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(Alliance News) - Allergy Therapeutics PLC on Monday said its loss widened and revenue fell, with costs going up as new research studies progress, but predicted improved sales in the second half of the year thanks to higher demand in the seasonal allergy market.
Allergy Therapeutics is a West Sussex, England-based commercial biotechnology company focused on the treatment and diagnosis of allergic disorders, including through vaccines.
Its shares had been suspended from trading on AIM in January, due to the delayed publication of the interim results, but were restored on Monday morning. Allergy Therapeutics was down 70% at 1.79 pence in London on Monday morning.
Allergy Therapeutics said its pretax loss for the six months ended December 31 widened to GBP8.2 million, from GBP7.3 million in the same period of 2021. Gross profit decreased 28% to GBP25.8 million from GBP35.9 million.
Allergy Therapeutics said revenue for the half-year was down 18% to GBP39.9 million from GBP48.7 million the year before. It attributed this to a voluntary production hiatus in early October 2022, when its Freeman facility in Worthing, England was closed to facilitate site improvements. Production resumed on October 28.
Allergy Therapeutics' cost of sales rose 10% to GBP14.1 million from GBP12.8 million, while administrative expenses increased 12% to GBP11.9 million from GBP10.6 million, after the company increased IT spending.
Research and development costs increased by 69% to GBP8.5 million from GBP5.0 million. Allergy Therapeutics said this was mainly due to preparations for its P101 peanut allergy study and the initiation of its G306 Pollinex Quattro grass study.
Allergy Therapeutics had GBP15.2 million in cash at December 31, down from GBP20.5 million at June 30, 2022.
Allergy Therapeutics said it usually generates around one-third of total revenue in the second half of the year ending June 30. It expects sales for the second half-year to continue at a slightly improved trend compared with that seen in the first six months.
Sales for the next financial year are expected to be slightly reduced, with investment in multiple clinical trials, including the G306 grass study, causing increased research and development costs.
Allergy Therapeutics also expects to require additional funding from around September onwards for trading, continuing research programmes, capital expenditure and working capital. It said it has had "positive" discussions with some shareholders but reported no "binding arrangements" so far.
Allergy Therapeutics noted that material uncertainty remains regarding its ability to continue as a going concern. This is due to multiple factors, including the risk that the G306 study is unsuccessful, and the risk that existing investors are unable or unwilling to contribute further funds.
By Emma Curzon, Alliance News reporter
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