- Continued good sales growth and strong operating profit - Pipeline progressing well with PQ Birch results due Q1 and house dust mite results due in H1
6 March 2019 Allergy Therapeutics plc (AIM:AGY), the fully integrated specialty pharmaceutical group specialising in allergy vaccines, announces its unaudited interim results for the six months ended 31 December 2018.
Highlights
Financial highlights
- Revenue increased by 10.6% (both reported and constant rate*) to £46.7m (H1 2018: £42.2m)
- 27% growth in pre-R&D operating profit to £15.7m (H1 2018: £12.3m) largely as a result of investment in the commercial business last year and a higher gross margin
- R&D expenditure lower at £5.0m (H1 2018: £5.9m) due to lower level of activity
- Cash balance of £31.6m (30 June 2018: £15.5m)
- Oversubscribed equity raise of £10.6m gross in July 2018 to support the development of the Group’s clinical pipeline
Operational highlights
- Increased market share in Germany to 14.5%** (2018: 13.7%)
- Breadth of portfolio demonstrated by strong performance from ultra-short course products as well as venom and modified allergen house dust mite therapies
- Completion of PQ Birch Phase III trial, with data readout expected before the end of Q1 2019
- Scale up of Polyvac Peanut progressing well with intention to begin first in human trial in 2019
- Modified allergen house dust mite Phase I trial completed last patient last treatment with readout expected in H1 2019
Commenting on the interim results, Manuel Llobet, Chief Executive Officer, said: “The Group has made a strong start to the financial year. Our ultra-short course products continue to drive good sales growth in a relatively flat market and the Group’s pre-R&D operating profit has increased as a result of investment into our commercial business last year and our focused sales and marketing strategy. 2019 will be a very important year for the Group and, in particular, our ultra-short course technology platform, with the start of the pivotal Phase III Grass MATA MPL trial for the US and Europe. With an increasing market share, a healthy balance sheet, and an exciting clinical pipeline nearing key value inflection points, we look to the future with confidence.”
* Constant currency uses prior year weighted average exchange rates to translate current year foreign currency denominated revenue to give a year on year comparison excluding the effects of foreign exchange movements. See table in financial review for an analysis of revenue.
** Market data and internal estimates for the 12 months ended 31 December 2018 of Allergy Therapeutics’ direct sales in Germany.
This announcement contains insider information for the purposes of Article 7 of Regulatory (EU) No596/2014.
- ENDS –
Analyst briefing and webcast today
Manuel Llobet, Chief Executive Officer, and Nick Wykeman, Chief Financial Officer, will host a meeting and webcast for analysts to provide an update on the Group, followed by a Q&A session, at 09.30am GMT today at the offices of Panmure Gordon & Co, One New Change, London, EC4M 9AF. Dial-in details are:
Webcast link: https://edge.media-server.com/m6/p/9wmz6jyi
UK dial-in: +44 (0) 2071 928000
US dial-in: +16315107495
Conference ID: 6619359
For further information, please contact:
Allergy Therapeutics
+44 (0) 1903 845 820
Manuel Llobet, Chief Executive Officer
Nick Wykeman, Chief Financial Officer
Panmure Gordon
+44 (0) 20 7886 2500
Freddy Crossley, Emma Earl, Corporate Finance
Erik Anderson, Corporate Broking
Consilium Strategic Communications
+44 20 3709 5700
Mary-Jane Elliott / David Daley / Nicholas Brown / Olivia Manser
allergytherapeutics@consilium-comms.com
Stern Investor Relations, Inc.
+1 212 362 1200
Christina Tartaglia
Notes for editors:
About Allergy Therapeutics
Allergy Therapeutics is an international commercial biotechnology company focussed on the treatment and diagnosis of allergic disorders, including aluminium free immunotherapy vaccines that have the potential to cure disease. The Group sells proprietary and third-party products from its subsidiaries in nine major European countries and via distribution agreements in an additional ten countries. Its broad pipeline of products in clinical development include vaccines for grass, tree and house dust mite, and peanut allergy vaccine in pre-clinical development. Adjuvant systems to boost performance of vaccines outside allergy are also in development.
Formed in 1999 out of Smith Kline Beecham, Allergy Therapeutics is headquartered in Worthing, UK with more than 11,000m2 of state-of-the-art MHRA-approved manufacturing facilities and laboratories. The Group, which has achieved double digit compound annual revenue growth since formation, employs c. 500 employees and is listed on the London Stock Exchange (AIM:AGY). For more information, please see www.allergytherapeutics.com.
