Allergy Therapeutics steadies finances as it eyes Hong Kong listing

Allergy Therapeutics reported broadly steady FY results to June 30 with revenue of £55.0m (flat year‑on‑year; +~2% constant currency), operating loss narrowed to £28.2m from £35.3m and adjusted EBITDA remained negative at £9.0m, while R&D spend fell to £15.4m from £22.9m as a major trial phase completed. The group has been bolstering liquidity — drawing £20m from a five‑year secured Hayfin loan, extending its shareholder loan facility to £50m (£37.5m drawn at year‑end), subsequently drawing and repaying the remaining £12.5m to net £1m, and establishing a new unsecured, uncommitted £50m backstop — leaving cash of £12.8m. Operationally its lead Grass MATA MPL programme has full phase III data and is progressing through the German regulatory process, paediatric long‑term and peanut VLP PROTECT studies show encouraging safety/biomarker signals, and the company is exploring a dual primary listing in Hong Kong to broaden access to Asian capital, creating potential near‑term regulatory and clinical catalysts despite continued headline unprofitability.

Analysis

Allergy Therapeutics reported revenue of £55.0m for the year to 30 June, broadly unchanged from £55.2m previously and up just over 2% on a constant currency basis, while operating loss narrowed to £28.2m from £35.3m and adjusted EBITDA remained negative at £9.0m. R&D spend fell to £15.4m from £22.9m as the prior year included the busiest phase of the Grass MATA MPL trial, which has now produced full phase III data published earlier in the year.

The group strengthened liquidity by drawing £20m from a five‑year secured Hayfin loan, extending its shareholder loan facility to £50m (with £37.5m drawn at year‑end), then drawing and repaying the remaining £12.5m post‑period to net £1m; cash was £12.8m at year‑end and a new unsecured, uncommitted £50m facility is available if needed. These steps reduce near‑term financing risk but headline cash and a negative EBITDA leave the company reliant on further funding or commercial progress to close the cash profitability gap.

Clinically and strategically the company is positioning for catalysts: Grass MATA MPL is advancing through the German regulatory process, paediatric long‑term and VLP Peanut PROTECT studies show encouraging safety/biomarker signals, and management is exploring a dual primary Hong Kong listing to broaden Asian investor access. Near‑term upside depends on regulatory decisions and commercial uptake in Germany, while uncertainty around demand patterns during Germany’s transition to licensed products and ongoing unprofitability represent key downside risks.

Key Decisions for Investors

• Monitor the German regulatory milestones and early commercial uptake for Grass MATA MPL closely; consider adding to positions only after clear regulatory approval or initial sales traction is reported
• Treat the balance sheet as a conditional strength — the Hayfin loan and £50m facilities provide optionality but cash of £12.8m and negative EBITDA warrant position sizing limits and active monitoring of any future equity or debt raises
• View the Hong Kong dual‑listing process as a potential catalyst for broader investor demand or capital raise; follow listing announcements and deal terms before materially increasing exposure
• Remain cautious on the peanut programme and paediatric study: early safety/biomarker data are encouraging but not definitive, so allocate exposure consistent with binary clinical/regulatory risk