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(Alliance News) - Allergy Therapeutics PLC on Friday said it expects annual revenue to fall and, while sales are set to improve in the year ahead, it flagged higher costs.
Revenue for its financial year that ended June 30 is expected to fall to GBP72.8 million from GBP84.3 million a year ago, though it touted "significantly lower" expenses due to cost controls.
"This short-term revenue decrease is primarily due to the previously disclosed and planned strategic streamlining of older products to maintain focus on high value and highly differentiated short course subcutaneous immunotherapy and innovative allergy treatments. The underlying business continues to perform," the company explained.
Further, operating profit before research & development costs is seen below consensus due to last minute delays of goods in supply chain. "This will be offset by lower R&D expenses created by phasing of work on the two key clinical trials resulting in a net profit expected to be in line with consensus," it added.
The firm expects its cash balance to nearly half to GBP20.5 million from GBP40.3 million, as it delivers on its research & development pipeline.
"We are now ready to start two key clinical trials of innovative products that will provide significant future market opportunities," said Chief Executive Officer Manuel Llobe.
The firm said while sales are expected to return to double-digit growth levels in 2023, "costs are likely to increase further due to inflation and the end of Covid-19 restrictions relating to travel"
The West Sussex-based commercial biotechnology company specialising in allergy immunotherapy
will publish is full year results on September 29.
Allergy Therapeutics shares were 1.9% lower at 17.90 pence each in London on Friday morning.
By Tom Budszus; tombudszus@alliancenews.com
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