# BTG plc Operating profit grew 35% to $178.5m

- Link: https://www.directorstalkinterviews.com/btg-plc-operating-profit-grew-35-to-178-5m/412761254
- Published: 2018-11-13T07:53:04+00:00
- Author: Charlotte Edwards

**BTG plc** (LON: BTG), the global healthcare company, today announced its Interim
Results for the six months ended 30 September 2018.

> **Louise Makin, CEO of BTG, commented:** “I am pleased to report that in the first
> six months we have delivered 10%1 sales growth with good operating leverage in
> our Product business and 35%1 adjusted operating profit growth for the Group. 
> The second half of the year has started well. We reiterate our full-year guidance
> for Interventional Oncology and Vascular sales and upgrade our Pharmaceuticals
> sales guidance following a good H1 performance and a very strong October for CroFab
> ®.
> During the period we have provided further clarity on Varithena®, PneumRx and 
> Zytiga®, launched two new products, acquired Novate Medical and completed several
> strategic partnerships and pipeline milestones.
> In Interventional Oncology, our TheraSphere® EPOCH trial is now fully enrolled.
> We have progressed several internal programmes and external collaborations designed
> to build an integrated offering in lung cancer diagnosis and treatment. In our
> Vascular portfolio, launch activities are underway for Sentry, our new IVC filter.
> Our Pharmaceuticals business has delivered good growth in the first half. We expect
> CroFab® to maintain its market leadership following the introduction of a different
> antivenin. We are exploring indication expansion and other opportunities to enhance
> growth in this business.
> Our growth strategy is delivering. We remain ambitious to use our strong financial
> resources to augment this positive organic momentum with further investments and
> acquisitions to deliver on our vision of being a world leader in Interventional
> Medicine, transforming patient care and creating significant long-term value for
> our stakeholders.”

**Financial highlights**

  |

 |

 |

H1 2018/19

($m)

  |

H1 2017/18

($m)

  |

Growth

(%)

  |

Growth at CER^(1) (%)

  |  
 |

 |

 |

 |

 |

 |

 |  
 |

Product sales

  |

 |

340.2

  |

310.4

  |

10%

  |

10%

  |  
 |

Licensing revenues

  |

 |

155.5

  |

131.8

  |

18%

  |

18%

  |  
 |

Total revenues

  |

 |

495.7

  |

442.2

  |

12%

  |

12%

  |  
 |

 |

 |

 |

 |

 |

 |  
 |

Adjusted operating profit^(2)

  |

 |

178.5

  |

128.1

  |

39%

  |

35%

  |  
 |

IFRS operating profit

 

  |

 |

97.6

  |

21.8

  |

348%

  |

 |  
 |

Adjusted basic EPS^(2)

  |

35.9c

  |

27.3c

  |

32%

  |

 |  
 |

IFRS basic EPS

 

  |

 |

20.0c

  |

17.8c

  |

12%

  |

 |  
 |

Free cash flow^(2)

Net cash flow from operating activities

  |

37.2

48.7

  |

96.0

100.6

  |

(61%)

(52%)

  |

 |

1.     Constant Exchange Rate  growth is computed by restating 2018/19 results using
2017/18 foreign exchange rates for the relevant period.

2.     Certain financial measures in this press release, including adjusted operating
profit, adjusted basic EPS and free cash flow are not prepared in accordance with
IFRS. All adjusted financial measures are explained on page 24 and are reconciled
to the most directly comparable measure prepared in accordance with IFRS on pages
25 to 27.

 

· Product sales increased 10% at CER to $340.2m, driven by Interventional Oncology
and Interventional Vascular.

· Adjusted operating profit grew 35% at CER to $178.5m, demonstrating good operating
cost leverage. IFRS operating profit was $97.6m.

· Adjusted basic EPS grew 32% to 35.9c and IFRS basic EPS grew 12% to 20.0c at actual
exchange rates.

· Free cash flow of $37.2m was achieved after payment of $73.3m to settle the Wellstat
dispute; excluding this payment free cash flow was 15% higher at $110.5m. IFRS cash
flow from operating activities was $48.7m.

Operating highlights

Product Business – Interventional Medicine

**Oncology**

· TheraSphere® EPOCH study fully enrolled; top-line results expected by the end 
of 2019.

· Compact and user-friendly new ICEfx™ Cryoablation system launched globally.

· Completed investment in and agreed option to acquire Veran Medical Technologies,
Inc, which provides electromagnetic navigation systems for lung nodule biopsy to
aid early diagnosis and treatment of lung cancer.

· Research collaboration with Edinburgh University to combine characterisation and
treatment of lung nodules in a single flexible catheter

**Vascular**

· Acquisition of Novate Medical Ltd and its Sentry device, the first bioconvertible
inferior vena cava (IVC) filter for use in patients at high risk of recurrent pulmonary
embolism (PE).

· EKOS® Control Unit 4.0 launched in Europe.

· Strategic partnership formed with PERT Consortium™ to advance the treatment of
patients with PE.

· Positive impact on physician adoption of Varithena® following introduction of 
dedicated reimbursement codes.

**PneumRx**

· Continuing to review options for PneumRx following non-approvable decision by 
US Food & Drug Administration (FDA), including partnering or sale.

Product Business – Pharmaceuticals

· FDA approval of CroFab® shelf life extension and other product improvements; replacement
policy implemented for expired product.

**Licensing**

· Johnson & Johnson is appealing a US District Court ruling in October 2018 invalidating
the Zytiga® combination use patent.

· BTG945, a targeted drug in development for treating ovarian cancer, licensed to
Carrick Therapeutics for an upfront payment and potential future milestones and 
royalties.

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