Shield Therapeutics reports strong quarter for Accrufer
Shield Therapeutics
3.47p
16:55 29/10/24
Shield Therapeutics reported a strong third-quarter performance for its iron deficiency treatment Accrufer in the US on Tuesday, achieving net revenue of $7.2m.
FTSE AIM All-Share
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16:49 29/10/24
The AIM-traded firm said that was supported by a 20% increase in prescriptions from the second quarter, and an 86% rise compared to the third quarter of 2023, totaling around 43,500 prescriptions.
It maintained an average net selling price of $167 per prescription, excluding the impact of a wholesaler buying surge ahead of the 4 July holiday.
Total group revenue, including royalties and milestones, reached $8m for the third quarter, with year-to-date revenue totaling $20m.
Shield said it expected to meet its full-year revenue target of $31.5m under its debt agreement with SWK Funding.
To reinforce its financial stability, Shield said it had expanded its accounts receivable financing facility with Sallyport Commercial Finance from $10m to $15m and introduced a 10% reduction in operating costs.
Additionally, Shield had entered non-binding terms with its largest shareholder, AOP Health, for a potential $10m equity injection to support growth, aiming for positive cash flow by the end of 2025.
The proposed investment by AOP Health, if approved by Shield’s shareholders and relevant authorities, would grant AOP Health over 50% voting control in Shield, conditional on a waiver from the Takeover Panel and shareholder approval.
Shield said it could also explore a broader equity offering for existing shareholders, of which further details would be disclosed in the fourth quarter.
“It has been another successful quarter for Shield as we work towards becoming cash flow positive by the end of the 2025 financial year,” said chief executive officer Anders Lundstrom.
“We continue to see increased demand for Accrufer in the US and across all our territories.
“Net sales, total prescriptions and the net selling price of Accrufer are all showing positive trends, and with a strengthened balance sheet and tight control of our cost base we will continue to build momentum behind Accrufer and make the steps required to transition to cash flow positive by the end of 2025.”
At 1422 GMT, shares in Shield Therapeutics were down 10.58% at 3.4p.
Reporting by Josh White for Sharecast.com.