Shield Therapeutics up 27% after impromptu trading update
Published: 04:26 21 Nov 2024 EST
Shares of Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) surged 27% in early trading after strong October sales of its iron deficiency drug ACCRUFeR, driven by an increase in net selling price to over $225 per prescription from $167 in the prior quarter.
This growth keeps the company on track to achieve its 2024 revenue target of $31.5 million, a key requirement under its debt agreement with SWK Funding.
The company also completed recruitment for a phase III confirmatory study of ACCRUFeR in China, conducted with partner Jiangsu Aosaikang Pharmaceutical, marking the final step before filing a new drug application in 2025.
Additionally, Shield is advancing a $10 million equity agreement with AOP Health and plans a shareholder meeting by year-end.
On the latter point, Stifel, the American investment bank, noted: "If approved, the $10m of new equity should provide some much-needed breathing room.
"This, along with the business looking to lower its cost base by [around] 10%, will help strengthen the balance sheet and support achieving cash flow breakeven by 2025 year-end."
The stock was up 0.73p at 3.41p.
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