Hay fever vaccine specialist Allergy Therapeutics (LON:AGY) could get a short-term boost following a competitors manufacturing suspension, according to house broker Panmure Gordon.
French group Stallergenes had to temporarily close its Antony manufacturing plant earlier this month due to IT problems.
The company could be forced to recall all products released from the site since August, benefitting its competitors, Panmure said.
Though Allergy focuses mainly on injection treatments, the company has Oralvac, a product that falls into the oral market.
Oralvac accounted for around 15% of Allergy’s revenues last year, and, as a result, the firm could benefit from the temporary closure.
Panmure said: “We consider this additional dynamic might provide some (temporary) tailwind effect in certain product categories.”
It also noted that Allergy has been making market share gains in Europe despite flat trading conditions, and that this episode highlighted Allergy’s own “exemplary” compliance record.
The broker repeated its ‘buy’ recommendation on the stock, with a target price of around 51p. Shares were broadly flat at 31p on Thursday.