BTG's profits this year will be hit by a £150m impairment on the fair value of its PneumRx Coils for treating emphysema as the process of winning new business for this new product is taking longer than expected.
Although group revenue was said to be in line with expectations, with good sales growth in the core interventional medicine products, the medical technology company said development of what is a new market for the PneumRx coils, including securing appropriate levels of health insurance reimbursement, was "taking longer than expected". BTG in fact does not now expect material revenues from this product over the next two years, so will take the impairment charge this year on a reassessment of the fair value of the asset, with a one-off restructuring charge of up to £10m for the subsequent year.
Management stressed their resolute belief in the "significant long-term opportunity" for the coils and said action was being taken to focus resources on key activities to build long-term value, include initiating a clinical study to generate additional European patient data and pushing for US approval by the end of 2018.
Otherwise growth in the oncology and vascular portfolios, which together represent more than 90% of interventional medicine revenues, was in the mid teens at constant exchange rates. Overall sales of the earlier-stage interventional assets were broadly flat as the slow coils development offset growth in Varithena to treat varicose veins.
In pharmaceuticals, product sales grew around mid-single digits, with licensing performing well, with single-digit revenue growth. Growth came from CroFab snake antivenom and Voraxaze, which is used for patients suffering from toxicity from certain types of chemotherapy.
Chief executive Louise Makin said: "We have delivered a good performance during the year. With sustainable and diverse revenue streams, we are continuing to invest in innovation, geographic expansion, indication expansion and acquisitions. We are well positioned to continue building our interventional medicine business and delivering these strong growth rates, and to continue developing leadership positions in attractive growth markets."
Looking forward to new developments, first patients were treated with TheraSphere microscopic, radioactive glass 'microspheres' deliver a targeted radiation dose to cancer tumours, and first patients were treated with radiopaque chemo-embolising bead, DC Bead Lumi.
Regulatory clearance was won for Visual-ICE MRI, a new cryoablation system, and Galil Medical needles that are compatible with all MRI scanners, enabling the first systems to be installed with customers.
Data from the first year of the Optalyse pulmonary embolism trial of the Ekos system reinforced the safety and efficacy of shorter, lower-doses of the ultrasonic waves that are used in combination with clot-dissolving thrombolytic drugs to effectively dissolve clots and restore healthy heart function and blood flow.