Final results. For the year ended 31 March 2018

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1 Final results For the year ended 31 March 2018

2 Forward-looking statements This presentation and information communicated verbally to you may contain certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of BTG plc ( BTG ). These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Any of the assumptions underlying these forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the forward-looking statements may not actually be achieved. Nothing contained in this presentation or communicated verbally should be construed as a profit forecast or profit estimate. Investors or other recipients are cautioned not to place undue reliance on any forward-looking statements contained herein. BTG undertakes no obligation to update or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events or other circumstances. Neither this presentation nor any verbal communication shall constitute an invitation or inducement to any person to subscribe for or otherwise acquire securities in BTG BTG International Ltd. All rights reserved. Imagine where we can go., BTG and the BTG roundel logo are trademarks and/or registered trademarks of BTG International Ltd. Bead Block, DC Bead, DC Bead LUMI, LC Bead, LC Bead LUMI, LUMI, βeta and Simplicit90Y are trademarks and/or registered trademarks of Biocompatibles UK Ltd. EKOS is a trademark and/or registered trademark of EKOS Corporation. GALIL is a trademark and/or registered trademark of Galil Medical Ltd. PneumRx is a trademark and/or registered trademark of PneumRx, Inc. TheraSphere is a trademark and/or registered trademark of Theragenics Corporation used under license by Biocompatibles UK Ltd. Varithena is a trademark and/or registered trademark of Provensis Ltd. CroFab and DigiFab are trademarks and/or registered trademarks of BTG International Inc. Vistogard is a trademark and/or registered trademark of Wellstat Therapeutics Corporation. Voraxaze is a trademark and/or registered trademark of Protherics Medicines Development Ltd. Lemtrada is a trademark and/or registered trademark of Genzyme Corporation. Zytiga is a trademark and/or registered trademark of Johnson & Johnson. Biocompatibles UK Ltd, EKOS Corporation, Galil Medical Ltd, PneumRx, Inc., Protherics Medicines Development Ltd, and Provensis Ltd are all BTG International group companies 2

3 A scalable, sustainable high-growth business Delivered good financial performance and operating progress in 2017/18 Executed 10yr plan to transition from royalties to a product sales business Built fast-growing Interventional Medicine business and resilient Pharmaceuticals business Reinvesting in organic development and acquisitions to drive sustained high growth 3

4 We have built a strong product sales business 1600 relaunch Avg. number of employees launch Source: BTG Annual Reports

5 Our journey to sustained profitable growth Business transformation Built a cash-generative, resilient Pharmaceuticals business Created fast-growing, highquality Interventional Medicine business with leading Oncology and Vascular portfolios Investments in commercial expansion, clinical data and innovation to drive growth Financial transition Delivering product sales growth around double-digits Leveraging infrastructure to expand product sales operating margin Continuing to invest in organic development and external opportunities Sustained profitable growth Continued/enhanced organic product sales growth Accelerated growth from pipeline delivery and ongoing investment in R&D, acquisitions 5

6 Financial results Duncan Kennedy 6

7 Double-digit growth in product sales and adjusted operating profit 2017/18 ( m) 2016/17 ( m) Actual % CER 1 % Product Sales % +10% Licensing % +9% Revenues % +10% Adjusted Operating Profit % +20% Adjusted Operating Profit Margin 25% 23% Adjusted Basic EPS p 23.1p +42% Free Cash Flow % 7 1 Constant exchange rate ( CER ) growth is computed by restating 2017/18 results using 2016/17 foreign exchange rates for the relevant period. 2 Further detail on the adjustments to IFRS financial measures is included in the preliminary announcement. 7

8 One-time items impact IFRS results +55% Adjusted EPS 32.9p (24.7) 6.4 (11.2) (0.9) (7.4) (0.6) 9.4 IFRS EPS 3.9p IFRS results benefit from a net credit of 36.2m relating to the introduction of US tax reform 8

9 Oncology and Vascular businesses drive Interventional Medicine growth 2017/18 ( m) Growth at CER Drivers of 2017/18 performance High Growth Interventional Oncology % Strong TheraSphere performance and expansion of cryotherapy Interventional Vascular % Continued EKOS US penetration and increased treatment of PE Early Stage % PneumRx Coils 6.8 (29%) Fewer procedures in Germany Varithena % Continued progress before and subsequent to CPT code Total IM % Pharmaceuticals % Strong CroFab and Voraxaze, low DigiFab batch expiry year Product Sales % 9 9

10 Licensing: very strong performance from Zytiga complemented by Lemtrada back-royalties 2017/18 ( m) 2016/17 ( m) Growth Growth at CER Zytiga % +30% Lemtrada (44%) (49%) Other royalties (7%) (5%) Licensing % +9% Continued contribution from Zytiga with a very strong performance in 2017/18: No generic entrant expected in the US before October 2018 No generic entrant expected in Europe before September 2021 Lemtrada royalties ceased in H1 17/18 due to licence expiration; final back-royalties of 11m 10

11 Strong free cash flow and funding position 2017/18 ( m) 2016/17 ( m) Actual % Free Cash Flow % Acquisition of Roxwood Medical (43.6) - Acquisition of Galil Medical - (55.1) Other investing and financing (2.4) (0.4) FX impact on cash flows (8.8) 5.9 Net Cash Flow Cash and cash equivalents of 210m at 31 March 2018 Provision of 53.9m for Wellstat litigation; not yet paid as appeal ongoing Strong and flexible funding position, with new facility of up to 300m 1 currently undrawn 11 1 RCF of 150m, with the option to extend by a further 150m.

12 Disciplined capital allocation to drive sustained long-term growth Investing in innovation and development Sustained product sales growth and free cash flow generation Clinical trials and studies: TheraSphere (STOP-HCC, EPOCH) EKOS (ACCESS PTS & OPTALYSE) Cryoablation (MOTION, SOLSTICE) ~25% ~75% - Commercial expansion - Innovation - Clinical data - Acquisitions Adjusted R&D 95.3m in 2017/18 Excluding TheraSphere late stage Phase III trials 1 underlying R&D ~ 70m Additional R&D would drive incremental returns 12 1 Late stage Phase III trials for TheraSphere (EPOCH & STOP-HCC) with data by 2019

13 Outlook for 2018/ /19 CER outlook 1 Comment Interventional Oncology and Interventional Vascular Pharmaceuticals 13-15% sales growth Continued very good growth Flat-to-single digit (%) sales decline High 2017/18 base (incl. Vistogard ) and potential CroFab competition from Oct 2018 Gross margin 70% 72% Product sales gross margin: 76% 78% Royalties gross margin: 50% Adjusted SG&A and R&D Flat-to-single digit (%) decline Adjusted effective tax rate 2 18% 21% Lower rate following US tax reform Restructuring charge for PneumRx of up to 10m, will be excluded from adjusted earnings Capex expected to increase to ~ 20m Reporting in USD from H1 2018/ The average USD/GBP rate for the year to 31 March 2018 was $ Adjusted effective tax rate is not prepared in accordance with IFRS. Further detail on the adjustments to IFRS financial measures is included in the preliminary announcement.

14 Product sales business is well positioned to deliver future growth and leverage 2017/18 Total ( m) Licensing ( m) Product Sales ( m) Medium-term product sales outlook Revenues Growth at CER +10% +9% +10% Product sales around double-digit CER growth, driven by IO and IV Gross Profit Gross Margin 70% 51% 79% Strong sustainable product sales gross margin Adjusted operating costs Disciplined commercial investment R&D ~ 70m excluding STOP-HCC and EPOCH Adjusted Operating Profit Adjusted Operating Profit Margin 25% 51% 12% Operating leverage over time US tax reform has lowered our medium-term outlook for the group adjusted effective tax rate to 22 26% 14 1 Adjusted operating costs represent adjusted SG&A and R&D, and 1.3m other operating expense. 14

15 Financial summary Delivery of double-digit product sales growth in 2017/18 Disciplined cost control actions taken in 2017/18 Commitment to invest in commercial expansion, R&D and acquisitions Robust financial position supporting sustained, profitable growth 15

16 Operational update Louise Makin 16

17 Annual sales ( m) Built a resilient Pharmaceuticals business Strong cash generation, efficient infrastructure m 1 Direct acute care US sales force, distributors RoW 150 Investments in manufacturing, sales and marketing, data m Products sold in US only through a distributor Built CroFab barriers: expanded label (copperhead bites), brand leadership and trust (algorithm, digital app, c. 60,000 patients treated safely and effectively) Label and geographic expansion for DigiFab CroFab DigiFab Voraxaze Voraxaze approved and growing strongly, Oncology sales team established 17 1 Excluding Vistogard sales

18 Developing leadership positions in IM Multiple investment opportunities Product innovation Adding clinical data / indication expansion Commercial and geographic expansion 18

19 Product innovation BTG ablation technology Invested to expand capability, footprint and capacity at Galil now a center of excellence in ablation and device engineering for BTG BTG has produced the only MRI compatible cryoablation system increasing interest in MRI guided procedures MRI enables better visualisation of the tumour and ablation zones allows for more precise treatment CT ablation system upgrades enable treatment of more patients smaller, lighter system with software upgrades designed around the IR longer needle shafts for patients with deep-seated tumours New ablation modality complementary system for tumour ablation in development 19

20 Commercial / geographic expansion Increasing TheraSphere procedures worldwide <200 hospitals 2 distributors c.30% revenue CAGR growth drivers: N.Am. and EU sales forces TARGET study βeta Radiation Safety Programme Simplicit90Y dosimetry software >600 hospitals >2.5x increase in procedures 11 distributors 9 new territories since growth drivers: STOP-HCC EPOCH IIS programme IO 2 Further geographic expansion

21 Indication expansion (I) Radiation segmentectomy with TheraSphere Using TheraSphere to develop new procedures in the fight against liver cancer A novel technique that delivers high doses of 90 Y radiation to destroy tumours while sparing the surrounding healthy tissue Showing promise as a curative treatment option for patients with early-stage liver cancer 1 "We want to minimize the time from clinic visit to treatment, and fine-tune dosimetry so that we can find the optimal dose that will kill the tumor. In the right patient setting, radiation segmentectomy can be considered curative." Riad Salem, M.D. Chief of Vascular Interventional Radiology at Northwestern University Feinberg School of Medicine in Chicago 21 1 "Radiation Segmentectomy: Potential Curative Therapy for Early Hepatocellular Carcinoma" Radiology, 2018

22 Indication expansion (II) Building our EKOS business through pulmonary embolism leadership c.30% revenue CAGR >80% US hospital penetration Doubled sales reps - national US sales force <50% US hospital penetration growth drivers: National US sales force ULTIMA and SEATTLE II studies US 510(k) PE clearance growth drivers: OPTALYSE PE one-year trial results cementing leadership in treating PE KNOCOUT PE registry study measuring adoption and benefits of new PE standard of care regimen Ongoing geographic expansion Specialty crossing devices

23 Early-stage products Milestones to build long-term value Initiating ELEVATE study - Prospective study with 200+ patients to confirm patient responder profile - Progressing reimbursement activities in EU Progressing US PMA - FDA Ad Com Meeting in summer 2018 Renewed physician interest since dedicated CPT codes implemented in January 2018 Focusing on evaluations, orders and reorders by high-volume vein practices 23

24 Progress and priorities Interventional Oncology Interventional Vascular PneumRx Coils FY 2017/18 progress Recruitment into TheraSphere STOP HCC complete First patients treated with TheraSphere in Lat. Am., Taiwan, Israel; DC Bead LUMI launched in EU Regulatory clearance for new MRI compatible cryoablation system Completion of MOTION and SOLSTICE studies OPTALYSE PE and ACCESS PTS studies completed; positive 12 month data from OPTALYSE PE First PE patient in China treated with EKOS Focused on building long-term value: initiated ELEVATE study and reduced cost base FY 2018/19 priorities Complete recruitment in TheraSphere EPOCH trial Expand offering in Latin America Progress TheraSphere registration in Asian markets Launch of LC Bead LUMI M0 in the US; expand DC Bead LUMI into Asia Data analysis from MOTION and SOLSTICE Build US PE/DVT business; develop existing RoW business and expand into new territories Launch new EKOS control unit Progress KNOCOUT PE registry Progress ELEVATE study recruitment Complete US PMA process Ad Com in summer 2018 Varithena New CPT codes established, physicians and insurers converted from interim codes Increase evaluations, orders and reorder rates in high-volume vein practices; further expand insurance coverage Pharmaceuticals Label expansions delivered for CroFab, Voraxaze Maintain CroFab leadership position Further enhance Voraxaze value proposition 24

25 Scalable platform for sustained, long-term growth Diverse revenues and strong cash generation IM & Pharmaceuticals businesses delivering around double-digit product sales growth Potential to accelerate growth through investments and acquisitions Clear strategy to deliver sustained, profitable growth 25

26 26 Questions

27 27 Appendix

28 Reporting in USD from 2018/19 onwards These results are the last to be reported in GBP Starting with our Interim Results in November, we will report in USD In June 2018 we will publish historical financials restated to USD 28