Shield Therapeutics hails 2019 as year of 'material progress'
Carl Sterritt, Chief Executive Officer of Shield Therapeutics highlighted “two key successes” for the iron deficiency drug developer in 2019.
Firstly, the group’s lead drug, Accrufer®, was approved into the US market by the U.S. Food and Drug Administration in July, opening up a new commercial route for the group.
Positive results from the AEGIS-H2H study were also highlighted, demonstrating Feraccru® as a credible oral alternative to IV iron therapy, whilst European sales of Feraccru® reportedly grew 67% over 2018 to 2019, the statement added.
Revenues for the year were broadly in line, the company said, at £2.9 million down from £11.9 million in the comparative 2018 period when Shield received an £11 million upfront payment from Norgine for licence rights for Feraccru® in Europe, Australia and New Zealand.
Shares in Shield Therapeutics were trading 0.91% lower at 163p on Monday morning.
Shield’s cash position at 31 December 2019 was at £4.1 million down from £9.8 million in 2018 which House broker finnCap attributes to slightly lower than expected operating expenses of around £8.2m.
Following the receipt in January of the $11.4m upfront payment from ASK Pharm for Chinese rights to Feraccru®, Shield’s cash runway now extends into 2021, the statement explained.
Under the licence agreement, Shield will also receive up to $51.4m in future development and sales milestones and tiered double-digit royalties, as detailed in an earlier January statement.
“As well as being delighted to have ASK Pharm as our partner, the US$11.4 million upfront has further bolstered our balance sheet as we seek to conclude US partnering discussions,” said Sterritt.
finnCap said that Shield was in “a strong financial position” and that a solid cash runway will enable the company to conduct US licencing discussions “without the pressure of needing cash.”
In a research note immediately following the release of the deal, finnCap said minor forecasting changes had been made, reiterating the value of 350p a share on Shield.
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