Grassmuno Rollout to Place Allergy Therapeutics on Path to Sustainable Profitability

The successful commercial deployment of a newly approved grass pollen immunotherapy is expected to establish a foundation for long-term profitability at Allergy Therapeutics PLC, according to broker analysis from Cavendish.

The assessment follows the release of half-year results for the six months ended December 2025, which demonstrated revenues of £36.3 million, representing a 7% increase on the corresponding period. This performance is particularly noteworthy given the ongoing regulatory transition away from unregistered allergy products in Germany, the company’s principal market.

Grassmuno, the firm’s grass pollen allergen immunotherapy product, operates by gradually desensitising patients to allergens rather than merely suppressing symptoms. The treatment secured German regulatory approval and entered commercial distribution in January 2026.

Management has previously indicated that peak sales potential for the product could reach €100 million in Germany alone, within a global market anticipated to expand to approximately $1 billion by 2030. This outlook underpins the broker’s confidence in the company’s trajectory towards self-sustaining profitability.

The commercial launch arrived slightly later than originally anticipated, falling outside the optimal September to December immunisation window. Consequently, Cavendish has revised its full-year revenue projection downward to £63 million from £68 million, though this still implies year-on-year growth of 14%.

Balance sheet strength was reinforced in February when the company expanded its debt facility with Hayfin Healthcare to £60 million. Gross cash holdings stood at £42.4 million at the end of that month.

Development progress on VLP Peanut, an experimental vaccine-based therapy for peanut allergy designed to train the immune system, provides additional strategic optionality. Early stage I/IIa data has been characterised as encouraging by the broker.

Cavendish maintains a buy rating on Allergy Therapeutics with a target price of 13 pence. The shares currently trade at 10.3 pence. Allergy Therapeutics is a corporate client of Cavendish.