Allergy Therapeutics PLC (AIM:AGY, OTC:AGYTF) accompanied full year results with fund-raising plans as it gears up for the start of two key clinical trials in its innovative immunotherapy pipeline.
The specialty pharmaceutical company announced a subscription by Southern Fox and ZQ Capital to raise £7mln at an issue price of 20p per share and the issue of loan notes to raise a further £10mln.
The fund raising is supported by a number of the company's largest shareholders, it said, and proceeds will be used to complete the group's Phase I peanut trial and Grass Phase III trial.
The company said it believes VLP Peanut, has the potential to become a best-in-class treatment for peanut allergy with a revenue potential of more than US$1bn per year whilst a successful Grass Phase III trial presents a significant future opportunity to grow grass allergy product sales by transitioning from named patient sales to registered product sales and launch in the US.
Both trials are due to commence in 2022.
The company also reported financials for the year to 30 June, 2022 with revenues of £72.8mln down from £84.3mln reflecting the group’s strategic decision to streamline older products and focus on high value growth products.
Operating profit pre-R&D of £3.4mln was down from £16.9mln last time reflecting the portfolio streamlining, COVID-19 headwinds and continued investment in the supply chain but cash balances remain strong at £20.5mln providing ongoing support for the group's two key clinical trials.
Manuel Llobet, CEO stated: "While market conditions remain challenging for many companies, our leading core European commercial business has been resilient.”
“With a solid cash position and strong, established commercial capabilities that set us apart from solely R&D focused health companies, we are uniquely positioned to create value for our shareholders.”