Allergy Therapeutics (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.
