Healthcare company BTG PLC (LON:BTG) said its full year results will be hit by a £150mln impairment charge on the fair value of its PneumRx Coils, a product used to treat emphysema.
In a trading update, the group said sales of PneumRx Coils were lower in the year ended March 31 as market development, including securing reimbursement, has taken longer than expected.
BTG does not expect material revenues from the product over the next two years.
“We believe there is a significant long-term opportunity for the Coils and are taking action to focus resources on key activities to build long-term value,” the company said.
“These include initiating the ELEVATE clinical study to generate additional data to support market development, and progressing the premarket approval application in the US, where an advisory committee panel meeting is expected during the summer with potential approval by the end of 2018.”
Along with a £150mln impairment, the 2018/19 results will include a one-off restructuring charge of up to £10mln.
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Shares fell 11% to 586p in afternoon trading.
Revenue in line with expectations
However, the company said revenue was in line with its expectations.
It also achieved “very good growth” in interventional medicine product sales, driven by “mid-teens” growth at constant exchange rates in the oncology and vascular portfolios, which represent more than 90% of revenue in this division.
Sales of earlier-state interventional medicine assets were broadly flat at constant currencies as a decline in PneumRx Coils offset growth in varicose veins treatment Varithena.
The pharmaceuticals business was boosted by strong performances from snake antivenom CroFab and kidney treatment Voraxaze.
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In licensing, royalties from Zytiga “grew significantly” after new data supported earlier use in patients with advanced prostate cancer.
"We have delivered a good performance during the year,” said chief executive Louise Makin.
“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."