Allergy Therapeutics PLC (AIM:AGY, OTC:AGYTF) expects sales growth to pick up in the second half of the year and has reiterated plans to launch its new grass pollen vaccine, Grass MATA MPL once it secures regulatory approval in Germany.
If greenlit by the Paul-Ehrlich-Institut (PEI), the short-course hay fever treatment could be on the market by this time next year, analysts reckon.
In an update alongside interim results. the company said it is seeing “clear positive momentum” across the business and is focused on maintaining cost discipline while making targeted investments to support future product launches.
In the six months to 31 December 2024, Allergy Therapeutics delivered a modest sales increase, with revenue rising 1% to £34 million.
Adjusting for currency swings, growth was closer to 4%. That marks a second consecutive period of half-year growth. Volumes rose 5%, helped by improved manufacturing output and a recovery in the company’s diagnostics portfolio.
Pre-research and development (R&D) operating profit came in at £1.9 million, swinging from a £0.5 million loss in the same period the year before. The gross margin held steady at 61% while spending on marketing and admin was cut back by nearly 10% thanks to tighter cost controls.
Chief executive Manuel Llobet said: “Our return to first-half growth and strengthened financial foundation give us renewed confidence to advance our strategic priorities.”
He pointed to progress in the company’s two main pipeline programmes, grass pollen and peanut allergy, adding: “We are well positioned to deliver on our commitment to transform patient care in allergy while building sustainable value.”
In November, the company submitted its marketing application for Grass MATA MPL in Germany, following strong phase III results showing a 20.3% reduction in allergy symptoms compared to placebo. A new paediatric study also got underway in the same month, targeting children with grass-induced allergic rhinitis.
Meanwhile, its early-stage vaccine for peanut allergy, VLP Peanut, showed encouraging data from the first part of a phase I/IIa trial. Patients who received the treatment showed up to 48% less skin sensitivity to peanuts compared to 8% in those given a placebo.
The company said the safety profile looked promising and believes the product could offer a new approach for peanut allergy sufferers.
Operating losses narrowed to £8.6 million from £11.9 million, while the cash position improved to £21.7 million at the end of the period, up from £12.9 million six months earlier. Debt also rose, following a new funding agreement with specialist healthcare investor Hayfin in October.
Allergy Therapeutics said it expects further funding will be needed from the fourth quarter of the current financial year onwards. Talks are ongoing to access up to £47.5 million in existing but uncommitted credit facilities.