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Trinity Delta view: Allergy Therapeutics’ FY21 pre-close trading statement has provided an update on the commercial impacts of COVID-19. Due to seasonality H1 typically represents 60-70% of FY revenues, and the robust performance in H121 appears to have continued into H221, although lower spend will have flattered both FY21 operating profit pre-R&D and earnings. However, there are knock on effects into FY22 due to a combination of the reversion of SG&A spend to prior levels, phasing of R&D investment, and a more streamlined commercial portfolio. On the R&D side, we draw attention to a number of important catalysts for key pipeline programmes during calendar H221. We intend to review our forecasts when additional information is available, and continue to value Allergy Therapeutics at £344.5m (53.8p/share), based on sum of the parts including a DCF of the commercial operations (£89.7m or 14.0p/share), an rNPV of the R&D pipeline (£210.3m, or 32.8p/share), and net cash.
Lighthouse
24 June 2021
Price | 24.6p |
Market Cap | £157.9m |
Primary exchange | AIM |
Sector | Healthcare |
Company Code | AGY |
Corporate client | Yes |
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.
Analysts
Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043
Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041
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