Sign up United Kingdom
Proactive Investors - Run By Investors For Investors
Why invest in AGY?
Allergy Therapeutics plc: THE INVESTMENT CASE
INVESTMENT OVERVIEW

Allergy Therapeutics readies grass pollen treatment for Phase III trial after “extremely positive” mid-stage results

The Phase II study of Allergy Therapeutics’ PQ Grass immunotherapy – an aluminium-free, ultra-short course hay fever treatment – evaluated dose response and safety
little girl sneezing in a field
INVESTMENT OVERVIEW: AGY The Big Picture
CEO Manuel Llobet expects to kick off a Phase III study in 2019

Allergy Therapeutics PLC (LON:AGY) has hailed the “extremely positive results” from the Phase II trial of its grass pollen-induced hay fever immunotherapy.

The AIM-quoted firm said PQ Grass met its primary endpoint, with those taking the drug showing “a highly statistically significant” reduction in symptoms compared to patients in the placebo arm of the study.

READ: Allergy Thera highlights benefits of adjuvant technology

WATCH: CEO upbeat after latest trial results

Allergy already has a treatment for grass pollen-induced allergic rhinitis – a fancy term for hay fever. But this new formulation is an injection which includes an adjuvant to help boost the body’s immune response.

“We are thrilled with these extremely positive results demonstrating dose-dependent efficacy of the product including the current marketed dose,” said chief executive Manuel Llobet.

“With an optimal dose identified, we look forward to sharing this new, exciting data with the health authorities and plan to commence a phase III study in 2019.”

One of the key target markets for the PQ Grass is the US, where it would be the first immunotherapy injection to be registered and where peak grass vaccine sales could be US$300-$400mln a year.

Doctors want injectable treatments

“Allergy is the only company to have been putting material investment into more convenient injections, that are preferred by physicians in the largest markets in the world (Germany, US, Japan),” wrote Numis analyst Paul Cuddon in a research note.

“We expect this to pay dividends longer term given the improved patient adherence and clinical results with SCIT (injection) over SLIT (under-the-tongue), and the likelihood that a large number of competitor products will be taken off the market given the heightened standards.” 

Cuddon has the stock as ‘buy’ with a 45p target price. Allergy shares rose 8.1% to 26.5p in early deals on Monday.

The company has three growth ‘pillars’, which includes growing strongly in its European heartland where it has a robust, profitable business.

Three pillars

It wants to do this by expanding its market share and making additional product registrations.

It has a strong pipeline of products coming through and investment in this regard will help underpin the bedrock of the business. This is growth pillar two.

The third is the US, which as the largest allergy market in the world, provides a significant opportunity. The environment there is changing, potentially driving new customers towards the firm’s products.

As mentioned above, the potential market size of the US could be transformational for Allergy Therapeutics as the graphic below reveals.

Allergy Therapeutics has an 80-year history and so is no “jam tomorrow” drug development company and was spun out of SmithKline Beecham in 1999.

No flash in the pan

Headquartered in Worthing, West Sussex, it employs around 500 people.

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.

-- adds background information --

View full AGY profile View Profile

Allergy Therapeutics plc Timeline

Related Articles

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
Collagen testing
Fri
Since reporting its full-year results on July 10, the AIM-listed shares have rallied over 38% in the past month to 3.65p currently, taking year-to-date gains to a third
leg bones
March 31 2018
"We are now in the position of really trying to kick on in 2018"

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