REG - Allergy Therapeutics - Trading Update and Notice of Results

Allergy TherapeuticsAnnouncement

15/07/2022 07:00

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RNS Number : 5719S  Allergy Therapeutics PLC  15 July 2022

 

 

 

Allergy Therapeutics plc

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

 

Trading update for the year ended 30 June 2022 & Notice of Results

 

-     Phase I VLP Peanut PROTECT trial incorporating ground-breaking VLP
technology proceeding as planned with site initiation visits imminent

-     Pivotal Phase III Grass MATA MPL trial on track to start in 2022
with US and EU sites being contracted ahead of site initiation visits with
results expected in Q4 2023

-     Robust 2022 trading with revenue expected to be £72.8m (2021:
£84.3m) on streamlined portfolio

-     Expenses for 2022 significantly lower than planned due to effective
cost controls

-     Strong cash position of £20.5m (2021: £40.3m) to support the
Group's two key clinical trials

 

 

15 July 2022 Allergy Therapeutics plc (AIM: AGY), the fully integrated
commercial biotechnology company specialising in allergen immunotherapy, today
announces its trading update for the year ended 30 June 2022 ahead of its Full
Year Results to be announced on Thursday 29 September 2022.

 

Financials

 

The Group expects revenue for the year ended 30 June 2022 to be £72.8m (2021:
£84.3m) representing a 14% reduction on a reported basis (down 9% on a
constant currency* basis). This short-term revenue decrease is primarily due
to the previously disclosed and planned strategic streamlining of older
products to maintain focus on high value and highly differentiated short
course subcutaneous immunotherapy (SCIT) and innovative allergy treatments.
The underlying business continues to perform.

 

Effective cost controls implemented alongside the Group's significant clinical
progress have offset the revenue reduction. The operating profit pre-R&D
for the 2022 year is however expected to be below consensus due to last minute
delays of goods in supply chain of £1.4m but this will be offset by lower
R&D expenses created by phasing of work on the two key clinical trials
resulting in a net profit expected to be in line with consensus.

 

In 2023, sales are expected to return to their previous near double-digit
growth levels although costs are likely to increase further due to inflation
and the end of Covid-19 restrictions relating to travel, allowing a return to
scientific conference attendance. There will also be additional investment in
the supply chain to maintain regulatory compliance and future expansion.

 

The cash balance at the end of June 2022 was £20.5m (30 June 2021: £40.3m)
as a consequence of executing the Group's R&D pipeline delivery.

 

Based on current assumptions and as previously stated, the Group expects to be
able to fully fund, with existing cash resources and some additional debt, the
upcoming pivotal Phase III trial for Grass MATA MPL and the Phase I PROTECT
trial for VLP Peanut, which are both on track to commence later in 2022.

 

Commercial

 

Rapid spread of the Covid-19 Omicron variant impacted Group performance, with
physicians in Germany being redeployed to support the Covid-19 vaccination
efforts. The challenges to the supply chain caused by the continued spread of
Covid-19 and manufacturing upgrades, which led to delays in shipping, are
expected to be resolved in 2023. Further to this, the regulatory environment
continues to be a challenge. The Group is managing this by continuing to
invest in market access expertise. The Group sees the transition from a
named-patient product market to a registered market to be an important
mid-term opportunity. This is being capitalised on through investments in
clinical trials such as the upcoming Grass MATA MPL G306 and VLP Peanut
PROTECT studies.

 

Given the circumstances, the business has performed robustly and continued to
grow in most markets.

 

Pipeline

 

Preparations are well underway to ensure the Group's two priority clinical
development programmes, Grass MATA MPL and VLP Peanut, remain on track in
2022.

 

Following a successful submission of the Investigational New Drug (IND)
application to the US Food and Drug Administration (FDA), sites for the first
in human Phase I PROTECT trial investigating VLP Peanut, the Group's peanut
allergy vaccine candidate, have been established and the trial sites are being
contracted. As previously communicated, the Group expects top line data from
that trial in H1 2023.

 

The pivotal Phase III clinical trial (G306) investigating the Group's
short-course grass pollen immunotherapy candidate, Grass MATA MPL, is also on
track with US and EU sites being contracted ahead of site initiation visits,
which are expected to start later this quarter.

 

 

Manuel Llobet, CEO at Allergy Therapeutics, stated: "The Group has performed
robustly despite tough conditions this year. We are now ready to start two key
clinical trials of innovative products that will provide significant future
market opportunities.

 

"At this year's European Academy of Allergy & Clinical Immunology (EAACI)
congress, one of the Group's presentations on VLP Peanut was selected as one
of the three most outstanding abstracts for the 2022 EAACI meeting for
innovative clinical science. We are proud to be developing this
ground-breaking product and look forward to seeing the results of the first in
human trial next year. We believe that both Grass MATA MPL and VLP Peanut are
market leading products with the ability to give patients outstanding
treatment."

 

*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
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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