Allergy Therapeutics PLC (AIM:AGY, OTC:AGYTF) said it expects net profits for the year just ended to meet forecasts even on reduced revenues.
The hay fever and vaccine specialist said revenues for the year to June 2022 will be £72.8mln or 14% below last year’s £84.3mln, due largely to a slimming down of the product portfolio with the removal of older products.
Operating profits will also drop due to a supply chain issue costing £1.4mln, but this will be offset by lower R&D costs and means net profit is in line with consensus, the statement added.
In 2023, sales are expected to return to their previous near double-digit growth levels although costs are likely to increase further due to inflation and the end of Covid-19 restrictions relating to travel, allowing a return to scientific conference attendance.
The cash balance at the end of June 2022 was £20.5mln (30 June 2021: £40.3mln) which with some additional debt, will be sufficient to fund the upcoming phase III trial for Grass MATA MPL and the phase I PROTECT trial for VLP Peanut, which are both on track to commence later in 2022, Allergy added.
Manuel Llobet, chief executive, said: "The group has performed robustly despite tough conditions this year.
“We are now ready to start two key clinical trials of innovative products that will provide significant future market opportunities.
“We believe that both Grass MATA MPL and VLP Peanut are market leading products with the ability to give patients outstanding treatment."