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Allergy Therapeutics higher as revenues rise 10.6%, cash reserves grow

The drug developer's trading statement revealed the latest numbers were in line with market forecasts

dust mites
As the name suggests, the company creates and sells inoculations against common allergies such as dust mites (pictured)

Allergy Therapeutics PLC (LON:AGY) saw its shares push higher on Wednesday after it revealed another year of revenue and market share growth as it ended 2018 financially well-resourced.

The company, which as the name suggests, develops inoculations against common allergies, also said it expects to make significant clinical headway in 2019.

READ: Allergy Therapeutics says revenues “up strongly on prior year” in update ahead of AGM

The numbers first: turnover grew by 10.6% in the 12 months ended December 31, with the main contributions to sales coming from Germany, Austria, Switzerland and the Netherlands.

Its most popular products were the group's ultra-short course, aluminium-free treatments such as Pollinex and Pollinex Quattro as well as Acarovac (dust mite) and Venomil (wasp sting).  

At the period-end, the company had cash of £31.6mln, up from £25.8mln. The figures were in line with market forecasts.

"This is another period of revenue growth and continued gain in market share for Allergy Therapeutics, in line with our mid and long-term strategy,” said chief executive Manuel Llobet.

Significant progress is expected in the clinic this year. Top-line results from the Phase III trial of its PQ Birch jab are expected in the first quarter, while a read-out from a Phase I assessment of Acarovac is expected sometime in the next six months.

Meetings with the US Food & Drug Administration and the German regulator in relation to its PQ Grass trials are scheduled for the first three months of 2019, the company said.

“The group is also making good progress across its clinical pipeline, with a number of key developments anticipated for the first half of this year. We see momentum in the business and look forward to updating the market at our interim results," said CEO Llobet.

Stronger-than-expected growth

In a note to clients, analysts at ‘house’ broker finnCap commented: “The six-month trading update to 31 December 2018 demonstrates stronger-than-expected growth”.

They added: “The stock trades at a c.65% discount to its peer group in terms of EV/Sales as the market anxiously awaits the Phase III PQ Birch data, due in Q1 2019.”

The analysts said they had left their forecasts for Allergy Therapeutics unchanged for the full-year 2019 at this point and reiterated a 47p target price on the stock.

In early afternoon trading, shares in Allergy Therapeutics were 4% higher at 14.25p.

 -- Adds analyst comment, share price --

Quick facts: Allergy Therapeutics PLC

Price: 11.15 GBX

AIM:AGY
Market: AIM
Market Cap: £70.93 m
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