Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF), the commercial-stage pharmaceutical company, confirmed it is still on course to be cash flow positive in the second half of next year as revealed its commercial momentum had continued in the first quarter after a solid 2023 performance.
This success is based on Accrufer, for patients experiencing iron deficiency, with or without anaemia, which has significant advantages over the current standard of care.
This innovative treatment has shown a marked increase in adoption, with prescriptions rising by 174% year-on-year to 28,8000 and up 1% from the fourth quarter of 2023.
Growth was particularly strong in major US states such as California and New York, although Texas saw a 28% decline due to a transitional period lacking a Pharmacy Benefit Manager for Medicaid, which affected prior authorisation approvals.
Financially, Shield strengthened its cash reserves with a new $10 million accounts receivable financing deal with Sallyport Commercial Finance and improved terms on its existing $20 million debt financing with SWK Funding. As of March 31, cash and cash equivalents balance were $10.4 million.
"We observed several encouraging growth signals during Q1 2024 including rising prescriptions in key states such as California and New York, after receiving access to Medicaid in those populous states," said Shield CEO Greg Maddison.
"Additionally, our stated initiatives to improve the average net selling price by increasing PA submission rates and more favourable Medicaid pricing following renegotiation of payer contracts, are progressing very well.
"While the situation in Texas dampened the impact of these positives, we are engaged with the new PBM with the aim of finding a resolution as quickly as possible."