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Shield generates first sales in its home market

The specialist pharmaceutical company hopes to build momentum with its first commercialised product and looks for launches in more countries
September 21, 2016

For a small pharmaceutical company, Shield Therapeutics (STX) is in an enviable position. Its lead product, Feraccru, has EU approval and a regulated price in the UK and Germany that is higher than the company's bosses were expecting. The group has begun the commercial rollout of the drug in the UK, generating its first sales. Plus, Feraccru has recently been granted a patent which protects the active substance from competition until at least 2034.

IC TIP: Hold at 159p

The product is currently approved for patients who suffer bowel complications caused by iron deficiency or anaemia and a clinical trial is under way to allow it to be prescribed to patients with kidney complaints. That's a total patient population of around four million people in Europe and the US, which suggests peak annual sales could reach £500m. But chief executive Carl Sterritt has his sights set higher, saying that if one includes patients with other ailments who could benefit from using Feraccru, "we could target a population of more than 33m".

Current efforts are centred on the European rollout, the clinical trial into Feraccru for kidney problems and the US approval. Shield also has another product for treating overly high levels of phosphate in the blood, which is approaching the later stages of development.

Broker Canaccord expects full-year pre-tax losses of £15.4m and a loss per share of 14.7p (from £4.4m and 10.3p in 2015).

 

SHIELD THERAPEUTICS (STX)

ORD PRICE:159pMARKET VALUE:£172m
TOUCH:158-160p12-MONTH HIGH:190pLOW: 149p
DIVIDEND YIELD:nilPE RATIO:na
NET ASSET VALUE:50p*NET CASH:£28.4m

Half-year to 30 JunTurnover (£'000)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
2015nil-30.0-0.93nil
2016240-8.9-0.09nil
% change----

Ex-div: na

Payment: na

*Includes intangible assets of £27.5m, or 25p a share