Allergy Therapeutics

Commercialising and developing a differentiated portfolio

Update | 13 January 2022

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Allergy Therapeutics continues to trade solidly in a challenging environment. Its H122 trading statement confirmed six-month revenues to end-December 2021 of £48.7m (H121: £54.0m, down 5% on CER) reflecting commercial portfolio streamlining, phasing, and German headwinds. FY22 revenue guidance is for an upper single digit percentage decline on FY21, with pre-R&D operating profit in line with current consensus. A strong cash balance of £41.4m, when coupled with modest additional debt, will fund the ongoing Grass MATA MPL pivotal Phase III programme and Phase I trials for VLP Peanut. Resilient performance of the European allergy business and continued progress of the grass allergy programme underpin medium term prospects. Ahead of H122 results, we maintain our valuation of £350.7m (54.7p/share).

Year-end: June 30202020212022E2023E
Revenues (£m)78.284.378.381.1
Adj. PBT (£m)3.52.5(13.5)(18.5)
Net Income (£m)6.92.9(13.6)(19.2)
Adj. EPS (p)1.10.5(2.1)(3.0)
Cash (£m)37.040.323.415.8
EBITDA (£m)12.28.2(8.3)(13.3)
Source: Trinity Delta Note: Adjusted numbers exclude share-based payments and exceptionals.
  • Autumn start for second Grass MATA MPL Phase III Positive top line results from the G309 exploratory field trial (October 2021 Lighthouse) showed a statistically significant improvement in combined symptom and medication score vs placebo in both the six week (29.1% improvement) and 14-week (36.8%) arms. Full data, which has informed the design of the G306 pivotal Phase III trial that is on track to initiate in Q3 CY22, will be presented at a future scientific conference.
  • Stage set for PROTECT peanut study  An IND has been submitted to the FDA for the Phase I PROTECT study of VLP Peanut in peanut allergic adults. Following expert consultation, an adjustment to the trial protocol (ie moving planned paediatric and adolescent arms into a future Phase II study) accelerates expected read out of top line results to H123 (vs Q423). VLP Peanut clinical product has been manufactured, tested, and released in preparation for Phase I start.
  • Positioned for the longer-term  Portfolio rationalisation (focussing on differentiated SCIT and innovative therapies), coupled with German headwinds and ongoing COVID impacts (Italy and Germany) impacted H121 revenues. Other regions (ie Spain) and key products (Pollinex, Venomil, Acarovac) grew strongly. On a like for like product and phasing basis, H122 sales were up 3% vs a reported decline of 10% (or down 5% CER) to £48.7m. End-December 2021 cash of £41.4m, plus a small amount of additional debt, will cover funding of the G306 and PROTECT studies.
  • £350.7m, or 54.7p/share valuation We plan to review our valuation and revisit forecasts post-H122 results (March 3). Our current valuation is £350.7m (54.7p/share), including cash and opex. We value the existing commercial business at £91.1m (14.2p/share) with the pipeline contributing £222.8m (34.7p/share).


13 January 2022

Market Cap£202.7m
Enterprise Value£161.6m
Shares in issue643.6m
12 month range17.8-40.5p
Free float21.8%
Primary exchangeAIM London
Other exchangesN/A
Company codesAGY
Corporate clientYes

Company description

Allergy Therapeutics specialises in the diagnosis and treatment of allergy. The existing European business generates c £80m annual sales. Near-term R&D efforts are focussed on the Pollinex Quattro platform, whilst in the medium-term the VLP platform is highly promising


Lala Gregorek
+44 (0) 20 3637 5043

Franc Gregori
+44 (0) 20 3637 5041

Exhibit 1: Summary of financials
Source: Trinity Delta, Allergy Therapeutics



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