Halister News

(Bloomberg) -- BTG shares fall as much as 8.4%, most since July, after co. says in results statement it expects royalties to decline.

• Shares trade at GBp673.0 as of 8:56am London time, trading volume 51% of 3-month daily avg
• FY 2018 outlook is light and taxing, implies adjusted EPS ~27p-29p vs. Jefferies’s 32.3p; Bloomberg ests. 31.2p, Jefferies analysts Peter Welford and Lucy Codrington write in client note
  • Rates stock Buy, PT GBp775
• Results are in line, but “no fireworks,” Cantor analysts Brian White and Paul Taylor wrote in client note 
  • Mark another year in company’s “assiduous march toward its aspiration of becoming a leading Interventional Medicines business”
  • Progress for Varithena remains lackluster, hampered by U.S. “less than optimal” reimbursements
  • Rates stock Buy, PT GBp800
• Strong results point to improving outlook, confirm that BTG is building into a substantial medtech company, Panmure analysts Julie Simmonds and Mike Mitchell write in client note
  • Varithena showed “significant improvement,” sales likely to improve further as long-awaited reimbursement code is due to be implemented in Jan. 2018 and should prompt a further increase in growth rate
  • Mix of contribution to sales growth is expected to change as rate of Interventional Medicine revenue growth is expected to increase, Specialty Pharma grows more slowly and Licensing revenue declines
  • Rates stock Buy, PT GBp 809

--With assistance from Francesca Cinelli and James Cone. To contact the reporter on this story: Roxana Zega in Zurich at rzega@bloomberg.net To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net Eric Coleman