Allergy Therapeutics' revenues top forecasts
11:25 13 Jul 2016
Updating investors, the company said turnover will be around £48.5mln, representing a rise of 12%, or 19% once the figure is adjusted for currency movements.
Allergy Therapeutics plc (LON:AGY) said revenues for the year ended June were slightly ahead of market expectations.
Updating investors, the company said turnover will be around £48.5mln, representing a rise of 12%, or 19% once the figure is adjusted for currency movements.
Against a “flat backdrop”, the business, which specialises in allergy vaccines, has grown its market share by two percentage points to 12%.
Gains were made in Germany, Austria, Spain and the UK where demand for products such as Pollinex Quattro, Oralvac and newer lines, such as Acarovac and Synbiotics, remains buoyant.
IN DEPTH: Getting under the skin of Allergy Therapeutics
AT A GLANCE: All facts and figures
“The company expects strong revenue growth to continue for several years,” Allergy added.
Turning to the pipeline, it said a phase III study for its PQ Birch product should get underway in the first half of next year, while in the US the company is in the process of deciding the optimum dose for its phase III trial of PQ Grass.
“We continue to invest in our business and remain on course to become the leading company in the subcutaneous segment,” said chief executive Manuel Llobet.
“We are also very excited about the commercial opportunities in our current broad portfolio."
Broker reckons the stock could more than double in value
The shares rose 4% to 19.77p, valuing the business at £122mln. The broker Panmure Gordon reckons the stock is worth 53p.
“With our investment thesis fundamentally unchanged despite the speed bump of the US dose ranging study we view the share price reaction offers investors an excellent opportunity,” said analyst Dr Mike Mitchell.
About the company
Allergy Therapeutics has an 80-year history and is no “jam tomorrow” drug development company.
It has a profitable core business and, as the name suggests, a number of ground-breaking allergy vaccines that trade under various brand names. Its most commonly prescribed vaccines are used to treat pollen-related allergies, particularly allergies to grasses and trees.
It has has a strong presence in Europe with established operations in Germany, Italy, Spain, Austria, Switzerland, the Netherlands and the United Kingdom, while in other markets it often makes its products available through distribution partners.
Its Pollinex Quattro vaccine for the treatment of seasonal allergic rhinitis (hay fever) from grass, tree or ragweed pollen allergy is already established in Europe, and the company wants to replicate that in the US, where it will enjoy first mover advantage in a market potentially worth $2bn.
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Ian Lyall