A successful rollout of its newly launched grass-pollen treatment is ste put Allergy Therapeutics PLC (AIM:AGY, OTC:AGYTF, FRA:HHU) on the path to self-sustaining profitability.
That's according to Cavendish, the AIM-listed biotech's house broker, which cites management's previous commentary around peak sales potential of €100 million in Germany alone in a global market projected to reach around $1 billion by 2030.
The assessment accompanied half-year results for the six months to December 2025, which showed revenues of £36.3 million, up 7% on the prior year, an encouraging outcome given the ongoing regulatory transition away from unregistered allergy products in Germany, its largest market.
Grassmuno, the company's grass-pollen allergen immunotherapy, a treatment that gradually desensitises patients to allergens rather than simply suppressing symptoms, received German regulatory approval and was commercially launched in January 2026.
The launch came slightly later than expected, missing the peak September-to-December immunisation season, and Cavendish has trimmed its full-year revenue forecast to £63 million from £68 million as a result, still representing 14% year-on-year growth.
The company reinforced its financial position in February, upsizing its debt facility with Hayfin Healthcare to £60 million, leaving gross cash of £42.4 million at the end of that month.
Pipeline progress on VLP Peanut, an experimental vaccine-based treatment for peanut allergy that works by training the immune system, added further optionality, with early phase I/IIa data described as encouraging.
Cavendish retains a 'buy' rating and 13p target price on Allergy Therapeutics, which is a corporate client of the broker. The current price is 10.3p.