Investment summary

BTG has demonstrated a smooth transition to its new speciality pharma-led model over the course of 2010-2011, and is now gearing up to take over sales and marketing of LC beads in the US from 1 January 2012. Results of the three Phase III trials of Varisolve in varicose veins will be disclosed in H112, an important de-risking step. BTG is also approaching a number of important catalysts in early 2012 involving its partnered programmes, notably the outcome of a second Phase III study with Zytiga and the Phase II results of CytoFab for severe sepsis.

Last updated on 09/12/2011

Industry outlook

BTG presents a defensive growth business, whose valuation is largely underpinned by the DCF valuation of its core US speciality pharma and interventional activities, its cash and predictable royalty streams. Around 30% of our current valuation is attached to R&D programmes, including Varisolve, which are probability (or risk) adjusted and therefore may add value if successful.

Last updated on 09/12/2011