The pollen vaccine specialist gained share in a “flat” European market as it said sales had grown strongly in the first half of its latest financial year.
The company, which has developed short course inoculations against hay fever, said turnover was £40.4mln in the six months to December.
That represents an increase of 18% at constant currencies or 39% when the translational currency effect of the weak pound is brought into play.
“We are excited by the prospects of the company as we continue expanding our operations in Europe, progressing our development pipeline and moving forward with a world-class portfolio of allergy vaccines,” said chief executive Manuel Llobet.
“We are confident about the full year and look forward to updating shareholders on further progress throughout 2017."
The drug development programme in the US and Europe is proceeding to plan, Allergy said.
Broker reckons the stock could almost double in value
The shares rose 2% to 24p, valuing the business at £142mln.
As a result, Finncap's revenue forecasts for the year have been upgraded to £62mln (+4%), while the loss forecast is trimmed £0.5mln to £3.2mln.
The broker’s target price on the shares rises to 43p.
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.