2nd Apr 2007 07:01
BTG PLC02 April 2007 BTG plc: Close Period Update London, UK, 2 April 2007: BTG plc (LSE: BGC), the medical innovations company,today announces the following update for the year ended 31 March 2007 ahead ofthe planned publication of its Preliminary Results on 24th May 2007. As anticipated in its interim results announcement, the Company expects toreport for the year an increase in recurring royalty revenues, furtherreductions in operating and administrative costs and good progress incommercialising non-core assets and building value in the development pipeline. Net recurring royalty revenues are anticipated to be around 5% higher than the£23m achieved last year at approximately £24m. The £2.6m of net one-off revenuesand gains reported in the first half of the year will be supplemented by someadditional small deals and the revenues received from licensing certain patentrights to Fresenius in December 2006. Investment in research and development is anticipated to be £10m to £12m, inline with expectations. Administrative and operating expenses for the year areexpected to be significantly below the target of £22m set in last year's annualreport. Cash at 30 September 2006 was £43m and the outflow during the secondhalf is forecast to be low single digit millions of pounds. BTG's internal pipeline has been strengthened in the year through developmentprogress and in-licensing. Two drug programmes were acquired during the year: anovel opioid agonist for the control of post-operative pain, and a targetedoncology drug with potential in a number of solid tumour types. Both programmesare progressing through preclinical development and are expected to enterclinical studies in 2008. The Varisolve(R) Phase II safety study is proceeding to plan. Seven centres areexpected to participate in the study, which will end when 50 patients withsevere varicose veins and circulating arterial bubbles (owing to a connection inthe heart that can allow bubbles to pass from the venous to the arterial system)have been treated and monitored using MRI scanning. The first centre is nowrecruiting patients and initial training patients were treated in March 2007 asplanned. The Phase I/II results of a trial of plevitrexed in gastric cancer werepresented in January 2007, demonstrating promising single-agent activity foradvanced gastric cancer patients who cannot tolerate multi-drug combinations.BTG is now seeking to partner plevitrexed. The Phase I study of BGC20-1259, targeting Alzheimer's disease and age-relateddisorders, was completed in which 63 young and elderly volunteers receivedsingle or multiple ascending drug doses. BGC20-1259 was well tolerated anddemonstrated the expected pharmacological profile. Recruitment of subjects continued for a proof of concept study of BGC20-0166, acombination of two serotoninergic compounds, as a pharmacological treatment forsleep apnoea. Enrolment is due to finish in mid-2007. Preclinical development continued for BGC945, a novel thymidylate synthaseinhibitor that is taken up into cancer cells preferentially via the alpha-folate receptor, BGC20-1531, targeting migraine headache, and BGC20-0134, astructured lipid compound for the treatment of multiple sclerosis. These are allscheduled to be ready to enter clinical studies during 2007. Within our out-licensed programmes, Genzyme Corp. has continued with thedevelopment of Campath(R) in oncology and multiple sclerosis. CougarBiotechnology, Inc. reported positive Phase I and Phase II data on CB7360(abiraterone acetate) confirming the drug is clinically active in patientsreceiving hormone therapy as a second-line treatment and showing for the firsttime that it is also active in patients who have failed ketoconazole and inpatients who have failed docetaxel based chemotherapy. Tolerx, Inc. is nowfinanced to further develop the anti-CD3 monoclonal antibody TRX4 as a treatmentfor type-1 diabetes and psoriasis. Louise Makin, BTG's chief executive officer, commented: "We have achieved goodprogress within our own development programmes and are pleased to see licensedprogrammes advancing and further market penetration from the products underlyingour royalty income. We end the year in a strong financial position, confidentthat we can continue to strengthen our pipeline and create value forshareholders in the coming year." 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 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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