Advancing on all fronts
BTG (LONDON:BTG) will report another good year of organic growth in FY15 supported by acquisitions, with all of its divisions expected to report double-digit growth. During the year, BTG has also strengthened its key interventional medicine (IM) division with the acquisition of PneumRx in January, and development of its interventional oncology (TheraSphere/Beads) sales force, so that it is well placed to sustain its strong growth. We value BTG at £3.31bn.
Foundations for sustained growth of IM franchise laid
We forecast that revenues from BTG’s interventional medicine will grow by 53% to £121m in FY15, with half the growth from acquisitions. As important as the financial performance were the investments made to support the long-term growth of the division. The controlled launch of Varithena is progressing as planned, with encouraging feedback reported. The expansion of the US salesforce to sell TheraSphere and Bead products together is already paying off, and BTG recently started to sell both treatment modalites direct to physicians in 11 European countries without using distributors.
All SP products performing well
The specialty pharmaceutical (SP) division has also had a good year, thanks to a solid snake season for CroFab, geographic expansion of DigiFab sales and increasing awareness of the benefits of Voraxaze for methotrexate toxicity. Overall, we estimate that the division’s sales will increase by 10% to £112m in FY15.
Licensing revenues continue to benefit from Zytiga
J&J’s Zytiga continues to be the key royalty generator and growth driver for the licensing revenues. Supported by the prostate cancer drug’s revenues growing by 20% during the year to December, we forecast that in FY15 total licensing sales will rise by 13% to £96m.
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