAndy Burrows, Director of Investor Relations +44 (0)20 7831 3113+44 (0)7990 530605 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 offices in London, Philadelphia and Osakathrough a global partner network of healthcare companies and researchorganisations. For further information, visit: www.btgplc.com.. END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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