Allergy Therapeutics PLC (AIM:AGY, OTC:AGYTF) has given investors something to cheer about. The AIM-listed biotech climbed 3.3% to 8.25p after reporting encouraging progress in its early-stage trial for a peanut allergy vaccine.
The company said its phase I/IIa study, called PROTECT, has now safely completed dosing in healthy volunteers at the highest planned levels, with no signs of serious side effects or tolerability issues.
Only one group of peanut-allergic patients remains to be dosed, a stage expected to push beyond the intended effective range, adding further confidence in the treatment’s safety profile.
The vaccine, known as VLP Peanut, uses virus-like particles to help the immune system build tolerance to peanut proteins.
Early data released last December showed a 48% reduction in skin reaction size among treated patients, compared with just 8% for those given a placebo, a sign that the therapy may meaningfully reduce allergic sensitivity.
Results from the final stage of the current trial will guide dose selection for a larger Phase IIb study, due to begin in 2026.
Cavendish says the update strengthens the case for VLP Peanut’s potential in what it calls a “multi-billion-dollar” global peanut allergy market, pointing to Nestlé’s $2.1 billion purchase of Aimmune Therapeutics in 2020 as evidence of growing industry interest.
With a target price of 13p, the broker remains supportive of the stock, arguing that Allergy Therapeutics’ latest progress adds a welcome dose of optimism to its recovery story.