LONDON - Shield Therapeutics (LON:STXS) plc (LSE: STX), a commercial stage pharmaceutical company, announced a positive third-quarter performance with net revenues of $7.2 million from its iron deficiency drug ACCRUFeR®, marking a 20% increase in prescriptions over the second quarter of 2024 and an 86% rise compared to the same period last year.
The company has also expanded its working capital financing facility with Sallyport Commercial Finance from $10 million to $15 million and plans a 10% reduction in operating costs. These measures are part of Shield's strategy to become cash flow positive by the end of 2025.
In addition to the financial restructuring, Shield has entered into a non-binding agreement with AOP Health for a potential $10 million equity investment. The deal, which would see AOP Health's stake in Shield surpass 50%, is subject to conditions including a waiver from the Takeover Panel and shareholder approval.
The total number of ACCRUFeR® prescriptions reached approximately 43,500 for the quarter, contributing to total group revenues of $8.0 million, which includes royalties and milestones from global partners. Shield's Board estimates that these figures keep the company on track to meet the annual revenue target of $31.5 million as stipulated in their debt facility agreement with SWK Funding LLC.
Despite a slight decrease in cash and cash equivalents from $8.1 million as of June 30 to $7.7 million by September 30, the company's balance sheet remains solid. The average net selling price per prescription for ACCRUFeR® was $167, impacted by seasonal buying patterns, but excluding July, the price was $192.
Anders Lundstrom, Interim Chief Executive Officer of Shield, expressed confidence in the company's trajectory, citing increased demand for ACCRUFeR® in the US and other markets, as well as the strengthened balance sheet and cost control measures.
This update is based on a press release statement and further announcements are expected as developments occur regarding the potential equity investment with AOP Health.
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