Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Allergy Therapeutics revenues rise as hay fever portfolio cleans up

Finncap's revenue forecasts were upgraded by 6% and 7% to £72.2mln and £79.5mln for the full year 2017 and 2018 respectively.
picture of seeds
The company has an 80-year history and is no “jam tomorrow” drug development company.

Allergy Therapeutics PLC (LON:AGY)  latest news on trading demonstrated stronger than expected growth across its portfolio, according to broker Finncap.

The pollen vaccine specialist gained share in a “flat” European market as it said sales had grown strongly in its latest financial year.

The company, which has developed short course inoculations against hay fever, reported revenues were well ahead of market forecasts after strong organic growth combined with a hefty currency boost. 

Revenues for the year to June will be £64.1mln (2016:£48.5mln), comprising 15% annual growth stripping out the foreign exchange effect and 32% on an actual basis.

Over the past year, Allergy continued to gain market share in Europe through its hay fever vaccines Pollinex Quattro and Pollinex.

Allergy added research and development expenditure had also come in below market expectations due to the phasing of activity, though these costs will now be incurred in the current year.

Cash at end June was £22.1mln (£23.4mln).

 

READ: Allergy Therapeutics publishes pre-clinical data on malaria and flu vaccines

 

US trial gets underway

The company has just recruited the first patients to its phase III trial of core product Pollinex Quattro in people with a sensitivity to birch pollen.

The year-long study will take place over 50 sites in Germany, Sweden, Austria and Poland will recruit 550 patients and assess the efficacy and safety of its ultra-short course treatment Pollinex Quattro. The trial is scheduled to start in the autumn.

In the US, a Phase II Grass MATA MPL trial is also still planned to start this autumn while  patients for the Acarovac Quattro dust mite allergy Phase I trial are being recruited and results continue to be expected in the autumn of 2018.

Manuel Llobet, Allergy's chief executive, said:  "Revenue growth of 15% at constant currency reflects the continued strong performance of the product portfolio and its growing market share.

“Our double digit CAGR of revenue over the past 18 years demonstrates that we have a robust, reliable and successful business model."

 

Broker reckons the stock could almost double in value

The shares rose 11% to 29p, valuing the business at £182mln.

As a result, finncap's revenue forecasts were upgraded by 6% and 7% respectively to £72.2mln and £79.5mln for the full year 2017 and 2018.

The new target price is a 7% increase but finnCap adds PQ Grass in the US can add an additional 30p per share if it is a success.

 

About the company 

Allergy Therapeutics has an 80-year history and is no “jam tomorrow” drug development company.

It 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 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 (hay fever) from grass, tree or ragweed pollen allergy is already established in Europe, and the company wants to replicate that 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

couple in bed
March 14 2018
MED2002 is a rapid onset gel designed for those men where the current pill-based treatments aren’t appropriate, or carry significant side-effects
newspaper with word cancer magnified
January 15 2018
"In our view, the potential for SCIB1 [Scancell's skin cancer treatment], as already demonstrated by the survival data, is remarkable," said one broker recently
1506367758_shutterstock_118491940.jpg
September 26 2017
The firm received an order for its clinical research use only (RUO) kits from a large, multinational pharma company

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 Investor UK 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