Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) is gaining momentum. The company, known for its oral iron supplement ACCRUFeR, has reported a strong end to 2024, with US sales driving record revenues for the year of $32.2 million, according to a research note from Cavendish.
That’s a 153% increase from the previous year, putting Shield on track to break even by late 2025.
The company has been laser-focused on the US market, where prescription volumes almost doubled to 150,000 last year.
Shield has shifted strategy, prioritising higher-value prescriptions and reducing loss-making consignment sales. That’s pushed its average selling price up 42% in the last quarter alone, a crucial step toward financial sustainability, Cavendish notes.
Expansion is also on the cards. Shield has regulatory applications in the pipeline for China, Korea, and a paediatric version of ACCRUFeR. It also expects launches in Canada this year, with double-digit royalties from global partners providing a future revenue boost.
Despite the sales surge, Shield is still in the red. The company ended 2024 with $6.5 million in cash but secured a $10 million injection from AOP Health in January. This funding is expected to carry Shield to profitability, Cavendish says.
The key partnership with Viatris, which co-commercialises ACCRUFeR in the US, has been instrumental. By targeting high-prescribing doctors and focusing on five key states, Shield has built a stronger foundation for growth.
Investors remain cautious. The share price sits at just 3.2p, well below Cavendish’s new 23p target price, lowered from 30p due to increased shares in issue. However, with US sales accelerating and a clearer path to cash flow positivity, Shield is gaining credibility as a long-term growth story.
For now, the company still has work to do. It must maintain its sales momentum, keep costs in check, and successfully execute its expansion plans. If it does, Cavendish suggests investors could see significant upside.