The next 12-18 months will be key for Allergy Therapeutics, with the base European commercial business set to return to growth, whilst important pipeline readouts could propel the company closer to US market entry. In Europe, temporary headwinds impacted growth in Germany, Allergy Therapeutics’ largest market; these should abate, enabling a return to near double-digit revenue growth. Meanwhile, clinical trials for both VLP Peanut and Grass MATA MPL are set to initiate this year for data in summer and Q4 2023, respectively. These differentiated assets underpin future entry into the commercially important US market and could transform the company in the mid-term. Cash of £20.5m (FY21: £40.3m) has been boosted by £7m in equity and £10m in debt, enabling preparations to advance both of these pipeline programmes beyond planned trials. Our updated valuation is £327.7m, or 48.3p/share.
