3rd Apr 2019 09:56
LONDON (Alliance News) - Drug maker Shield Therapeutics PLC said Wednesday its 2018 loss narrowed significantly as revenue surged on a licence payment boost amid a year of "transition" for the firm.
In 2018, Shield's pretax loss improved to GBP5.2 million from GBP21.0 million the year prior. This was after revenue leapt to GBP11.9 million from GBP637,000 the year before, primarily due to a GBP11.0 million upfront licence payment from a distributor.
Cash balances fell to GBP9.8 million from GBP13.3 million the year before.
"2018 was a year of transition and Shield is now well positioned to deliver further positive news through 2019," Shield Chief Executive Officer Carl Sterritt said. "I expect Norgine to continue to develop the sales performance of Feraccru in the UK and Germany, and we anticipate concluding further out-licence agreements to cover additional geographies."
Shield expects growth in sales of Feraccru in the UK and Germany by Norgine BV to continued, with royalties flowing through into revenue. The firm does not expect to add further European geographies in 2019, however, due to pricing negotiations.
Costs in 2019 are expected to be " substantially" lower than 2018 as selling expenses have been removed and general & administrative costs are expected to fall to levels seen in 2017.
"In the meantime," Sterritt continued, "we will continue to build upon these positive data, which have demonstrated Feraccru's non-inferiority to the leading IV iron therapy, its effectiveness in treating IDA in CKD patients, and the application of Feraccru to patients with iron deficiency."
Shares in Shield were 6.9% lower at 71.20 pence on Wednesday.
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