LONDON (Reuters) - British pharmaceutical company BTG (L:BTG) said its full-year profit was dampened by investment in new products, including its Varithena varicose veins treatment in the United States.
Chief executive Louise Makin said the company was laying the foundations to create an interventional medicine business that would generate revenue of $1.25 billion by 2021.
She said Varithena, which recorded sales of 1 million pounds in seven months since it was launched in August, was on track to become a $500 million plus global franchise.
"We always said it would take two years and it's going to take two years," she said on Tuesday.
"The product feedback we are getting from the physicians and the patients is first class. We are making progress with the reimbursement companies, and we are guiding for strong growth coming there in the year starting April 2016."
The group, which also makes anti-venom treatments for snake bites, posted pretax profit of 26.7 million pounds, down 20 percent, in the year to end-March. Underlying revenue rose 21 percent to 367.8 million pounds.
Shares in the group, which reached 14 year highs in January, were trading down 4.5 percent at 748.5 pence.
Analyst Nicholas Keher at Investec, who has a "buy" rating on BTG, said profitability was slightly weaker than anticipated and the Varithena number would raise questions on anticipated growth rates,
"We think investor patience will be tested over the next three-six months and, whilst we may see some further share price weakness until the next catalyst, we are holding our nerve," he said.