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

Allergy Therapeutics H1 trading update: revenue grows, Germany rebounds, and Grassmuno lands

Allergy Therapeutics has delivered a tidy first half: revenue up, debt down, and a pivotal German approval that could reshape its product mix. The company expects H1 revenue of £36.3 million versus £34.0 million in the prior period, a 7% increase on a reported basis (3% on a constant currency basis). That growth came despite a deliberate phase-out of unregistered German products under the TAV programme.

The real headline is regulatory. Grassmuno (also called Grass MATA MPL) is the first new subcutaneous immunotherapy for grass pollen launched in Germany in roughly 20 years, with marketing authorisation in December 2025 and commercial sales starting January 2026. Management expects full-year sales to exceed the year to 30 June 2025, underpinned by Grassmuno momentum in H2.

Key numbers investors should know

Metric	Figure	Notes
H1 revenue (to 31 Dec 2025)	£36.3 million	Up 7% reported vs £34.0 million prior period; 3% constant currency
Cash balance (31 Dec 2025)	£10.1 million	Down from £12.8 million at 30 June 2025
Proceeds from warrant exercises	£55 million	Used to repay all outstanding shareholder loans
New unsecured loan facility	£50 million	Undrawn as at 31 Dec 2025
Additional uncommitted facility (Hayfin)	£20 million	Together with the above, total uncommitted funding access is £70 million
Germany Grassmuno approval	December 2025	Commercialisation commenced January 2026
FY26 outlook	Positive	Full-year sales expected to exceed FY25

What’s driving H1 performance and why it matters

Two things can be true at once: the TAV phase-out is a headwind, yet Germany is recovering. Management says growth reflects strong momentum in the German registered portfolio, even as unregistered TAV products continue to be phased out. That is exactly what investors should want to see – revenue quality improving as the mix shifts into fully registered, defensible assets.

Constant currency growth of 3% tells us foreign exchange did some lifting. Still, the top-line advance alongside a structural product transition is a constructive signal, especially with supply chain reliability restored after prior disruptions.

Grassmuno: a rare new entrant in German SCIT and a strategic pivot

Grassmuno is a subcutaneous immunotherapy (SCIT) for grass pollen allergy, now authorised in Germany. SCIT is delivered by injection and aims to modify the course of disease rather than just treat symptoms. Management calls Germany its largest market, and notes this is the first new SCIT launch there in about two decades – that’s real differentiation.

Two points stand out:

• 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.