Business
Trading update for the year ended 30 June 2023
Trading update for the year ended 30 June 2023.
About this update from Allergy Therapeutics Plc
[{"type":"text","content":"\n\n\nAllergy Therapeutics plc\n(\"Allergy Therapeutics\" or the \"Company\" or the \"Group\")\n \nTrading update for the year ended 30 June 2023\n \n10 August 2023: Allergy Therapeutics plc (AIM: AGY), the integrated commercial biotechnology company specialising in allergy vaccines, today announces its trading update for the year ended 30 June 2023.\n \nFinancials\n \nRevenue for the year ended 30 June 2023 is expected to be 16% lower at £61.0 million (2022: £72.8 million) as a consequence of the short-term pause in production that occurred during October and November 2022.\n \nThe underlying operating loss before research and development costs, and exceptional items is expected to be £13.3 million (2022: £3.4 million profit), reflecting the decline in revenue caused by the short-term pause in production, together with increased manufacturing and administrative costs.\n \nAfter an increase in research and development costs to support the initiation of the G306 trial for Grass MATA MPL and preparation for the P101 PROTECT peanut study, the underlying operating loss before exceptional items is expected to be £33.4 million (2022: £12.2 million loss).\n \nThese results are before fair value accounting for (i) the 33,333,332 warrants issued on 28 February 2023 and (ii) the substantial finance premium that is payable in the event that the G306 trial for Grass MATA MPL is successful and all amounts due under the £40.75 million senior secured loan facility (the \"Loan Facility\") are not repaid from the proceeds of the equity financing announced on 6 April 2023 (the \"Equity Financing\") by 6 January 2024, full details of which are set out in such announcement (the \"Financing Announcement\"). The Directors have reasonable expectations that the Phase III G306 trial will be successful. Pursuant to the terms of the Equity Financing, the Company is required to apply the proceeds of the Equity Financing in repaying amounts outstanding under the Loan Facility.\n \nThe unaudited cash balance at 30 June 2023 was £14.8 million (31 December 2022: £15.2 million) after drawing down £26 million from the Loan Facility, of which £10 million has been used to repay the loan notes issued on 28 February 2023.\n \nAs previously reported...