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Biocompatibles reports good start to financial year

Published: 09:16 13 May 2010 BST

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Biocompatibles International (LSE: BII) reported it has had a good start to the financial year and that revenue in the year to date is ahead of board expectations.  It has also approved a dividend of 6.25 pence per share.

Bead Products are performing strongly and, within the Licensing division, there is good growth in sales of the Novabel cosmetic dermal filler bead. In addition, Sterling weakness has contributed to sales in both divisions.

The Surrey-based medical technology company develops drug delivery products, mainly in the field of oncology. Biocompatibles’ Oncology Products Division supplies drug-eluting bead products via distribution partners such as AngioDynamics, Terumo and Eisai. The beads allow the delivery of chemotherapy drugs directly to the tumour, which reduces side effects on healthy parts of the body.

The Licensing Division, which includes Germany-based CellMed, is developing products across broader indications, including the treatment of strokes, diabetes and obesity - in partnership with AstraZeneca (LSE: AZN) - and cosmetic treatments.

In its interim management statement relating to the period from January 1 2010 to May 12 2010, chief executive Crispin Simon commented: "The company has had a strong start to the year, with four growth drivers all making good progress: sales of Drug-Eluting Beads, sales of Novabel, the CM3 programme and the SPACE clinical trial. We are pleased with the operational and financial progress in the first quarter and look forward to paying our second annual dividend in May."

Biocompatibles generated £2.2 million of cash during the four months ended 30 April 2010, closing with cash of £35.2 million, compared with  £33 million at the end of December 2009). The €4.3 million, second instalment of a schedule of payments of €8.8 million, first announced by Biocompatibles in December 2008, was paid by AstraZeneca in January 2010. The final instalment is €1.0 million and is due on the delivery of the reports of the pre-clinical and clinical activities; not expected in 2010.

In its full-year results statement in mid-March, the group provided guidance on 2010 revenue in the range £28 million to £32 million and on closing cash of £25 million. Today it said it is its policy not to change guidance early in the year.

In March, the Oncology Products Division started the PARAGON trial in Germany, studying the Drug-Eluting Bead delivering irinotecan in combination with Cetuximab.  It is the third trial to combine Drug-Eluting Bead therapy with a systemically-delivered drug marketed by a major pharmaceutical company.

Graeme Poston, chairman of Surgery of the Liverpool, Mersey and North Cheshire Hepatobiliary Cancer Network will make a presentation on the PARAGON II clinical trial at the 2010 Annual Meeting of the American Society of Clinical Oncology (ASCO) early June in Chicago.

In the Licensing Division, the company announced in February 2010 the treatment of the first volunteer in the first Phase I clinical trial for CM3, a type II diabetes drug, under development with AstraZeneca. This trial is the first of four planned to commence in the year and has now finished recruitment. Biocompatibles plans to start the second Phase II clinical trial in late June. The clinical trial programme consists of these two Phase I and two Phase II trials.

In its full-year results statement, Biocompatibles had reported very good progress in 2009 in terms of its financial performance and progress with its strategic goals. In the twelve months ended 31 December 2009, the group demonstrated a substantial improvement in its sales performance, delivering revenue growth of 50 percent, ahead of the company’s expectations. Revenues increased by 50 percent to £26.6 million. The sales of bead products grew by 100 percent to £12.0 million.

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