Allergy Therapeutics (LON:AGY) has a good business in Europe, but it is the US opportunity that can transform the hay fever vaccine group according to broker Stifel. The broker notes the company has already invested over US$100mln developing its flagship Pollinex Quattro (PQ) product portfolio for the US market. After initial delays, a first US product launch is now slated for 2019 and just for the grass vaccine allergy alone Stifel is predicting sales of US$400mln by 2023. With around 1m allergy sufferers in the US receiving allergy immunotherapy (AIT) for their grass allergies each year and an annual treatment cost of around $2,000 per person, the grass AIT market is potentially worth $2bn in the US. Stifel sees Pollinex Quattro Grass achieving a 20% market share. Ragweed and Trees vaccines are expected to follow and from its full Pollinex Quattro portfolio Allergy believes it can generate revenues of between US$800-1,000. Stifel has started its coverage with a target price of 79p, compared to a current share price of 27p, or about 200% upside. Buy is the broker’s investment view. “With multiple catalysts expected over the next 12-24 months, we expect the shares to outperform.”
Allergy Therapeutics has major opportunity in US, says Stifel
Just for the grass vaccine allergy alone Stifel is predicting sales of US$400mln by 2023.