BTG still mulling WellStat appeal, US Medicaid fees confirmed

Healthcare company BTG has taken £55.3m hit after the final ruling in its patent dispute with WellStat Therapeutics went against the company, while in other news on Monday it confirmed US Medicaid fees for its varicose vein treatment.

A Delaware court confirmed its September ruling that BTG has breached the distribution agreement relating to the commercialisation of Vistogard and as a result the distribution agreement has been terminated, with Wellstat entitled to damages of $55.8m plus interest and costs.

BTG, which anticipated the imminent return of all rights to Vistogard to Wellstat, said it was continuing to consider an appeal.

Pending the outcome of any appeal, BTG will make a £53.5m provision in its results for the six months to 30 September to cover the damages and estimated interest plus costs at that date.

Meanwhile, the Medicaid fees for BTG's Varithena varicose vein treatment was published by the US Centers for Medicare and Medicaid Services, which will be applied from 1 January to reimburse a physician on a fee-for-service basis as part of the Medicaid system that provides coverage for those on low incomes.

The fee schedule details payments for conducting Varithena treatments in a doctor's surgery setting will be $1,624.30 for a single vein and $1,697.02 for multiple veins.

"We believe the new CPT codes are appropriate and have the potential to underpin our current expectations for the product," said BTG chief executive Louise Makin.

"However, we must wait and see how they impact physician adoption and insurer practices, and we should have a better understanding of that by the end of 2018."

Shares in BTG fell 3.9% to 748.5p on Monday morning.