Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) reported strong sales for the third quarter of 2024. It unveiled plans to raise around $10 million of new investment and reiterated its aim of becoming cash flow positive next year.
Shield’s flagship iron deficiency drug, Accrufer, generated $7.2 million in net revenue, driven by a 20% increase in prescriptions compared to the previous quarter and an 86% rise from the same period in 2023.
Including royalties and milestone payments, Shield reported total quarterly revenue of $8 million, resulting in $20 million in revenue for the first nine months of the year. The company expects to meet its full-year revenue target of $31.5 million.
Shield has taken steps to strengthen its financial foundation in line with its strategic goal to achieve positive cash flow by the end of 2025.
The company expanded its working capital financing with Sallyport Commercial Finance, raising its facility from $10 million to $15 million.
Additionally, Shield implemented a 10% reduction in operating costs, aiming to extend its cash reserves into the second quarter of 2025.
In the update, the speciality drug group also announced a potential $10 million equity investment from its largest shareholder, AOP Health, under a non-binding term sheet.
If finalised, the subscription would increase AOP Health’s stake in Shield to a controlling interest, pending shareholder approval and regulatory clearance.
"It has been another successful quarter for Shield as we work towards becoming cash flow positive by the end of FY 2025," said CEO Anders Lundstrom.
"We continue to see increased demand for ACCRUFeR in the US and across all our territories.
"Net sales, total prescriptions and the net selling price of ACCRUFeR are all showing positive trends, and with a strengthened balance sheet and tight control of our cost base we will continue to build momentum behind ACCRUFeR and make the steps required to transition to cash flow positive by the end of 2025."