Allergy Therapeutics To Start New Approval Studies In Q315
Edison | Jul 07, 2015 08:02AM ET
Preparing to unlock US value of Pollinex Quattro
Allergy Therapeutics (LONDON:AGY) will start PQ Grass US approval studies in Q315. The convenience of the ultra-short course vaccine and US physician preference for subcutaneous immunotherapy (SCIT) could lead PQ to gain a large share of the c $2bn allergy immunotherapy (AIT) market given that it could be the first licensed seasonal SCIT. The acquisition of Alerpharma reinforces AGY’s position in the c €72m Spanish AIT market and enlarges its manufacturing capability. Our DCF valuation increases to £260m.
PQ Grass; its features fit the US market
US market dynamics could be in favour of PQ immunotherapy products given the convenience of the ultra-short course vaccine, physicians’ preference for aluminium-free vaccines, supported by the strong safety and efficacy profile established in Europe. AGY has funding in place for approval studies following the £20.8m gross placing of 94.1m shares at 22.1p, which could lead to launch in 2019. PQ Ragweed and PQ Tree are the next products in line, leading us to a total peak sales estimate over $1bn in the evolving AIT market.
Alerpharma; a European growth injection
In June, AGY acquired Spanish immunotherapy company Alerpharma for an initial consideration of €3.8m and a c €2m potential earn out, creating critical mass and cross-selling opportunities with its Spanish subsidiary. The rationale for the acquisition is to reinforce the company’s position in the c €72m Spanish allergy immunotherapy market and to gain market share from the current 3% position.
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