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

Allergy Therapeutics expects first-half revenue rise; continues to take market share from rivals

The company has a portfolio of vaccines which treat the symptoms of various allergies, including dust mites, grass, pollen and venom
boy with cat allergy
Allergy now has a 14% share of the German allergy market, and the aim is to have a 20% share in every market it operates in

Allergy Therapeutics plc (LON:AGY) has told investors it expects to report a rise in revenues in line with expectations for the first half of its financial year as it continues to win market share in its key territories.

The speciality pharma group has made gains in highly competitive markets such as Spain, Germany, Austria and Holland over the past six months or so, despite an “abnormally weak” pollen season in Central Europe.

H1 revenues to rise 4.4% year-on-year

Allergy – which has a portfolio of patient-friendly allergy vaccines – said it had managed to take share away from its rivals in those countries and others thanks to a “focused sales and marketing strategy and its exclusive technology platform”.

As a result, the AIM-quoted firm said revenues for the six months ended December 31 are expected to grow 4.4% compared to the same period a year ago.

The company has been leveraging these additional revenues on current infrastructure to improve its operational margins pre-R&D.

This, along with careful planning of working capital and capex investments, has allowed the group to maintain a healthy cash position of £25.8mln (31 Dec 2016: £27.8mln).

Second half started well

Pollinex Quattro – the firm’s vaccine designed to treat the symptoms of seasonal allergens such as grass, trees etc – remains a key growth driver, while its Venomil venom allergy vaccine and dust mite allergy treatment, Acarovac Plus, are also performing strongly.

Post-period end, Allergy said trading “remains positive” and it is confident in the outlook for the business for the remainder of the year.

“Our strategy to prioritise patient-friendly vaccines with focus on patient compliance and improving adherence rates is demonstrating success,” said chief executive Manuel Llobet.

“Our portfolio of ultra-short course vaccines is driving our market penetration in Europe and preparing the ground for a successful US entry.

“All our key development programmes are being executed according to plan and our long-term strategic objectives, are on track.”

Pipeline remains strong

AGY isn’t standing still though and is looking to add new products to its portfolio.

Currently in the pipeline is a treatment for people allergic to birch pollen, which is about to undergo a European phase III clinical trial during the birch pollen season (normally March to June) after the recruitment phase was completed earlier this month.

If the trial proves that PQ Birch – as the vaccine is known – safely reduces the symptoms of sufferers, the study would pave the way for marketing authorisation.

Results from a phase II trial of its PQ Grass treatment are expected in the second half of this year, with the recruitment stage now well underway. Once the results are in, Allergy bosses will meet with European and US regulators to discuss the design of a phase III study.

View full AGY profile View Profile

Allergy Therapeutics plc Timeline

Related Articles

scientist with vial
Thu
The AIM-listed drug developer is at the vanguard of advances in the emerging field of immuno-oncology
pipette and petri dish
June 19 2018
As well as developing its lead compound, Silence has also been busy taking its larger rivals to court over alleged patent infringements
3d rendering of an antibody
July 24 2018
It is teaming up with Bach BioSciences, a company commercialising the research of William Bachovchin, a professor at Tufts University School of Medicine, Boston

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