viewAllergy Therapeutics PLC

Allergy Therapeutics to top expectations despite coronavirus challenges


  • Profitable allergy specialist developing new inoculations
  • Strong revenue growth in Europe
  • Long pipeline of new products under development
Allergy Therapeutics PLC -

Quick facts: Allergy Therapeutics PLC

Price: 15.875 GBX

Market: AIM
Market Cap: £101.17 m

With our strong cash position, successful core products and exciting R&D pipeline, we look forward to the future with confidence

CEO Manuel Llobet


What the company does

As the name suggests, Allergy Therapeutics PLC (LON:AGY), which is headquartered in Worthing, West Sussex and employs around 500 people, develops inoculations against common allergies.

It has five products registered, as well as another five that are available on a named patient basis – this means they can only be prescribed by a doctor.

It has a strong presence in Europe, with established operations in Germany, Italy, Spain, Austria, Switzerland, the Netherlands and the United Kingdom, while in other markets, it often makes its products available through distribution partners.

Its Pollinex Quattro vaccine for the treatment of seasonal allergic rhinitis (hay fever) from grass, tree or ragweed pollen allergy is well-established in Europe.

The company has been pouring money into making injections rather than tablets. This has two major benefits, both of which are linked.

Firstly, injections tend to yield improved clinical results versus tablets.

And they are preferred by physicians in places such as the US and Germany – some of the largest markets in the world.


How’s the company doing?

Allergy Therapeutics is likely to exceed expectations after a strong year.

Net revenues for the 12 months ended June 30, 2020, were £78.2mln, up 6%, it said, while the firm was in a strong financial position with £37mln in the bank at the period end.

The performance was particularly impressive given the challenges in the closing quarter of the year posed by the coronavirus lockdown.

The strong financial position meant it was able to fully fund the upcoming Grass MATA MPL pilot and pivotal phase III field studies and the phase I peanut trial with just ”a small amount of additional debt”.

In July it was granted the opportunity to carry out a new phase III clinical study on its short-course birch pollen inoculation after a tranche of data was declared invalid.

In March, it was revealed Birch MATA MPL had failed to provide therapeutic value.

However, at the time there Allergy Therapeutics hinted at contradictory results from the study. Specifically, the researchers found that there was a “highly statistically significant” differences in immunoglobulin markers between the group receiving the treatment and those not that was suggestive of a “sustained immune response”.


What the boss says: Manuel Llobet, chief executive

"When the outbreak started in Europe, we made a commitment as a group to leverage our strengths. Our business has put in place new efficiencies, highlighting our resilience and agility in times of change and we are thriving as a result." 

"Our plans to develop a strong R&D pipeline remains on track and our two recently signed agreements with partners provides exciting new opportunities for our VLP technology and our oral treatment offerings for allergy patients."


What the broker says

Analysts at finnCap expect profits to around £5m higher than the previous forecasts at £2.9m following a bullish trading update.

“Given the balance sheet (c.£29m net cash at 30 June 2020), underlying growth and previous clinical trial successes, we believe the risk/reward profile is highly attractive and reiterate our target price of 40p.”


Inflexion points

  • Phase III clinical trial of its Grass MATA MPL product 
  • Full-year results to top expectations 


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