West Sussex's Allergy Therapeutics looks to second half of year to boost revenues

By Tom Kilkelly

20 June 2023

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A West Sussex commercial biotechnology company specialising in allergy vaccines, Allergy Therapeutics has announced both its interim results for the six months ended 31 December 2022 and the lifting of its trading suspension on AIM.

The company posted an 18 per cent decrease in revenue, going from £48.7 million in H1 of 2022 to £39.9 million this time around. Gross profit also decreased by 28 per cent to £25.8m, from £35.9 million in H1 2022. These drops have been described by Allergy Therapeutics as consequences of the short-term pause in production in October 2022.

As a result of publication of the 2022 Annual Report and Accounts and publication of the company's interim results, trading in the Company's ordinary shares on AIM was restored in the start of the trading day on June 19.

When discussing the company's outlook on its financial performance, a spokesperson for Allergy Therapeutics said: ''Owing to the seasonality of the pollen allergy market, approximately one third of revenue is generated in the second half of the financial year.

''Compared to the prior comparable period, the Group expects sales for the second half year to 30 June 2023 to continue at a slightly improved trend when compared with the trend seen for the first half of the year, with correspondingly lower gross margins. Overheads before R&D and exceptionals are expected to be similar to the first half year.

''As a result of the manufacturing capacity that needs to be allocated to clinical batches, sales for the financial year to 30 June 2024 are expected to be slightly lower than the comparable period, with consequently reduced gross margins, while overheads before R&D and exceptionals are expected to be similar. The investment in clinical trials for the G306 grass study, G308 paediatric study, B302 birch study and P101 peanut study will result in a stepped increase in R&D costs. Further investment in plant and equipment is planned to support the continuing improvements in manufacturing and quality.''

By Tom Kilkelly

Tom Kilkelly started working as a freelance journalist for The Business Magazine following his graduation from UCL in 2022.

During his studies Tom became very interested in the works of Irish authors including Samuel Beckett and Flann O'Brien (Brian O'Nolan).

His current role as a freelance business reporter is his first exposure to the world of business journalism. Working at TBM has given Tom the chance to really get to grips with the goings-on in the business hive that is the South East.