Allergy Therapeutics profits rise as it spends less on R&D

Specialty pharmaceutical group Allergy Therapeutics announced its unaudited interim results for the six months ended 31 December on Wednesday, reporting a 10.6% improvement in revenue on both a reported and constant currency basis, to £46.7m.

The AIM-traded firm said pre-research and development operating profit was 27% higher at £15.7m, which the board said was largely the result of investment in the commercial business last year, and a higher gross margin.

Research and development expenditure was lower at £5.0m, compared to £5.9m in the first half of the prior year, which was put down to a lower level of activity.

Cash balances stood at £31.6m, up from £15.5m at the end of June.

Allergy Therapeutics completed an oversubscribed equity raise of £10.6m gross in July, to support the development of the group's clinical pipeline.

It said it increased its market share in Germany to 14.5% from 13.7% year-on-year, adding that the breadth of its portfolio was demonstrated by “strong performance” from ultra-short course products as well as venom and modified allergen house dust mite therapies.

During the period, it completed the PQ Birch phase 3 trial, with a data readout expected before the end of the first quarter of 2019.

It also said the scale-up of Polyvac Peanut was progressing well, with the intention to begin a first-in-human trial in 2019.

The modified allergen house dust mite phase 1 trial had completed last patient last treatment, the firm said, with readout expected in the first half of 2019.

“The group has made a strong start to the financial year,” said chief executive officer Manuel Llobet.

“Our ultra-short course products continue to drive good sales growth in a relatively flat market and the group's pre-research and development operating profit has increased as a result of investment into our commercial business last year and our focused sales and marketing strategy.”

Llobet said 2019 would be a “very important year” for the group and, in particular, its ultra-short course technology platform, with the start of the pivotal phase 3 Grass MATA MPL trial for the US and Europe.

“With an increasing market share, a healthy balance sheet, and an exciting clinical pipeline nearing key value inflection points, we look to the future with confidence.”