Companies: BGC   

Drug developer BTG has lifted interim profits from £1.7 million to £15.2 million pre-tax and predicts 'significant' second-half milestones.

The fully listed company, which increased profits 70 per cent to £2.6 million in the year to March after losing £35 million in 2004/05, more than doubled net revenues to £27.2 million in the six months to September. BTG, which licenses, develops and commercialises drugs in neuroscience and oncology (cancer), says non-recurring items, such as licensing deals, contributed £15.1 million to net revenues. This figure is up from £300,000 a year previously, with operating and administrative costs £200,000 down at £8.9 million.

The company ended March with increased cash of £46.6 million and chief executive officer Louise Makin expects to chalk up some important development milestones before the end of the financial year. BTG already stands to receive an initial £5 million plus half of all future milestone payments from an alliance struck last month between its US licensee Tolerx and pharmaceutical giant GlaxoSmithKline. The alliance will develop and commercialise BTG’s TRX4 product to combat Type 1 diabetes and various inflammatory diseases.

The company has high hopes for its Varisolve microfoam treatment for varicose veins and venous stasis ulcers and says the crucial US Phase 11 safety study is 'progressing as planned'. BTG says Phase 1 studies of its Alzheimer’s disease treatment were successfully completed and hopes it will go into a Phase 11 study in the second half of next year.

BTG shares, which fell from 231.25p in September 2005 to 78.35p this year, now stand at 116.75p, up 4p this morning, valuing the company at £178.2 million. If Varisolve, TRX4 and other products turn up trumps, they should recover further.

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BTG	LSE	£226.14m	149.50p	1.00p
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