Tyneside pharmaceutical firm Shield Therapeutics says it expects to see an 84% jump in revenues on the back of a boost on prescriptions for its lead drug.
The Gateshead commercial stage drug business, which specialises in iron deficiency, issued an unaudited full year trading update for 2024, saying it saw a “significant step-up in revenue” during the year, while also successfully streamlining its cost base and strengthening its balance sheet.
Shield said the moves form part of the company’s ongoing strategy to become cash flow positive by the end of this year. The firm’s lead drug is sold as Accrufer in the US, and Ferracru in the Ƶ and Europe.
It expects to report total revenues of $32.2m, up from $17.5m, and reported 95% growth in Accrufer prescriptions to around 150,000 in 2024, generating $29.3m compared to 2023’s $11.6m - an increase of 153%.
During the final quarter of 2024, the firm strengthened its balance sheet by securing $10m in equity funding from its largest shareholder, AOP Health International Management AG, alongside just under £1m from a retail book offer from existing investors.
At the year end Shield held cash and cash equivalents of $6.5m – down on the previous year’s $13.9m – which received the additional equity boost of $10m on January 3.
Anders Lundstrom, who was officially appointed as the firm’s new chief executive officer last week following a period as interim CEO, said: “We have made significant efforts to streamline our cost base whilst driving growth in Accrufer revenues, prescriptions, and average net price, all in pursuit of achieving positive cash flow by the end of the calendar year.
“I am especially encouraged by the strong revenue momentum, as our team, in close collaboration with our partner Viatris, work diligently to expand our presence in the US market and position Accrufer as the therapy of choice.”
