Allergy Thera. Share News (AGY)

LONDON (Alliance News) - Allergy Therapeutics PLC said Wednesday half year profit fell due to higher research and development costs, as the company prepares for "pivotal" 2018 clinical trial results.

For the six months ended December 31, pretax profit fell to GBP6.4 million from GBP7.2 million the year prior. This was despite revenue rising to GBP42.2 million from GBP40.4 million the year before.

Profit performance was hurt by a sharp increase in research and development costs to GBP5.9 million. In the previous half year, research costs amounted to GBP3.8 million.

"2018 is set to be a pivotal year for Allergy Therapeutics with the key Grass MATA MPL Phase II trial on course for readout in the second half of the calendar year," Allergy Chief Executive Officer Manuel Llobet said. "This could provide us the platform to expand into the lucrative US market."

"In the first half of this year," Llobet added, "we continued to outperform the wider market and delivered an increase in revenue at constant currency despite an abnormally weak pollen season, demonstrating the strength of our differentiated products. This reflects the quality of the group's highly convenient, ultra-short course, aluminium-free therapy, enabling us to continue to gain market share."

Shares in Allergy were 3.1% higher at 26.30 pence on Wednesday.