Trading update

• Operating profit strong and expected to be well ahead of market expectations
• Expenses for 2021 significantly lower than expectations due to COVID-19 and good cost management. Some phasing of R&D and commercial costs expected to be carried over into 2022
• Strong cash position expected at year end
• Successful ImmunoBON launches in Germany and Austria supported by encouraging clinical data

Allergy Therapeutics plc (AIM: AGY), the fully integrated commercial biotechnology company specialising in allergy immunotherapy, today announces a pre-close trading update for the year ended 30 June 2021. The Group plans to announce its post year end trading update on 14 July 2021 and the audited preliminary results on 23 September 2021.

Financials

The Group expects operating profit for the full year 2021 to be well ahead of market expectations, with robust sales growth helped by the Euro exchange rate, reflective of a strong Group performance in challenging market conditions. ImmunoBON, the patented protein-based oral product for the general treatment of allergies, was successfully launched in Germany and Austria and, although not material to the Group sales yet, shows much potential. This potential has been further strengthened by recent encouraging clinical data.

Cost savings have been driven by COVID-19 related restrictions to travel and a reduction in scientific conference attendance, as well as delays to some commercial projects into 2022. As a result, expenses for the 2021 year are expected to be significantly lower than market expectations despite higher Brexit and compliance costs. Further, some research and development expenditure originally expected in 2021 will now be incurred in 2022, due to phasing of those costs.

The Group’s cash position at the year-end is also expected to be strong and greater than at the prior year end.

In respect of the financial year to 30 June 2022, the Group’s strategy of improving the quality of its portfolio by streamlining a number of non-differentiated older products and maintaining focus on short course subcutaneous immunotherapy (SCIT) and innovative allergy treatments, alongside the ongoing impact of COVID-19, means that net sales are expected to grow at low single digit levels at constant rates. Expenses are expected to increase above the historic long-term trend and above current market expectations due to the factors noted above in commercial projects, investments and the expected period of higher research and development activity, affecting operating margin.

Based on current assumptions, and as previously stated, the Group expects to be able to fully fund the pivotal Grass MATA MPL Phase III field studies and the exciting Phase I Peanut programme with existing cash resources and a small amount of additional debt.

Manuel Llobet, CEO at Allergy Therapeutics , stated:

“The Group has continued to perform strongly in a tough environment and I am proud of our response to the challenges presented by the ongoing COVID-19 pandemic. Our focus on developing a strong R&D pipeline has remained steadfast and we are looking forward to both the ex-vivo peanut study results and the Grass MATA MPL exploratory field study results in the early part of the next financial year – both significant milestones in the progress we are making to bring new immunotherapeutic treatments to allergy patients.”