BTG returns to the black

Healthcare group BTG returned to the black and posted a 77 per cent increase in full year revenue after higher than expected royalties at its licensing and biotechnology businesses.

Revenue for the year ended 31 March 2012 increased to £197.0m from £111.4m the previous year. It expects revenue for the year ended 31 March 2013 to be in the range of £180m to £190m.

The group posted a pre-tax profit of £23m compared to a loss of £10.8m the year earlier. Operating profit before acquisition adjustments and reorganisation costs rose to £54m from £1.7m previously.

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Commenting on the group's progress, chief executive officer Louise Makin said: "We have delivered a strong performance and demonstrated significant financial and operating progress. We expanded our US commercial operations and are now selling all of our Specialty Pharmaceuticals and Interventional Medicine products directly in the US."

It added that following the positive Phase III trial results, it is aiming to submit its Varisolve new drug application in the US at the end of 2012.

"With strong cash generation and significant pipeline opportunities, we are well placed to continue implementing our growth strategy," Makin added.

BTG said it has started the new financial year in a strong position, confident of continuing to deliver further profitable growth in the medium term.

Cash and equivalents, together with cash on fixed term deposits, stood at £111.9m at 31 March 2012 compared to £73.9m in 2011.

Looking ahead, BTG said the Specialty Pharmaceuticals operating segment is expected to see benefits from the commercial launch of Voraxaze in the current financial year.

Operational progress has continued at pace, with the first full year of direct CroFab and DigiFab sales generating increases in end-market volumes as well as the launch of its second direct sales force on 1 January 2012 for the LC Bead in the US. It has also had positive results from the PEM Phase III clinical trials.

CJ