Allergy Therapeutics Excellent performance shown in FH1’17 Interim results – Zeus Capital

Allergy Therapeutics Plc (LON:AGY) the UK-based, specialty pharmaceutical company focused on the development, manufacture and sale of vaccines and other products for the treatment and prevention of allergies, today reported its Interim results for the 6 months to Dec 31, 2016, traditionally the company’s strongest half due to the clinical seasonality of allergy vaccination programmes. These Interim results provide greater detail on the company’s excellent performance, as indicated in January in the trading update, and support our upgraded full year revenue forecasts at that time. Net sales grew by 39.3% (18% at CER) to £40.4m, giving rise to adjusted EBITDA pre-R&D of £12.3m and net cash of £24.4m (as at Dec 31, 2016). Importantly, in broadly flat markets AGY continued to increase its share (to 13% from 12%), a reflection of the strong quality and advantages of its leading Pollinex® Quattro allergy vaccines. On the basis of this performance our sales forecasts for FY2017 and beyond were upgraded. We are increasingly confident that the strength of the core business combined with the advancing product pipeline (with PQ Birch now in phase III and Acarovac MPL in phase I) will be duly recognised by investors and that the current share price represents an attractive entry level relative to our risk-adjusted NPV of 69p per share.

Strong financials: In the 6 months to Dec 31, the core business manufacturing (UK-based) and selling AGY’s highly competitive ultra-short-course PQ allergy vaccines into mainly European markets generated £40.4m net sales. Currency movements benefitted net sales by approximately £6.2m (assuming constant currency at last year’s rates). Excluding this effect, sales grew by 18% from £29.0m (FH1’16) to £34.2m (FH1’17). Gross sales (pre-German rebate) at CER reached £37.4m (FH1’16: £31.4m, +19%). Gross margin during the period increased to 78% compared to 75% in the prior year period reflecting the currency impact on the top-line. Adjusted pre-R&D EBITDA was £12.3m, up from £8.9m in FH1’16, reflecting the lower R&D £3.8m spend in FH1’17.

Outlook: Given the solid FH1’17 sales performance highlighted in the January trading update we raised our net sales forecasts for FY’17 to £61.0m (previously £54.8m) which assumes growth of 26% y.o.y. AGY’s gross profit will continue to benefit from currency movements (74% margin forecast). With the European PQ-Birch301 phase III now underway and the phase I clinical trial of Acarovac MPL also ongoing, we now expect AGY to invest around £11.5m in R&D in FY’17. We expect AGY will report a small EBITDA loss in FY’17 of £2.3m, but we believe this is justified by the longer-term value of having ultimately approved PQ products. Excluding these investments in R&D, we expect the company would generate positive adj. EBITDA of £9.2m in the current year.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Allergy therapeutics plc

More articles like this

Allergens dominate UK food recalls, finds study

More than half of food recalls in the United Kingdom over a 5-year period were due to allergens, according to a recently released study. Allergen-related recalls increased annually until 2019, peaking at 118 before decreasing to

Allergy Therapeutics welcomes new Non-Executive Directors

Allergy Therapeutics announced the appointments of Anthony Parker and Simon Shen to its Board as Non-Executive Directors effective immediately. “I would like to welcome Anthony and Simon. Southern Fox and ZQ Capital have been long-standing and supportive shareholders of Allergy

Allergy Therapeutics updates on its clinical programmes

Allergy Therapeutics plc (LON:AGY), the fully integrated commercial biotechnology company specialising in allergy vaccines, has announced that the first subject has been dosed in the pivotal Phase III G306 trial, to evaluate the efficacy and safety of

Allergy Therapeutics appoints two Non-Executive Directors

Allergy Therapeutics plc (LON:AGY), the fully integrated commercial biotechnology company specialising in allergy vaccines, has today announced the appointments of Anthony Parker and Zheqing (Simon) Shen as Non-Executive Directors of the Company, with immediate effect. Anthony represents

Allergies and Thanksgiving

As Thanksgiving and other holiday celebrations bring people around the table, Intermountain Healthcare dietitians say it’s crucial to take food allergies into consideration when planning the big meal. “A response to an allergic reaction can be

Allergy Therapeutics appoints Martin Hopcroft as interim CFO

Allergy Therapeutics plc (LON:AGY), the fully integrated commercial biotechnology company specialising in allergy vaccines, has announced the appointment of Martin Hopcroft to the role of Interim Chief Financial Officer (CFO). Martin will report into Chief Executive

Food business operator fined for allergy breach

A food business operator based in Newcastle, England has been fined in court after serving a dish containing peanuts to a woman with a peanut allergy, resulting in her being hospitalised. According to the Food Standards

Are restaurants taking allergies seriously?

In an engaging panel held at Twickenham Stadium as part of New Food’s Food Safety Conference 2022, experts came together to debate whether food allergy regulations in restaurants are sufficient. Here’s the highlights. Are restaurant allergy

Allergy Therapeutics Subscription to raise £7 million

Allergy Therapeutics plc (LON:AGY), the fully integrated specialty pharmaceutical company specialising in allergy immunotherapy, today announces a conditional Subscription by the Subscribers, Southern Fox and ZQ Capital (acting through its affiliate SkyGem), to raise £7 million