Last checked at 28 Oct 2022 07:00
Allergy Therapeutics plc
("Allergy Therapeutics", "ATL" or the "Group")
Allergy Therapeutics to resume UK manufacturing production in mid-November
28th October 2022 Allergy Therapeutics plc (AIM: AGY), the fully integrated commercial biotechnology company specialising in allergen immunotherapy, today announces that it will resume production at the Freeman facility, part of its Worthing, UK manufacturing site, on 14th November.
The Group announced a short-term voluntary pause in production following an internal review of its current operating processes. This pause was part of the Group's previously communicated ongoing programme to improve the robustness of its quality systems and build capacity across its manufacturing facilities but was accelerated when it became clear that the capacity was unable to cope with the commercial demand.
The pause in manufacturing occurred during a period of peak production prior to the start of the pollen season in the spring. As a consequence, whilst it is too early to determine the exact impact, it is currently estimated that revenue will be between approximately 13% and 18% lower than market expectations of circa £80m at current exchange rates for the year ended 30 June 2023. Business expenses for the same period are currently expected to reduce by around £3m.
Work is continuing to further minimise the impact through cost control and tight working capital management and delay in non-critical capital spend.
At the expected reduced levels of underlying profit, excluding research and development costs, the terms of the NatWest revolving credit facility would not allow use of the facility.
Manuel Llobet, CEO at Allergy Therapeutics, stated: "We took the difficult decision to temporarily pause production at the Freeman facility to continue delivering the highest standards of quality systems. We are now pleased to have a clear timeline to resume our UK manufacturing activities."
This announcement contains inside information for the purposes of Article 7 of Regulatory (EU) No596/2014.
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For further information, please contact:
Allergy Therapeutics
+44 (0) 1903 845 820
Manuel Llobet, Chief Executive Officer
Nick Wykeman, Chief Financial Officer
Panmure Gordon (Nominated Adviser and Broker)
+44 (0) 20 7886 2500
Freddy Crossley, Emma Earl, Corporate Finance
Rupert Dearden, Corporate Broking
Consilium Strategic Communications
+44 20 3709 5700
Mary-Jane Elliott / David Daley / Davide Salvi
allergytherapeutics@consilium-comms.com
Stern Investor Relations, Inc.
+1 212 362 1200
Christina Tartaglia
christina@sternir.com
Notes for editors:
About Allergy Therapeutics
Allergy Therapeutics is an international commercial biotechnology company focussed on the treatment and diagnosis of allergic disorders, including aluminium free immunotherapy vaccines that have the potential to cure disease. The Group sells proprietary and third-party products from its subsidiaries in nine major European countries and via distribution agreements in an additional ten countries. Its broad pipeline of products in clinical development includes vaccines for grass, tree and house dust mite, and peanut allergy vaccine in pre-clinical development. Adjuvant systems to boost performance of vaccines outside allergy are also in development.
Formed in 1999 out of Smith Kline Beecham, Allergy Therapeutics is headquartered in Worthing, UK with more than 11,000m2 of state-of-the-art MHRA-approved manufacturing facilities and laboratories. The Group, which, employs c.600 employees and is listed on the London Stock Exchange (AIM:AGY). For more information, please see www.allergytherapeutics.com.