REG - Allergy Therapeutics - Allergy to resume UK manufacturing production

Allergy TherapeuticsAnnouncement

28/10/2022 07:00

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RNS Number : 4690E  Allergy Therapeutics PLC  28 October 2022

 

 

 

Allergy Therapeutics plc

("Allergy Therapeutics", "ATL" or the "Group")

 

 

Allergy Therapeutics to resume UK manufacturing production in mid-November

 

 

28(th) October 2022 Allergy Therapeutics plc (AIM: AGY), the fully integrated
commercial biotechnology company specialising in allergen immunotherapy, today
announces that it will resume production at the Freeman facility, part of its
Worthing, UK manufacturing site, on 14(th) November.

 

The Group announced a short-term voluntary pause in production following an
internal review of its current operating processes. This pause was part of the
Group's previously communicated ongoing programme to improve the robustness of
its quality systems and build capacity across its manufacturing facilities but
was accelerated when it became clear that the capacity was unable to cope with
the commercial demand.

 

The pause in manufacturing occurred during a period of peak production prior
to the start of the pollen season in the spring. As a consequence, whilst it
is too early to determine the exact impact, it is currently estimated that
revenue will be between approximately 13% and 18% lower than market
expectations of circa £80m at current exchange rates for the year ended 30
June 2023. Business expenses for the same period are currently expected to
reduce by around £3m.

 

Work is continuing to further minimise the impact through cost control and
tight working capital management and delay in non-critical capital spend.

 

At the expected reduced levels of underlying profit, excluding research and
development costs, the terms of the NatWest revolving credit facility would
not allow use of the facility.

 

Manuel Llobet, CEO at Allergy Therapeutics, stated: "We took the difficult
decision to temporarily pause production at the Freeman facility to continue
delivering the highest standards of quality systems. We are now pleased to
have a clear timeline to resume our UK manufacturing activities."

 

 

This announcement contains inside information for the purposes of Article 7 of
Regulatory (EU) No596/2014.

 

- ENDS -

 

 

 

For further information, please contact:

 

Allergy Therapeutics

+44 (0) 1903 845 820

Manuel Llobet, Chief Executive Officer

Nick Wykeman, Chief Financial Officer

 

Panmure Gordon (Nominated Adviser and Broker)

+44 (0) 20 7886 2500

Freddy Crossley, Emma Earl, Corporate Finance

Rupert Dearden, Corporate Broking

 

Consilium Strategic Communications

+44 20 3709 5700

Mary-Jane Elliott / David Daley / Davide Salvi

allergytherapeutics@consilium-comms.com
(mailto:allergytherapeutics@consilium-comms.com)

 

Stern Investor Relations, Inc.

+1 212 362 1200

Christina Tartaglia

christina@sternir.com (mailto:christina@sternir.com)

 

 

Notes for editors:

 

About Allergy Therapeutics

 

Allergy Therapeutics is an international commercial biotechnology company
focussed on the treatment and diagnosis of allergic disorders, including
aluminium free immunotherapy vaccines that have the potential to cure disease.
The Group sells proprietary and third-party products from its subsidiaries in
nine major European countries and via distribution agreements in an additional
ten countries. Its broad pipeline of products in clinical development includes
vaccines for grass, tree and house dust mite, and peanut allergy vaccine in
pre-clinical development. Adjuvant systems to boost performance of vaccines
outside allergy are also in development.

 

Formed in 1999 out of Smith Kline Beecham, Allergy Therapeutics is
headquartered in Worthing, UK with more than 11,000m(2) of state-of-the-art
MHRA-approved manufacturing facilities and laboratories. The Group, which,
employs c.600 employees and is listed on the London Stock Exchange (AIM:AGY).
For more information, please see www.allergytherapeutics.com
(http://www.allergytherapeutics.com) .

 

 

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