Shield Therapeutics grows Accrufer prescriptions by 174% in Q1, expects to be profitable by H2 2025
() , a commercial stage pharmaceutical company, issued a business update for Q1 2024, including key financials for the year ended December 31, 2023.
Shield reported revenues of US$4.0m in Q1, resulting from 28,800 prescriptions of Accrufer, its flagship treatment for iron deficiency. Total Q1 prescriptions increased 1% over Q4, and 174% year-on-year. The average net selling price per prescription was US$140.
Strong quarter-on-quarter growth in New York and California of c. 29% was offset by a 28% decline in Texas due to a transition and lack of a Texas State Medicaid Pharmacy Benefit Manager (PBM) during the quarter, which resulted in significant inconsistencies in prior authorisation (PA) approvals for Accrufer Medicaid prescriptions.
improved its balance sheet through a new US$10m accounts receivable financing with Sallyport Commercial Finance, and amended its US$20m debt facility agreement with SWK Funding with more favourable terms. Cash and cash eq was US$10.4m on March 31, 2024.
Shield expects to turn cashflow positive in H2 2025 with its current resources.
Greg Madison, CEO, commenting: "We observed several encouraging growth signals during Q1 2024 including rising prescriptions in key states such as California and New York, after receiving access to Medicaid in those populous states. Additionally, our stated initiatives to improve the average net selling price by increasing PA submission rates and more favourable Medicaid pricing following renegotiation of payer contracts, are progressing very well. While the situation in Texas dampened the impact of these positives, we are engaged with the new PBM with the aim of finding a resolution as quickly as possible."
View from Vox
Shield continues to deliver strong numbers as adoption of its flagship asset for iron deficiency continues to grow in the US. Quarter-on-quarter growth in New York and California was significant at c. 29% following Medicare approval and positive changes in PA submission rates. In Texas, the new PBM began on April 1, 2024, and issues should be resolved in the near term, resulting in a material improvement in nationwide prescriptions.
Year-on-year growth was even more impressive, with a 174% rise in Accrufer prescriptions over Q1 2023, and a 310% increase over FY22. Total 2023 revenue increased 2.8x to US$17.5m over FY22, Accrufer revenue rose by 3.1x to US$11.6, and ex-US revenue was US$1.5m from product sales in Europe. Other income, including Viatris milestone payments, was US$4.4m. Shield joined forces with Viatris in May 2023 to handle rising demand for Accrufer, forming a combined sales team to target the 12,000+ highest US prescribers.
Operating loss narrowed significantly in FY23 to US$31.1m from US$49.8m in FY22, and should continue shrinking until cashflow positive, currently projected for H2 2025.
Shield's lead asset Accrufer targets significant unmet demand for a safe and well-tolerated oral therapy for iron deficiency, including anaemia. The drug is currently the only FDA-approved oral iron to treat ID/IDA with a broad label. As Accrufer continues to gain momentum in FY24, alongside expected improvements in average net selling price, and facilitated by a comfortable cash position and a successful collaboration with Viatris, we expect to become profitable in mid-to-late 2025.
Shield's fully audited results for FY23 are expected before May 10, 2024.
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