Allergy Therapeutics earnings set to top expectations

Biotechnology group Allergy Therapeutics told investors on Thursday that 2019 full-year earnings looked set to come in ahead of market expectations.

Allergy's net sales were said to likely be in line with market expectations, showing good growth over the past year on a constant currency basis across most of Europe but especially in Spain, Netherlands and Switzerland.

But as a result of lower than anticipated overheads through cost control and research and development costs of less than £14m, the AIM-listed group now expects earnings to top expectations.

In terms of products, Allergy's Venomil, Pollinex and Pollinex Quattro all performed well, while Acarovac Plus continued to be "a top performing product" in Spain.

Chief executive Manuel Llobet said: "Allergy Therapeutics has continued to perform strongly this year, combining good sales performance with strong cost control, resulting in earnings ahead of market expectations for the full year."

Elsewhere, Allergy revealed it had received a $7.6m settlement from Inflamax Research in relation to legal proceedings regarding its inconclusive Phase II Grass MATA MPL trial which took place in the USA in 2015-16.

"With the announcement today of a successful litigation result in relation to the Grass MATA MPL Phase II trial in challenge chambers, our cash position has been further boosted," added Llobet.

As of 1010 BST, Allergy shares had climbed 6.42% to 14.10p.