Allergy Therapeutics plc (LON:AGY), the fully integrated commercial biotechnology company specialising in allergen immunotherapy, has announced that it will resume production at the Freeman facility, part of its Worthing, UK manufacturing site, on 14th November.
The Group announced a short-term voluntary pause in production following an internal review of its current operating processes. This pause was part of the Group’s previously communicated ongoing programme to improve the robustness of its quality systems and build capacity across its manufacturing facilities but was accelerated when it became clear that the capacity was unable to cope with the commercial demand.
The pause in manufacturing occurred during a period of peak production prior to the start of the pollen season in the spring. As a consequence, whilst it is too early to determine the exact impact, it is currently estimated that revenue will be between approximately 13% and 18% lower than market expectations of circa £80m at current exchange rates for the year ended 30 June 2023. Business expenses for the same period are currently expected to reduce by around £3m.
Work is continuing to further minimise the impact through cost control and tight working capital management and delay in non-critical capital spend.
At the expected reduced levels of underlying profit, excluding research and development costs, the terms of the NatWest revolving credit facility would not allow use of the facility.
Manuel Llobet, CEO at Allergy Therapeutics, stated: “We took the difficult decision to temporarily pause production at the Freeman facility to continue delivering the highest standards of quality systems. We are now pleased to have a clear timeline to resume our UK manufacturing activities.”
