Allergy vaccines specialist Allergy Therapeutics PLC (LON:AGY) continued to gain market share in its most recent fiscal year.
The group said the year to the end of June was one of strong progress made against its strategic objectives of expanding in Europe, preparing for entry into the US market, and making clinical progress with the group's lead assets.
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Despite a low pollen season, revenue rose 6.6% to £68.3mln from £64.1mln the year before, albeit helped by currency movements; on a constant currency (CC) basis, revenue growth was 3.5%.
The group’s market share in Europe increased to 14% from 13% the previous year.
An increase in research & development costs to £16.0mln from £9.3mln the previous year led to the loss before tax widening to £6.9mln from £2.0mln the year before.
Cash at the end of June stood at £15.5mln, down from £22.1mln a year earlier, when the group raised £10.6mln through a placing of shares.
READ: Allergy Therapeutics raises £10.6mln to fund expansion of late-stage PQ Grass study
“2018 was a solid year for Allergy Therapeutics as we made important progress in key areas across the company,” said Manuel Llobet, the chief executive officer of Allergy Therapeutics.
“We generated continued growth despite a low pollen season in our core business, with constant currency revenue growth of 3.5%, driving additional gains in market share and a 26% increase in pre-R&D operating profit. We also achieved significant clinical success in the year, with the positive Phase II PQ Grass in May and we now expect headline data from the Phase III PQ Birch study by the end of the year,” he added.
“With progress towards the US market, a pipeline of exciting clinical and pre-clinical assets, and a robust balance sheet, we look to the future with confidence in our growth prospects," Llobet concluded.
In a note to clients, analysts at City broker Hardman & Co said the company was approaching profitability in 2020 according to its models, adding that sales growth was predicted to be in "mid to high single digits" over the next two years, driving market share gains.
Hardman also said they expected R&D expenditure to grow between 11% and 12% on previous years and biased toward the second half of the year due to the timing of clinical trials.