1st Apr 2005 07:00
BTG PLC01 April 2005 BTG plc: Close period update London, UK, 1 April 2005: BTG plc (LSE: BGC), the IP and technologycommercialisation company, today enters its close period and provides thefollowing update on trading for the year ended 31 March 2005. Total revenues for the full year are expected to be approximately £41 millionand the loss before tax is anticipated to be approximately £26 million, both inline with the Board's expectations. Revenues are expected to comprise: • gross royalties from sales of launched products some 10% higher (over 20% higher at constant currency) at approximately £30 million • new licence revenues comparable to last year at approximately £7 million • combined milestone payments and venture realisations of around £4 million. Investment in Provensis and Varisolve(R) development is expected to be justover £10 million, and investment in other technology development is anticipatedto be approximately £5 million. Anticipated administrative expenses ofapproximately £28 million include employment-related restructuring costs of £3million and a charge relating to the impairment of a lease of around £2 million.Operating costs are estimated to be £7 million, reflecting higher amortisationcharges on patents and increased litigation expenditure. Net liquid funds atperiod end are estimated to be £28 million, which the Board considers sufficientto fund BTG's ongoing operations as the Group progresses towards profitability. Recent progress in the life sciences portfolio includes the US launch ofCOMBUNOX(TM) (Oxycodone HCl and Ibuprofen) by Forest Laboratories, Inc. BTG hasreceived several milestones from Forest, including $4.5 million following USapproval of COMBUNOXT(M) for the short-term management of acute, moderate tosevere pain in November 2004. BTG will also receive future royalties based onForest's sales. In addition, BTG has assigned the COLAL(R) colonic drugdelivery patents and know-how to Alizyme plc for a consideration of £1.3 milliontogether with other patents for £75,000 plus royalties on any sales of resultingproducts. As announced on 27 January 2005, BTG's subsidiary Provensis completed theprogramme of studies aimed at enabling resumption of the US clinical developmentof Varisolve(R) as a treatment for varicose veins. Since then, the company hasprogressed commercial discussions with potential partners and the submission ofa complete clinical hold response to the US Food and Drug Administration (FDA).A further announcement will be made following review of the data by the FDA. BTG is continuing the strategy review announced mid-year and will present theBoard's conclusions, together with full Preliminary Results for the year ended31 March 2005, on 26 May 2005. - Ends - Notes: The Preliminary Results statement will be issued at 7:00 am on 26 May 2005, anda presentation to analysts at 9:30 am will be broadcast live via the company'swebsite http://www.btgplc.com/. For further information contact: BTG Financial DynamicsAndy Burrows, Director of Investor Relations Ben Atwell/Lucy Briggs+44 (0)20 7575 1741 +44 (0)20 7831 3113 About BTG BTG creates value by investing in intellectual property and technologydevelopment, and in early stage ventures. We realise value through technologylicensing, patent assertion and sale of equity investment. Through amultidisciplinary approach, we apply intellectual property and commercialexpertise, together with specialist skills in science and technology, to createmajor product opportunities in the health and high tech sectors. BTG hascommercialised important innovations, including Magnetic Resonance Imaging,Multilevel Cell Memory, Campath(R) (alemtuzumab), the first monoclonal antibodytreatment for chronic lymphocytic leukaemia, and recombinant Factor IX bloodclotting protein. BTG operates through wholly owned subsidiaries BTGInternational Ltd and BTG International Inc in the UK and USA, respectively. Forfurther information about BTG, please visit www.btgplc.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BTG