Trading Update: Revenues ahead of expectations

19th January 2017 | Allergy Therapeutics plc

 

Allergy Therapeutics (AIM:AGY), the fully integrated specialty pharmaceutical company specialising in allergy vaccines, today provides an update on trading for the six months ended 31 December 2016 ahead of its unaudited interim results to be announced on 29 March 2017.

–      H1 reported revenues ahead of expectations

–      Regulatory update: Pollinex Quattro clinical development programs to proceed as planned

Financials

Reported revenues for the six months ended 31 December 2016 are expected to be £40.4m (2015: £29.0m), representing 17.9% organic growth at constant currency* (39.3% growth on a reported basis, aided by the impact on euro revenues of the weak pound). This growth reflects continued strong momentum across the majority of the Company’s key markets. In a flat European market, the Company is fuelling its growth by increasing market share in most of its key markets. The main contributions in terms of net sales growth were generated in Germany, Austria, Spain and The Netherlands. In terms of products, growth is being provided across the whole portfolio, with the Company’s ultra-short course aluminium-free therapies being the main contributor. The Board expects continuing growth in the second half of the year.

The strength of the euro against sterling has also led to higher overheads and R&D costs as most of these costs are incurred in continental Europe in euros but are reported in sterling.

The cash balance at 31 December 2016 was £27.8m (£33.2m at 31 December 2015).

Regulatory

Further to the Company’s announcement on 27 June 2016, the Company has held discussions with the US regulatory authorities in relation to its US Grass MATA MPL programme and is proceeding as planned with the safety trial (G104) in the USA and the Phase II conjunctival provocation test dose selection study (G205) in Europe in 2017, ahead of the planned pivotal Phase III trial (G306).

Commenting  Manuel Llobet, CEO said:

“The Company’s progress continues according to our long-term plans both in gaining market share in our main territories and with our clinical development. Our 18% top line organic growth in real terms reflects the quality of our products, technology and team, and the underlying convenience of our ultra-short course vaccines. We are excited by the prospects of the Company as we continue expanding our operations in Europe, progressing our development pipeline and moving forward with a world-class portfolio of allergy vaccines.  We are confident about the full year and look forward to updating shareholders on further progress throughout 2017.”

*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.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.


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