Allergy Therapeutics17 May '22
...from last year...
Company overview:
AGY is a visionary immunology business focused on R&D of allergy treatments and operating in Europe and looking forward to US market opportunity. The company specializes in diagnosis and treatment of allergy. What differentiates them is that average treatment in the market is of around 12-15 course injections, whereas theirs consists of 6. They have growing market share in EU and aim to enter the largest allergy market – the US, further supported by 8 new products in their pipeline.
AGY has generated a 25% pre-R&D increase in operating profit in 2020. Operating performance in 2016 was affected by big expenditures on R&D. 2020 gross performance has supported successfully the R&D investments in the group. The company has seen significant increase in cash with low movements in accruals. Cash is expected to further increase, and operating profit is expected to be 8% above expectations.
Latest report consisting the preliminary annual results are definitely in favour of the stock. Revenue grew by 8% reaching the Stockopedia forecasted figure of £84.3m. Net profit is above the forecast at £2.9m and gross profit is ahead of 2020 figures. We should note that profit for the year is significantly below the last year’s level due to high R&D cost (more than double the 2020). Outlook is positive and they have new trials coming
Projects:
in the pipeline currently is the vaccine for peanuts (VLP Peanut ex-vivo), which is undergoing a study, the completion of which is expected in Q3 2021. The results are important for the purpose of opening an Investigational New Drug application with the US FDA. They are in an exploratory field study of a Grass MATA MPL clinical development program.
Short analysis:
Cash up by 8.9% yoy
Net debt is negative, meaning cash comfortably covers the debt of the company
CA/CL = 3.17
Cash ratio = 2.20
Interest coverage = 8.21
P/S = 3.11
BV ps = 7.17, growing at 1.7% CAGR
Operating profit = £4.03m, compared to £8.3m
Gross profit Margin = 73.8%...
....from WealthOracleAM
https://wealthoracle.co.uk/detailed-result-full/AGY/162