Shield Therapeutics revenues surge following commercialisation deal

Shield Therapeutics saw revenues rocket in the second half of its trading year following a commercialisation agreement with European pharmaceutical specialist Norgine.

Shield now anticipates revenues will soar more than 1,780% to £11.9m after agreeing to license its iron deficiency treatment, Feraccru, to Norgine in most European countries. Feraccru will see a wider European launch after the duo concludes pricing and reimbursement negotiations.

Shield was also said to be in discussions with third parties for the licensing of Feraccru commercial rights in certain other countries.

The AIM-listed group saw its cash position contract 26.3% to £9.8m on the back of an increased research and development spend in the year ended 31 December but remained confident that its “cash runway” would extend into 2020 based on currently planned expenditure on R&D.

Chief executive Carl Sterritt said: "Shield has entered 2019 in good shape."

"I have been encouraged by the sales performance of Feraccru in the UK and Germany, where upward sales momentum has been maintained through the last twelve months despite the lack of active sales promotion."

Shield shares, which lost more than 80% of their value to below 17p last February when Phase III trials of Feraccru failed to achieve their primary efficacy endpoint, picked up 3.48% to 38.70p on Thursday morning.