Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) said prescriptions for its Accrufer iron deficiency treatment doubled quarter-on-quarter in the first three months of 2022.
The specialty pharmaceutical company added that after a “transformational 2021” it had got off to a solid start in 2022, with strong growth in revenue and demand.
Total prescriptions for Accrufer in the first quarter topped 3,900, with women’s health practitioners accounting for more than half of those.
The company added that more than 1,100 healthcare providers have been introduced to Accrufer through participation in programmes sponsored by Shield in the first four months of 2022. The same period saw 700 first-time prescription writers of Accrufer, which Shield said indicated growing awareness and interest in the treatment by healthcare providers.
In 2021, Shield saw revenues of £1.5mln versus revenues in 2020 of £10.4mln. The loss for the year was £17.9mln versus a loss the previous year of £2.6mln.
The company ended the year with net cash of £12.1mln, up from £2.9mln a year earlier.
As well as given a business update, the company revealed it is on the cusp of sealing a new financing deal that will extend the group’s cash runway through to the end of the year more or less by means of a US$10mln shareholder loan from AOP Orphan, which has a 13.1% stake in Shield.
Interest of 7.0% above the 12-month USD-LIBOR is payable monthly in arrears on the loan. The shareholder loan will be secured against the US intellectual property rights associated with Accrufer and will be repayable in cash in the event that Shield secures a further debt or equity financing for no less than roughly US$30mln or, in any event, by 31 December 2023.
An arrangement fee of 2% is payable to the lenders on signing the formal loan documentation.
The company revealed that prior to agreeing in principle to the shareholder loan it had explored the possibility of raising US$30mln in equity by means of a non-dilutive debt facility from a financial institution but the idea was abandoned because of challenging market conditions.
The company has continued to engage with various parties in relation to potential financing opportunities and other strategic partnerships, which in combination with the loan expected from AOP has led Shield to re-assess the optimal level and structure of its future funding required to drive sales growth of Accrufer in the US. That assessment is ongoing and further announcements will be made in due course.
"Twelve months ago, awareness of Accrufer and its clinical application was low along with the company's profile so it's rewarding to stand here today with a rapidly growing business highlighted by increasing prescriptions, expanding payer coverage, growing awareness and first-time writers. That, coupled with a dynamic new commercial leadership team who bring not only expertise but passion and belief that we can alter the dynamics of how patients are treated for iron deficiency, with or without anaemia," said Greg Madison, the chief executive officer of Shield Therapeutics.
"Based on all our collective insights, we are even more confident today about Accrufer becoming the oral iron of choice and the potential for significant value creation. The team here at Shield will continue to work tirelessly in our pursuit to ensure the millions of patients seeking treatment for their iron deficiency, will have the opportunity to experience the benefits of Accrufer," he concluded.