CORRECT (JUL 11): Allergy Therapeutics To Outperform Market Views

(Correcting anticipated full year revenue figure in the second paragraph) (Alliance News) - ...

Alliance News 12 July, 2019 | 1:07PM
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(Correcting anticipated full year revenue figure in the second paragraph)

(Alliance News) - Allergy Therapeutics PLC expects earnings for the year ended June 30 to be ahead of initial forecasts, the biotechnology company said on Thursday.

It expects a revenue of GBP73.7 million for the full year, rising 8% from the GBP68.3 million from 2018. It posted a pretax loss of GBP6.9 million in financial 2018.

Chief Executive Manuel Llobet said: "Our strong, technically advanced and convenient product portfolio continues to perform well in the market and has facilitated 20 years of strong revenue growth.

"It is a testament to our patient-focused strategy that we continued to increase market share this year. We have made further progress on the pipeline portfolio and the group's meeting with the Swiss regulatory authorities was an important milestone in the development of our exciting peanut product."

The company anticipates a 76% year-on-year rise in its cash balance. As of the end of June, Allergy Therapeutics said it had a balance of GBP27.4 million, though GBP6.0 million of this was the result of a settlement from a litigation hearing with Inflamax Research Inc.

It also anticipates its overheads, the ongoing expenses, to be in line with market expectations. This is partly due to research and development costs falling to GBP14.0 million from GBP16.0 million in 2018.

In financial 2018, total overheads were GBP58.7 million, due to increased clinical study and administrative expenses that year.

Because of its financial performance, the group said it will be able to cover the costs of its Grass MATA MPL Phase 3 trial, which is due to begin in autumn 2020. If the trial is successful, the company will pursue a US regulatory filing which could allow it access to a market worth GBP2.0 billion.

Its market share in Europe increased by 0.6 of a percentage point during a 12 month period ended March 31, the group estimated, without providing its actual market share percentage. After "continued progress" of its European business, Allergy Therapeutics said it is considering distributing products in China and other areas.

Following discussions with Swissmedic, the Swiss regulatory authority, the company expects to conduct maiden human trials of its virus-like particle peanut product in the first half of 2020.

Allergy Therapeutics will report its results for the year ended June 30 on September 25.

Shares in the company were up 1.5% at 13.70 pence each in London on Thursday morning.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Allergy Therapeutics PLC 11.85 GBX 0.81 -
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