Allergy Therapeutics: Interim Results

7th March 2018 | Allergy Therapeutics plc

Allergy Therapeutics plc (AIM:AGY), the fully integrated specialty pharmaceutical group specialising in allergy vaccines, announces its unaudited interim results for the six months ended 31 December 2017.

Highlights (including post period end highlights)

Financial highlights

  • Reported revenue increased by 4.4% to £42.2m (H1 2017: £40.4m) and to £40.9m at constant currency*, representing 1.3%** growth despite an abnormally weak pollen season
  • R&D expenditure increased to £5.9m (H1 2017: £3.8m) due to investment in the Grass MATA MPL Phase II and PQ Birch Phase III trials
  • 12% growth in pre-R&D operating profit to £12.3m (H1 2017: £11.1m) as a result of broad investment in the business and the strength of the euro against sterling
  • Strong cash balance of £25.8m (H1 2017: £27.8m)

Operational highlights

  • Increased market share in the German market to 14% (2017: 13%)
  • Breadth of portfolio demonstrated by strong performance from Venomil and Acarovac Plus
  • Completion of recruitment in the pivotal Pollinex Quattro Birch Phase III study for Europe
  • Completion of recruitment ahead of schedule for the Grass MATA MPL Phase II dosing trial for the US
  • Contract for scaling up the Polyvac® Peanut product signed with AGC Biologics, aiming for first in human trials in 2019
  • Acarovac Phase I trial continues with readout expected in H1 2019
  • Contract for joint development of Oralvac products in the TAV process signed with Ergomed
  • Bencard Adjuvant Systems continues to build its IP assets with microcrystalline tyrosine manufacturing process patented in key worldwide markets

Manuel Llobet, Chief Executive Officer, said:

“2018 is set to be a pivotal year for Allergy Therapeutics with the key Grass MATA MPL Phase II trial on course for readout in the second half of the calendar year. This could provide us the platform to expand into the lucrative US market. In the first half of this year, we continued to outperform the wider market and delivered an increase in revenue at constant currency despite an abnormally weak pollen season, demonstrating the strength of our differentiated products. This reflects the quality of the Group’s highly convenient, ultra-short course, aluminium-free therapy, enabling us to continue to gain market share.”

This announcement contains insider information for the purposes of Article 7 of Regulatory (EU) No596/2014.

* Constant currency uses prior year weighted average exchange rates to translate current year foreign currency denominated revenue to give a year on year comparison excluding the effects of foreign exchange movements. See table in financial review for an analysis of revenue.

** Percentage based on figures in thousands (2017: £40.956m, 2016: £40.427m)