BTG PLC (LON:BTG), saw its shares ease lower today after it said it has been ordered to pay damages of US$55.8mln plus interest and costs to Wellstat Therapeutics in a dispute over the distribution of Vistogard, an antidote to the overdose of two chemotherapy drugs.
The FTSE 250-listed global healthcare specialist said a court in Delaware had issued the ruling in a case concerning the commercialisation of Vistogard, finding that the British company had breached the distribution agreement.
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In a brief statement the group said: “BTG is surprised and disappointed by the Opinion and is considering options, which include appealing the ruling and level of damages awarded.”
In late afternoon trading, BTG shares were off lows, however, down just 0.2% or 1.5p at 665.5p.
In a note to clients, analysts at Numis Securities said: “The $55.8m settlement equates to 20% of BTG's net cash resources and makes little difference to forecasts or valuation. The shares trade on less than 19x ex-cash P/E and remain good value in our view.”
They repeated a ‘buy’ rating and 900p price target on BTG shares.
-- Adds broker comment, updates share price --