Today's interims show revenue down and losses up due to slow market penetration.
Companies: Shield Therapeutics Plc
Shield Therapeutics (LON: STX) has released its interims today that show "slower than anticipated market penetration" of the Group's Feraccru product.
Revenue has fallen to £142k in H1 17, a fall of 40% compared to the same period last year. Net losses also grew to £9.6m from £8.9m in H1 16. Adjusted net losses were £8.4m.
The Group also underwent a transformation in Management with a new CFO and General Managers now reporting directly to the CEO, resulting in the removal of some senior positions.
The Group has, however, made some headway towards commercialisation including several new patent grants and a preapproval notification for Feraccru received from the Swiss regulatory authority in June 2017. First revenues from their recently signed commercial partner are expected in early 2018.
Group CEO Carl Sterritt commented on the results, saying:
"Shield has continued to make progress in bringing the substantial benefits of Feraccru to IDA patients with IBD in Germany and the UK. Frustratingly, whilst prescriber, clinical investigator and patient feedback on the positive impact of Feraccru has continued to be reassuringly positive, recent market penetration has been slower than originally anticipated due to certain short term operational issues. We believe the issues are being addressed by more focus on in-country operations."
The Group's Chief Executive went on to say that whilst demand for Feraccru has continued to Grow in Germany and the UK...
"This has however been at a slightly slower rate than required to meet existing 2017 guidance for in market demand and partner revenues."
He also reiterated mid-term sales guidance of £20-25m in 2020.
Liberum released a note regarding the Group's Interims, saying the downgrade was "disappointing" and that they make no change to their sales forecasts.
The Group currently has a market cap of £183m with a lot of future growth baked in. The Group's first revenue of £0.3m was reported in 2016, rising to £2.8m in 2018 according to consensus forecasts. Net losses are also forecast to continue to grow into FY18.
