Allergy Therapeutics: Trading Update, 15% growth in revenues
‘15% constant currency revenue growth’
‘Double-digit compound annual revenue growth over the past 18 years’
Allergy Therapeutics plc (AIM:AGY), the fully integrated specialty pharmaceutical group specialising in allergy vaccines, today provides a trading update for the year ended 30 June 2017 ahead of its Preliminary Results to be announced in September 2017.
Revenues for the year are expected to be ahead of market expectations at £64.1m (2016: £48.5m). This strong performance represents 15% annual growth on a constant currency basis and 32% on a reported basis which reflects the favourable euro exchange rate. The Company is continuing to gain market share within its core markets in Europe. Revenues have grown over the past 18 years at a double-digit compound annual growth rate. Research and development expenditure for the 2017 financial year is anticipated to be lower than market expectations due to the phasing of activities across the year end and these costs will now be incurred in financial year 2018. The ongoing pipeline trials continue to progress well and timing remains in line with Board expectations.
The cash balance at the end of June 2017 was £22.1m (30 June 2016: £23.4m).
Allergy Therapeutics’ market penetration has continued with strong growth in Pollinex Quattro and Pollinex. Venomil sales have also performed well due to the pre-stocking of raw materials compared to elsewhere in the market where there have been shortages of stock. Sales of the newer products in the Group’s portfolio (Synbiotics and Acarovac) continue to develop well.
In Europe, recruitment of patients for the pivotal Phase III PQ Birch trial is on track with the trial still expected to start in the autumn of 2017. Likewise for the US, the Phase II Grass MATA MPL trial is also still planned to start this autumn. Patients for the Acarovac Quattro Phase I trial are being recruited and results continue to be expected in the autumn of 2018.
Manuel Llobet, CEO commented:
“Revenue growth of 15% at constant currency reflects the continued strong performance of the product portfolio and its growing market share. Our successful strategy focuses on our patient-convenient products and controlled investment in our development pipeline to expand our addressable market. Our double digit CAGR of revenue over the past 18 years demonstrates that we have a robust, reliable and successful business model.”