24th Jan 2019 14:16
LONDON (Alliance News) - Shield Therapeutics PLC on Thursday said it expects its revenue to surge in 2018 on the back of licence payments for its Feraccru capsules.
The pharmaceutical company has guided for revenue in 2018 of GBP11.9 million, well above the GBP637,000 reported in 2017.
In September last year, Shield entered into an exclusive licence agreement with Norgine BV for the commercialisation of Feraccru in Europe, Australia and New Zealand. Feraccru is a medicine used to treat iron deficiency in adults.
The financial terms included an GBP11 million upfront licence payment which was recognised in 2018, up to an additional EUR54.5 million in development and sales milestones.
With a "positive" working relationship, the transition process progressed smoothly through the last three months of 2018 and Norgine began to promote Feraccru in both the UK and Germany, Shield said.
In addition, the US Food & Drug Administration has accepted the filing of a new drug application for Feraccru, with completion expected by July 27.
However, Shield noted with the prolonged shutdown of federal government operations in the US, there may be some risk of delay to this review.
Looking ahead, the company said Feraccru will be launched by Norgine in the other major European markets when pricing and reimbursement negotiations are concluded, with these launches not expected before 2020.
Discussions are also underway with third parties for the licensing of Feraccru commercial rights in certain countries outside Europe.
"Shield has entered 2019 in good shape. I have been encouraged by the sales performance of Feraccru in the UK and Germany, where upward sales momentum has been maintained through the last twelve months despite the lack of active sales promotion since February 2018," said Chief Executive Carl Sterritt.
Shield shares were trading 5.0% higher on Thursday at 39.28 pence each.
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