Analysts at Peel Hunt think that the commercial prospects for Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF)'s Accrufer anaemia treatment "remain very good", noting that prescriptions are building as shown in a business update with the company's first-half results.
The Peel Hunt analysts noted that Shield's first half 2022 revenues were £2.0mln with prescriptions for Accrufer up 350% from a year earlier as 100mln lives in the US are now covered by payer relationships, while 20mln patients in the US alone have anaemia.
The analysts pointed out that Shield's cash at the end of August 2022 was £8.2mln and its monthly burn rate of around £1.5mln shows the company has plenty of time to pursue partnerships/financing opportunities in order to continue commercial activities.
They said: "We think that market traction is now very much a function of continued focus (and investment) on marketing and commercialisation (and we note that invested costs are likely to have a lag time as sales reps and MSL networks kick into gear). A real positive is also the dramatic increase in coverage with now up to 40% of US patients having access to Accrufer though Shield’s payer relationships (2,300 healthcare providers introduced in 1H22)."
"We concede that our FY22E revenue target of £8.5m might be a bit of a stretch from the mid-point (£2.0m) without further investment in 2H22 to drive greater marketing traction but consensus on £6.8m looks more achievable," the analysts concluded,
The Peel Hunt analysts said they have placed their long-held 150p target price for Shield under review, but retain a 'buy' rating on the stock.
In afternoon trading on Thursday, Shield shares were trading at 10.25p.