Allergy Therapeutics (LON:AGY) will take its Polyvac vaccine for peanut allergy into a phase I clinical trial after it delivered positive pre-clinical results.
The findings showed a single dose of the company's unique adjuvant when combined with recombinant peanut allergen successfully protected against the serious allergic reaction anaphylaxis.
The company is developing Polyvac as a short course of injections that is safer and more effective than the current treatments.
“Hundreds of patients die each year in the United States as a result of food allergies (mainly peanut) and we are committed to saving these lives,” said Allergy Therapeutics chief executive Manuel Llobet.
“This peanut vaccine programme complements our current range of marketed ultra-short course vaccines in terms of safety, efficacy and improved patient convenience."
The shares rose 6% in afternoon trade to 27.5p. However the company’s broker, finnCap, thinks they have further to go.
Analyst Mark Brewer points out Allergy trades on an enterprise value/sales multiple of just two-times when its peers are on 3.2-times.
He reckons the shares are worth 43p each with “substantial further upside” as its hay fever drug Pollinex Quattro progresses through the development phases.
“We currently attribute no value to Polyvac Peanut and will re-assess as it moves into human studies,” said Brewer.
---addds broker comment, share price---