This is the worst time of year for hay fever sufferers, which makes it one of the busiest periods for Allergy Therapeutics PLC (LON:AGY)
As the temperature rises so does the pollen count and, with it, the discomfort for those affected
For most, a trip to the chemist to get something over the counter will suffice, but for those with a more serious condition is where Allergy steps in.
The AIM-listed business has developed injectable immunotherapy treatments for a range of allergic irritations including grass, tree, ragweed and others.
Hay fever is related to the grass pollen season -which starts early summer. Tree pollen comes in spring, while weed pollen is an autumn event. Allergy has immunotherapy-based treatments for all of them.
Allergy's point of difference is that its treatments are short. Its Pollinex Quatro platform, for example, comprises four to six jabs, against up to 15 for rival injections or oral treatments that have to be taken for up to three years.
And that convenience is helping it grow both market share and revenues.
Key markets currently are in the European Union such as Germany and the Netherlands where growth has been strong ever since management bought it out from what is now GlaxoSmithKline in 1999.
Manuel Llobet, chief executive, says annual compound growth has averaged at least 9% over the past twenty years, a rate he believes is unmatched in the allergy space.
Interim results suggested the company is on course to achieving that level of growth again this year even with the disruption caused by Covid-19.
That meant hospitals in southern Europe where injections are administered switched to focusing solely on Covid-19, nonetheless, revenues in the half-year to December rose by 7% to £54mln while underlying operating profits rose 18.5% to a record £20.5mln.
Pre-tax profits were £15.6mln while cash in the bank was a net £44.5mln at the end of 2020.
Just on those numbers, the current market valuation looks undemanding at £158mln and a 24.6p share price.
But that is half the story. Allergy has a rapidly developing clinical division with two products set for trials this year that can put a whole new complexion on the business.
A grass pollen vaccine for the US based around the technology its uses in Europe is the most advanced.
Admittedly, Allergy has had problems in the past with trials in the US, but has used that experience to structure this new study into two phases.
Dosing is underway for patients in a phase III trial with results to be released later this year that will be followed by a field study of around 900 patients starting in 2022 and reporting in 2023.
Allergy estimates the US grass pollen market alone at US$2bn, but there is potential if its treatment platform is approved to expand to trees, ragweed and other allergies.
Management believes that the US market for allergy treatments is way behind Europe with many immunotherapy treatments still made on a bespoke basis that can involve up to 100 injections.
At an earlier stage but offering possibly even more potential is a peanut allergy treatment where it says the immunotherapy approach offers an opportunity of a cure and not just a treatment for the symptoms.
Pre-clinical trials in mice were so encouraging that the results were noted in the highly prestigious Journal of Allergy and Clinical Immunology.
Using a cucumber-derived mechanism, the body is trained not only to recognise the peanut but also to remember that is harmless rather than going into anaphylactic shock and throwing everything it can at the allergen.
A phase 1 safety trial starts this year so a product will be some years away, especially as the clinical steps will be slow and careful due to the dangers, but Llobet believes if the early promise in mice can be replicated in people, it will be a gamechanger for the company.
Peanut allergy alone is a market worth upwards of US$5bn the company estimates, but it is already looking at expanding the platform into other types of allergy such as cat, dust mite, horse.
“Prety much anything”, says Llobet, who adds the company has also started to explore its use in other therapy areas including cancer, psoriasis and asthma.
In the meantime, new options are being added to the existing portfolio. A new product that treats general allergies was recently approved in Germany and launched there and in Austria early this year.
Allergy has some large shareholders with big stakes, most notably US giant Abbott Labs at 38%, and many of the shares are tightly held, but with a seemingly rock-solid trading arm and an exciting and growing clinical pipeline, this is definitely one to watch.