27th Jan 2020 15:07
(Alliance News) - Shield Therapeutics PLC on Monday said annual revenue is likely to decline, though will align broadly with market expectations.
The commercial stage pharmaceutical firm said it expects to report revenue of GBP2.9 million for 2019, around a quarter of its GBP11.9 million 2018 revenue figure. The previous year's figure was boosted by a GBP11.0 million upfront licence payment from a distributor, with no such sizeable payment recorded in 2019.
Of the expected GBP2.9 million, GBP2.3 million was derived from milestone payments from commercial partners Norgine BV and EWO Pharma while GBP600,000 was sales-related revenue from Norgine.
As at December 31, Shield's cash stood at GBP4.1 million.
Having this month received USD11.4 million as an upfront payment from Beijing Aosaikang Pharmaceutical Co Ltd, with which is has entered an exclusive licence agreement, Shield said its cash runway now extends through into 2021.
The Beijing Aosaikang Pharmaceutical agreement concerns Shield's iron deficiency product, which contains ferric maltol and is marketed under brand names Feraccru and Accrufer, and covers China, Hong Kong, Macau, and Taiwan. Shield is eligible for another USD11.4 million one the drug is approved in China and ongoing royalties of 105 of 15% of net sales plus up to USD40 million of milestone payments based on sales targets.
Shield Chief Executive Carl Sterritt said: "The group has made material progress during 2019. Two key successes were the positive results of the AEGIS-H2H study, which demonstrated that Feraccru/Accrufer is a credible oral alternative to IV iron therapy; and the FDA's approval of Accrufer which opens up the US market for which we are diligently working towards appointing an appropriate commercial partner. In addition, having worked throughout 2019 to secure a Chinese partner, we were able to announce the agreement with [Beijing Aosaikang Pharmaceutica] just after the year end. As well as being delighted to have ASK Pharm as our partner, the USD11.4 million upfront has further bolstered our balance sheet as we seek to conclude US partnering discussions."
Shares in Shield were down 1.4% at 162.20 pence in London on Monday afternoon.
By Anna Farley; [email protected]
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