Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) interim CEO Anders Lundstrom and CFO Santosh Shanbhag talked with Proactive about the company's impressive growth in the iron deficiency market.
They discussed the key highlights from the first half of the year, including a 3.5x increase in Accrufer revenues, bringing in $11 million in total net revenue.
Shanbhag emphasized this growth was driven by both increased prescriptions and improved pricing strategies.
Lundstrom provided insights into Shield Therapeutics' broader market strategy, focusing on their collaboration with Viatris and global partners to expand Accrufer's reach.
He highlighted recent milestones such as Health Canada's approval of Accrufer, marking a significant step in the company's global expansion.
Here’s the interview:
Proactive: I'm joined by Anders Lundstrom, the CEO, and Santosh Shanbhag, the Chief Financial Officer at Shield Therapeutics.
Before we start, could you perhaps give us a brief introduction of yourselves? I'll start with you, Anders.
Anders Lundstrom: Sure. Thank you. So, yeah, my name is Anders Lundstrom. I'm the interim CEO since last month.
Actually, I've been on the board for about three and a half years. Here in the US, I follow the whole developmental setup of the US commercial operations. By way of background, I’ve been in the industry for over 35 years, half in Europe, half in the US, mostly working on the commercial side in listed companies.
Proactive: And a brief background of yours, Santosh?
Santosh Shanbhag: Hi, Stephen. This is Santosh, and hi everyone. I'm the CFO of Shield. I've been with the company since the start of the year.
I’m excited about the growth we're looking at right now and the future prospects. My background is in biotech and pharma, and I've previously taken a company public on Nasdaq. Prior to that, I spent about a decade at Vertex Pharmaceuticals in the US, both as the financial leader and as the CFO of international business based out of Europe.
Proactive: Anders, can you provide a reminder of what Shield Therapeutics does?
Anders Lundstrom: Absolutely. We work in the space of iron deficiency, with or without anemia. We offer an elegant oral solution for patients who have issues tolerating other oral irons.
We operate in a very large market, especially in the US, where we have our own commercial operations, and work with partners in other regions.
We have a collaboration with Viatris, a large US pharmaceutical company. We've been on the market for about a year with a team of about 106 people. We've seen significant growth over the last four to five quarters, and the opportunity ahead is substantial, potentially several hundred million dollars in the US.
Proactive: Santosh, you announced your half-year results this morning. Could you take us through the highlights, please?
Santosh Shanbhag: Absolutely. As mentioned in this morning's press release, Shield is focused on three key areas.
The first is growing Accrufer revenues, prescriptions, and pricing here in the United States, along with our partner Viatris. Secondly, we are ensuring that we have the financial backing to support our near-term growth and future opportunities, particularly in the US.
Thirdly, we are working to make ferric maltol, the active ingredient in Accrufer, accessible to patients globally.
On Accrufer, I’m excited to report that we had $11 million in total net revenues in the first half of this year. That represents a three and a half times growth compared to the first half of 2023, where we reported $3.7 million. This growth was driven by a 25% quarterly increase in prescriptions since our launch, and a 33% increase in net price per prescription. Total revenues, including Accrufer, were $12.1 million, with $1.1 million coming from global partners.
We also reported an operating loss of $15.5 million, driven by a gross profit of $5.5 million and selling, general, and administrative expenses of $18.8 million. We exited the first half of this year with $8.1 million in cash, compared to $13.9 million last year. Additionally, we established a $10 million accounts receivable financing and amended our $20 million debt financing earlier this year.
Proactive: Just as Santosh mentioned, you recently announced that you've received Health Canada approval for Accrufer. What does this mean for the business?
Anders Lundstrom: It’s always significant to get another market approval. After being approved in Canada, which is a relatively large market, we received a milestone payment, and we will continue to collect royalties there.
Proactive: Could you tell us a little bit about the other markets that you operate in and any potential market opportunities?
Anders Lundstrom: Certainly. In Europe, our collaboration partner is Norgine, which commercializes Accrufer across the continent under the brand name Feraccru. In Canada, Sky Pharmaceuticals is our partner, and in Korea, KP Korea Pharma is our partner with a new drug application under review.
We expect approval in Korea in 2025. In China, our partner is currently conducting a phase three study, which we hope to complete by the end of this year, with potential approval in the second half of 2026.
We are also exploring opportunities to expand into other geographies using our FDA or European approvals.
Proactive: Santosh, finally, what should investors be looking out for in the next six months?
Santosh Shanbhag: As a business, we are hyper-focused on three key areas: the growth of Accrufer in the United States, maintaining financial efficiency, and working closely with our global partners to progress our programs. We are also looking forward to the results of our ongoing pediatric study later this year.