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Allergy Therapeutics expects first-half revenue rise; continues to take market share from rivals

The company has a portfolio of vaccines which treat the symptoms of various allergies, including dust mites, grass, pollen and venom
boy with cat allergy
Allergy now has a 14% share of the German allergy market, and the aim is to have a 20% share in every market it operates in

Allergy Therapeutics plc (LON:AGY) has told investors it expects to report a rise in revenues in line with expectations for the first half of its financial year as it continues to win market share in its key territories.

The speciality pharma group has made gains in highly competitive markets such as Spain, Germany, Austria and Holland over the past six months or so, despite an “abnormally weak” pollen season in Central Europe.

H1 revenues to rise 4.4% year-on-year

Allergy – which has a portfolio of patient-friendly allergy vaccines – said it had managed to take share away from its rivals in those countries and others thanks to a “focused sales and marketing strategy and its exclusive technology platform”.

As a result, the AIM-quoted firm said revenues for the six months ended December 31 are expected to grow 4.4% compared to the same period a year ago.

The company has been leveraging these additional revenues on current infrastructure to improve its operational margins pre-R&D.

This, along with careful planning of working capital and capex investments, has allowed the group to maintain a healthy cash position of £25.8mln (31 Dec 2016: £27.8mln).

Second half started well

Pollinex Quattro – the firm’s vaccine designed to treat the symptoms of seasonal allergens such as grass, trees etc – remains a key growth driver, while its Venomil venom allergy vaccine and dust mite allergy treatment, Acarovac Plus, are also performing strongly.

Post-period end, Allergy said trading “remains positive” and it is confident in the outlook for the business for the remainder of the year.

“Our strategy to prioritise patient-friendly vaccines with focus on patient compliance and improving adherence rates is demonstrating success,” said chief executive Manuel Llobet.

“Our portfolio of ultra-short course vaccines is driving our market penetration in Europe and preparing the ground for a successful US entry.

“All our key development programmes are being executed according to plan and our long-term strategic objectives, are on track.”

Pipeline remains strong

AGY isn’t standing still though and is looking to add new products to its portfolio.

Currently in the pipeline is a treatment for people allergic to birch pollen, which is about to undergo a European phase III clinical trial during the birch pollen season (normally March to June) after the recruitment phase was completed earlier this month.

If the trial proves that PQ Birch – as the vaccine is known – safely reduces the symptoms of sufferers, the study would pave the way for marketing authorisation.

Results from a phase II trial of its PQ Grass treatment are expected in the second half of this year, with the recruitment stage now well underway. Once the results are in, Allergy bosses will meet with European and US regulators to discuss the design of a phase III study.

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