Allergy Therapeutics Reports Strong H1 Growth and Launches First New Immunotherapy in 20 Years in Germany

• Timing is favourable. The German allergen ordinance TAV process is expected to conclude later this year, removing competing products that failed to meet regulatory requirements. That could prune the competitive field just as Grassmuno ramps.
• Label expansion potential matters. A paediatric trial is “on track” and, if successful, could extend the label to children. That would expand the addressable market and deepen the product’s commercial runway.

The company also says the clinical trial methodology refined for Grassmuno can be used across other allergens – birch, ragweed, and other major pollen segments. If replicated, that creates a template for a broader registered portfolio in Europe’s largest immunotherapy market.

Balance sheet: debt down, liquidity options up

Cash at 31 December 2025 was £10.1 million, down from £12.8 million at 30 June 2025. The key event here is the £55 million of proceeds from shareholder warrant exercises, which the company used to repay all outstanding shareholder loans. That significantly reduces financial indebtedness and tidies up the balance sheet.

To support working capital and the commercial roll-out, Allergy now has access to £70 million of uncommitted funding – a new £50 million unsecured facility (undrawn at period end) plus a previously announced £20 million uncommitted Hayfin facility. Uncommitted facilities give flexibility but are not guaranteed until drawn, so execution discipline remains important. The company is also exploring a potential dual primary listing on the Hong Kong Stock Exchange – no terms or timing disclosed.

Outlook and catalysts into H2 FY26

Management expects FY26 sales to exceed FY25, with Grassmuno commercialisation the obvious swing factor. With launch now underway, watch for:

• German uptake and reordering patterns for Grassmuno through the pollen season.
• Evidence of revenue mix shifting further towards registered products as TAV winds down.
• Updates in March 2026 at the Interim Results – especially on margins, operating cash flow and any initial Grassmuno contribution (none disclosed today).
• Progress on the paediatric study and timing for broader EU submissions.
• Further readouts from the VLP Peanut programme, where interim analyses remain “encouraging”.

Risks and watchouts

• Execution risk on launch: moving from approval to meaningful market share is never automatic, even with a favourable regulatory backdrop.
• FX sensitivity: only 3% constant currency growth suggests some H1 uplift from exchange rates that could reverse.
• Cash burn visibility: cash is modest at £10.1 million, though facilities provide headroom; the RNS does not disclose profitability or free cash flow.
• Germany concentration: benefits of TAV conclusion should help, but reliance on one major market cuts both ways.

My take: a cleaner story with real optionality

This reads like a turning point. Revenue is growing despite the TAV phase-out, the balance sheet is simplified after repaying shareholder loans, and the company now has a newly approved, differentiated asset in its largest market. If Grassmuno scales as intended – and if the paediatric label follows – Allergy Therapeutics could exit FY26 with a stronger, more defensible product mix and a clearer path to expansion into other allergens.

Temper that with launch and cash execution risks and the fact that constant currency growth was modest. But on balance, today’s update is net positive: H1 growth, a strategic approval in Germany, and financial flexibility to prosecute the plan. March’s Interim Results will be the next checkpoint for hard numbers on margins and cash – and for early signals on how quickly Grassmuno is resonating with prescribers.

Quick glossary

• Subcutaneous immunotherapy (SCIT): Allergy treatment given by injection to train the immune system to tolerate allergens over time.
• TAV programme: The German allergen ordinance transition framework for unregistered products, now concluding and leading to the removal of products that did not meet regulatory requirements.
• Constant currency: Adjusts for exchange rate movements to show underlying growth.
• Uncommitted facility: A lending line available in principle but not contractually committed until drawdown conditions are met.