REG - Allergy Therapeutics - Trading Update

Allergy TherapeuticsAnnouncement

24/06/2021 07:00

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RNS Number : 9212C  Allergy Therapeutics PLC  24 June 2021

 

 

 

Allergy Therapeutics plc

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

 

Trading update

 

-     Operating profit strong and expected to be well ahead of market
expectations

-     Expenses for 2021 significantly lower than expectations due to
COVID-19 and good cost management.  Some phasing of R&D and commercial
costs expected to be carried over into 2022

-     Strong cash position expected at year end

-     Successful ImmunoBON launches in Germany and Austria supported by
encouraging clinical data

 

 

24 June 2021 Allergy Therapeutics plc (AIM: AGY), the fully integrated
commercial biotechnology company specialising in allergy immunotherapy, today
announces a pre-close trading update for the year ended 30 June 2021. The
Group plans to announce its post year end trading update on 14 July 2021 and
the audited preliminary results on 23 September 2021.

 

Financials

 

The Group expects operating profit for the full year 2021 to be well ahead of
market expectations, with robust sales growth helped by the Euro exchange
rate, reflective of a strong Group performance in challenging market
conditions. ImmunoBON, the patented protein-based oral product for the general
treatment of allergies, was successfully launched in Germany and Austria and,
although not material to the Group sales yet, shows much potential. This
potential has been further strengthened by recent encouraging clinical data.

 

Cost savings have been driven by COVID-19 related restrictions to travel and a
reduction in scientific conference attendance, as well as delays to some
commercial projects into 2022. As a result, expenses for the 2021 year are
expected to be significantly lower than market expectations despite higher
Brexit and compliance costs. Further, some research and development
expenditure originally expected in 2021 will now be incurred in 2022, due to
phasing of those costs.

 

The Group's cash position at the year-end is also expected to be strong and
greater than at the prior year end.

 

In respect of the financial year to 30 June 2022, the Group's strategy of
improving the quality of its portfolio by streamlining a number of
non-differentiated older products and maintaining focus on short course
subcutaneous immunotherapy (SCIT) and innovative allergy treatments, alongside
the ongoing impact of COVID-19, means that net sales are expected to grow at
low single digit levels at constant rates. Expenses are expected to increase
above the historic long-term trend and above current market expectations due
to the factors noted above in commercial projects, investments and the
expected period of higher research and development activity, affecting
operating margin.

 

Based on current assumptions, and as previously stated, the Group expects to
be able to fully fund the pivotal Grass MATA MPL Phase III field studies and
the exciting Phase I Peanut programme with existing cash resources and a small
amount of additional debt.

 

 

Manuel Llobet, CEO at Allergy Therapeutics, stated: "The Group has continued
to perform strongly in a tough environment and I am proud of our response to
the challenges presented by the ongoing COVID-19 pandemic. Our focus on
developing a strong R&D pipeline has remained steadfast and we are looking
forward to both the ex-vivo peanut study results and the Grass MATA MPL
exploratory field study results in the early part of the next financial year -
both significant milestones in the progress we are making to bring new
immunotherapeutic treatments to allergy patients."

 

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

+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 / Ashley Tapp / Carina Jurs

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 has
achieved over 9% compound annual growth since formation, 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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