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(Alliance News) - Drugmaker Shield Therapeutics said on Wednesday a payment from a commercial partner contributed to a sharp revenue rise in the first half of the year.
In the six months to June 30, the company narrowed its pretax loss by 69% to GBP2.5 million, on revenue of GBP2.6 million. In the same period last year, the company made a pretax loss of GBP8.0 million on revenue of GBP495,000.
The revenue boost was largely attributed to a GBP2.2 million payment from specialist pharmaceutical company Norgine BV, following a successful outcome of a clinical trial of the Feraccru iron deficiency drug.
Selling, general and administrative expenses fell 43% year-on-year to GBP3.6 million from GBP6.3 million. Selling costs alone fell to GBP100,000 from GBP2.6 million, and Shield said this was due to the company's February 2018 decision to adopt an out-licensing commercialisation strategy rather than self-commercialisation.
Aside from its lead Feraccru product, Shield said it has also restarted its PT20 medication used for hyperphosphatemia, a disorder where there is an elevated level of phosphate in the blood.
PT20 did not generate any revenue during the half but it has the "potential to be a significant product in the phosphate binder market", Shield said.
Looking ahead, the company expects Feraccru sales to grow in the second half and administrative costs will "continue at levels seen during the first half".
In July, Shield received regulatory approval for Feraccru in the US, where it will be marketed as Accrufer.
Chief Executive Carl Sterritt said: "Feraccru sales in Germany and the UK are beginning to increase significantly on the back of Norgine's enhanced promotional activities. Since the period end, we have achieved the value-enhancing milestone of securing US approval of Accrufer, the fundamental step towards being able to exploit the world's largest prescription pharmaceuticals market.
"The board and I have great confidence in the future of Shield and we look forward to updating the market on progress with ongoing discussions relating to both potential US and Chinese commercialisation partners."
Shares in Shield were down 0.3% at 166.00 pence each in London on Wednesday.
