US sales are expected to continue ramping up for Gateshead drug firm Shield Therapeutics, which has grown revenue and narrowed losses.
The specialist provider of iron deficiency tablets has reaffirmed its guidance that it will reach cashflow break even by the end of next year, amid an update on its major push to capture stateside market share. Shield told investors on the London Stock Exchange that unaudited revenue in the six months to the end of June was £3.5m ($4.3m), up from from £2.1m ($2.6m) in the same period last year, while unaudited operating losses decreased from £12.4m ($15m) to £9.5 ($11.5m).
The firm, which has back office operations on Tyneside, said it continued to generate momentum in the US, where it is hoping its Accrufer drug will win favour with prescribing doctors and those suffering from iron deficiency. Prescriptions totalled 26,200 in the first half of the year, a 59% increased compared to the second half of 2022.
Read more: North East Business Awards 2023: winners speak of pride after night of success
Read more: Nissan ignores Sunak electric vehicle delay and commits to 2030 deadline
Shield hailed the progress and said it expects those numbers to surpass 28,400 in the third quarter, which would represent an 80% increase on second quarter prescriptions. The growth is on the back of the firm's partnership with healthcare company Viatris. Both have hired and trained 50 dedicated salespeople to tackle the market.
Alongside the results, Shield also announced a $20m debt financing facility from specialist life science funders SWK Financing, and a share placing fund raise targeting £5m. Funds from both are intended to speed up the firm's US plan.
Shield chief executive officer Greg Madison said: "I am pleased to report that Shield has had an excellent first half of 2023. We successfully initiated the Accrufer commercial partnership with Viatris, completed the build out of the combined team and effectively implemented our new commercial growth strategy and marketing campaign.
Most Read
"Our strong performance, following completion of the commercial expansion in May, is evidenced by the momentum achieved across each of our KPIs and consistent, significant prescription growth. These results reflect the unwavering dedication and deep experience of our outstanding team and our commitment to make Accrufer the oral iron of choice.
"We believe our standout H1 2023 results, KPI achievements and expectations for continued Q3 2023 growth put us on track to reach total 2023 Accrufer prescriptions of 100,000 to 130,000. This is a major corporate milestone for Shield and forms the foundation for future growth.
"Looking ahead, we have defined additional initiatives to improve our gross-to-net, continue the growth in Accrufer prescriptions and market adoption and expand market access. Our commercial results provide validation of our strategic plan and give us access to important growth capital. The new $20m term loan announced today and an equity financing of up to $7.4m will put us on a steady path to reach our guidance of cash flow breakeven, expected by year-end 2024."