Because people depend on us
Jefferies 2014 Global Healthcare ConferenceNovember 2014
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This presentation and information communicated verbally to you may contain certain projections
and other forward-looking statements with respect to the financial condition, results of
operations, businesses and prospects of BTG plc (“BTG”). These statements are based on
current expectations and involve risk and uncertainty because they relate to events and depend
upon circumstances that may or may not occur in the future. There are a number of factors
which could cause actual results or developments to differ materially from those expressed or
implied by these forward-looking statements. Any of the assumptions underlying these forward-
looking statements could prove inaccurate or incorrect and therefore any results contemplated
in the forward-looking statements may not actually be achieved. Nothing contained in this
presentation or communicated verbally should be construed as a profit forecast or profit
estimate. Investors or other recipients are cautioned not to place undue reliance on any
forward-looking statements contained herein. BTG undertakes no obligation to update or revise
(publicly or otherwise) any forward-looking statement, whether as a result of new information,
future events or other circumstances. Neither this presentation nor any verbal communication
shall constitute an invitation or inducement to any person to subscribe for or otherwise acquire
securities in BTG.
BTG and the BTG roundel logo are registered trademarks of BTG International Ltd in the US, EU and certain other territories, and are trademarks of BTG International Ltd elsewhere. CroFab and
DigiFab are trademarks of BTG International Inc. Voraxaze is a trademark of Protherics Medicines Development Ltd. LC Bead, DC Bead, and Bead Block are registered trademarks of
Biocompatibles UK Ltd. TheraSphere is a trademark of Theragenics Corporation used under license by Biocompatibles UK Ltd. EKOS and EkoSonic are registered trademarks of EKOS
Corporation. Varithena and Varithena Solutions Center are trademarks of Provensis Ltd. Protherics Medicines Development Ltd, Biocompatibles UK Ltd, EKOS Corporation, and Provensis Ltd are
all BTG International group companies. Zytiga is a trademark of Johnson & Johnson; Lemtrada is a trademark of Genzyme Corporation.
Forward-looking statements
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– Organic growth strategy targeting $1bn+ revenues
in Interventional Medicine through:
– Geographic expansion
– Product innovation
– Indication expansion
– Strong financial underpin from Specialty
Pharmaceuticals and Licensing business
– Successful track record of creating value
from acquisitions
Building a world leading specialist healthcare business
Not to scale
2014 2021
~$150m
~$170m
~$175m
Interventional
Medicine
Specialty
Pharmaceuticals
Licensing
Revenue
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Strong growth in expanded portfolio
Interventional
Medicine
Interventional
Oncology
LC Bead®,
DC Bead®,
TheraSphere®
~ $110m Annual ~15% $300m - $400m
Interventional
Vascular
EkoSonic®
Varithena®
~ $40m Annual ~20%
Single $m year 1; 2-3x in year
2; strong growth year 3 on
$100m - $200m
$500m+
Products Current growth guidance
Specialty
Pharmaceuticals
Acute Care CroFab®,
DigiFab®,
Voraxaze®
Uridine triacetate
~ $170m Mid to high single digit
Further growth potential from pipeline and M&A
Licensing
Royalties Zytiga®, Hip
Cup, others
~ $175m Not under BTG’s control
Analysts est. $2.6bn Zytiga® peak sales potential
2021 sales potentialCurrent sales*
*12 months to 31 March 2014 (annualised for TheraSphere® and EKOS)
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Highlights of recent progressStrong financial performance and execution of
growth strategy
Product Milestone achieved Strategy
Interventional
Medicine
Specialty
Pharmaceuticals
Licensing
Varithena® Launch commenced in Q2’14
First patients treated in August
Controlled launch, build
the brand
EKOS® FDA clearance to treat pulmonary
embolism
Indication expansion
DC Bead® Approved in China
Hong Kong hub openedUnlock value in Asia
TheraSphere® EU sales force established Geographic expansion
CroFab® Patent litigation settled Certainty and continuity
Zytiga® royalties
(abiraterone acetate)
Now tracking to ~$2bn worldwide Ongoing financial underpin
Lemtrada™ royalties
(alemtuzumab)
Approved in the EU (Sep. 2013)
and US (Nov. 2014)
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Financial highlights25% growth in reported revenues for H1 14/15
H1 14/15(£m)
H1 13/14(£m)
% change
Revenue 191.2 153.0 25%
Contribution 80.1 66.7 20%
Operating profit
Underlying† 56.8 46.7 22%
Reported 42.8 25.0 71%
Profit before tax 37.6 32.7 15%
Basic EPS 10.8p 6.8p 59%
Closing cash 78.0 39.8 -
†Operating profit excluding acquisition adjustments and re-organisation costs of £14.0m (H1 13/14: £21.7m)
Strong underlying growth across the business
7†Constant FX USD vs GBP ($1.68 vs $1.54 in prior year)
*Based on pro-forma 6 month revenues for EKOS and TheraSphere®
H1 14/15reported (£m)
H1 13/14 reported (£m)
Change(%)
Underlying change at constant FX† (%)
Interventional Medicine
Interventional Vascular
Varithena®0.4 - - -
EkoSonic®14.6 6.3 132% 28%*
Total Interventional Vascular 15.0 6.3 138% 31%*
Interventional Oncology
Beads 16.8 15.8 6% 15%
TheraSphere®20.0 7.0 186% 25%*
Total Interventional Oncology 36.8 22.8 61% 21%*
Total Interventional Medicine 51.8 29.1 78% 24%*
Specialty Pharmaceuticals
CroFab® 49.1 49.7 (1%) 8%
DigiFab® 21.9 15.3 43% 54%
Voraxaze® / Other 6.8 4.8 42% 52%
Total Spec Pharma 77.8 69.8 11% 21%Licensing
Zytiga® 50.6 41.7 21% 31%
Two-Part Hip Cup 5.8 6.3 (8%) -
Others 5.2 5.4 (4%) (2%)
Total Licensing 61.6 53.4 15% 24%
Total 191.2 152.3 26% 23%*
Non-recurring (Brachytherapy) - 0.7 - -
Total 191.2 153.0 25% 23%*
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Investing for growthBuilding our commercial capability and pipeline
Investment area Detail Progress Comment
Commercial
expansion
H1 SG&A £55.2m
H2 SG&A guidance
c.£65m
Varithena® US launch;
first patients treated
Expanded EU direct
sales force
Asian hub and satellite
offices
Enhance capabilities and
capacity
24 reps established and
engaging with customers
25 reps hired for TheraSphere®;
adding Beads go-direct
Office opened in September,
enlarging internal capability
EKOS go-direct in UK, France;
widened EU distribution network
Innovation and
Development
H1 R&D £27.2m
H2 R&D guidance
c.£30m-£35m
Indication expansion –
TheraSphere®, Beads,
Varithena®, EKOS
Product innovation and
lifecycle management
Accelerating TheraSphere®
Phase 3 trials. Study into PTS
and chronic DVT for EkoSonic®
Radiopaque bead, Bioresorbable
bead
DVT = deep vein thrombosis, PTS = post thrombotic syndrome
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Interventional Vascular: Varithena®
Building a $500m+ franchise
Controlled US launch creates the platform to maximise growth
opportunities in other market segments
Patient acquisition strategies to maximise potentialControlled launch
Development of US self pay market
Aesthetic Leg Vein
Other venous indications
2014 2016 2021
RoW expansion
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– Reps recruited, trained and have
developed comprehensive customer
maps of their territories
– Prioritising high-volume clinicians with
strong interest in using Varithena® as a
comprehensive treatment
– Physician qualification process involves
online training, video review, patient evaluations
– First commercial treatment in August 2014
– Reimbursement support provided
– Objective is to ensure a great customer and patient experience every
time
Interventional Vascular: Varithena®
On track with launch in the US reimbursed sector
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– Positive early signs
– Great feedback
Interventional Vascular: Varithena®
A compelling treatment proposition
“We achieved a flush and complete ablation of the vessel. In this particular patient, with
a history of SVT*, other interventional options were limited. I think this is a tremendous
advantage for Varithena® and a coup for the entire BTG team”— Kenneth L. Todd III, MD
Southeast Vein and Laser Center, Alabama
“Varithena® will have a significant positive impact in our practice in multiple ways.”— Tony Gasparis, MD
Stony Brook Vein Center, NY
“Varithena® will simplify the treatment of varicose veins” — Nicos Labropoulos, PhD
Stony Brook's Non-Invasive Vascular Laboratory, NY
*SVT = Supraventricular tachycardia
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Controlled launch“Go slow, to go fast”
- Supporting physicians throughout the reimbursement process
- Dedicated team of reimbursement and coding experts
- Payer education and familiarisation with Varithena®
Varithena Solutions Center™
Map customer
territories
Register and
complete online
training
Complete
evaluation with x3
full GSV patients
BTG Clinical
Specialist present
Qualified
Customer
On track
for 200
physicians
by 31/3/15
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Interventional Vascular: EKOSLeading product in an underpenetrated market
DVT = deep vein thrombosis, PTS = post thrombotic syndrome
Geographic expansion
– EKOS installed in less than ½ of potential US Institutions
– Europe: growing direct sales force in UK and France;
expanding distribution networks in other EU territories
Indication expansion
– Cleared for use in pulmonary embolism by the FDA in
May 2014
– Ongoing clinical trial to investigate treatment of chronic DVT
and PTS
Product innovation
– New hardware to address bilateral cases and ease of use
– New device technology to increase speed and reduce lytic
doses
– Improving power, functionality whilst reducing size
Intelligent Drug Delivery Catheter
Ultrasound Core Device
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Interventional OncologyA patient-centric approach to treatment
H1 progress
US: combined Beads and TheraSphere®
sales force gaining traction and delivering
strong growth
EU: TheraSphere® sales force established;
begin selling DC Bead® from April 2015
Asia: DC Bead® approved in China in
August 2014; Taiwan direct sales force
established; developing regulatory strategy
for TheraSphere®
Future growth drivers
Geographic expansion:
– Asia growth and China strategy
Indication expansion:
– TheraSphere® Phase 3 trials
– R&D programmes guided by input from
KOLs
Product innovation:
– Radiopaque bead, bioresorbable bead
– Proprietary drug-loaded bead
2014 2021
Unique offering of both main locoregional treatment modalities creates a
compelling patient-centric franchise
Ongoing delivery
– CroFab®
– Settlement of patent litigation secures leadership position
– DigiFab®
– Strong growth from geographic expansion and raising profile
– Voraxaze®
– On track for third year of double digit growth
Growth potential
– Unique sales force with in-depth knowledge of the US emergency rooms
– Uridine triacetate designated for fast track status by FDA
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Specialty PharmaceuticalsStrong performance from cash generative portfolio
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Licensing Solid financial underpin from growth in Zytiga®
Zytiga® (abiraterone acetate)
– Strong growth, now tracking to ~$2bn annual sales
– Stable market position vs. competitors
– Geographical split approximately 55% RoW : 45% US sales
– Analyst estimate peak sales potential ~$2.6bn
Lemtrada™ (alemtuzumab)
– sBLA approved by US FDA November 2014
– Approved in the EU September 2013
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– Strong business performance
– Executing on growth strategy:
– geographic expansion, indication expansion, product innovation
– Increasing investment across multiple platforms
– Controlled launch of Varithena® in the US reimbursed sector on track
– Expanding Interventional Oncology franchise further into Europe and Asia
– Strong performance from EKOS and TheraSphere® demonstrates successful
acquisition and integration
– FY revenue guidance now expected around upper end of £330m-£345m
range despite currency headwinds
– On track with delivering on our vision to become a leader in Interventional
Medicine with revenues >$1bn by 2021
Summary