Proactive Investors - Run By Investors For Investors

Allergy Therapeutics' results not to be sniffed at

The phase II trial assessed the response from 371 patients, which revealed a statistically significant dose-response relationship from the groups receiving the medication.
Dandelion seeds scattering in the wind -meant to represent pollen.
The company's Pollinex platform is proving effective across a range of pollens.

Allergy Therapeutics plc (LON:AGY) described as “very encouraging” the results from the latest clinical study of its PQBirch204 treatment for hay fever caused by birch pollen.

The phase II trial assessed the response from 371 patients, which revealed a statistically significant dose-response relationship from the groups receiving the medication.

Allergy said the latest clinical data “reaffirmed the potential” of the company’s Pollinex platform to treat the different variants of allergic rhinitis.

Researchers also found that PQBirch204 was safe and well tolerated, while 94% of patients stuck to the dosing guidelines.

It is expected a phase III study will get underway early next year.

"The results of the PQBirch204 trial are very encouraging and they reaffirm the potential of our Pollinex platform to treat the underlying cause of allergic rhinitis,” said chief executive Manuel Llobet.

Is Allergy undervalued?

The shares, up 28% in the last year, were ahead a further 3% in early afternoon trade at 26.37p.

There is further for the stock to go, according to Panmure Gordon’s Dr Mike Mitchell.

He says the market is applying an “unduly onerous” discount to the Allergy shares, which he values at 53p.

“In itself the outcome for the Birch programme paves the way for late-stage development of that programme on track and, on a qualitative basis, the news potentially reflects an important de-risking factor for Allergy Therapeutics’ wider platform,” Mitchell said in a note to clients. 

Profitable and growing strongly

Allergy Therapeutics has a profitable core business and, as the name suggests, a number of ground-breaking allergy vaccines that trade under various brand names. Its most commonly prescribed vaccines are used to treat pollen-related allergies, particularly allergies to grasses and trees.

It has has a strong presence in Europe with established operations in Germany, Italy, Spain, Austria, Switzerland, the Netherlands and the United Kingdom, while in other markets it often makes its products available through distribution partners.

Its Pollinex Quattro vaccine for the treatment of seasonal allergic rhinitis from grass, tree or ragweed pollen allergy is already established in Europe, and the board is confident the success can be replicated in the US, where it will enjoy first mover advantage in a market potentially worth $2bn.


View full AGY profile View Profile

Allergy Therapeutics plc Timeline

Related Articles

cancer cells in blood
It’s been a tricky year for Redx, but it has come through it with a promising pipeline, cash in the bank and AstraZeneca’s former UK boss as its new chief executive
Dog skeleton with cannabis plant leaf
The company's lead drug candidate is a cannabis-derived canine pain medication.
Skin beauty
April 19 2018
In a note to clients initiating coverage on SkinBio, the joint ‘house’ broker noted that, as the skin microbiome group operates in a new therapeutic area, there is little market data in the sector

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use