For Shield Therapeutics(STX), a UK-based pharmaceutical company, 2022 has proved a stellar year. In a trading update, the company reported a revenue increase to £8.5 million, up from £1.5 million in 2021, along with a US commercial update following the signing of an exclusive, multi-year agreement with Viatris, a global healthcare company, in December 2022.
The sales increase was predominantly driven by sales of Accrufer® in the US. The product, a novel oral iron therapy to treat iron deficiency with or without anemia, is the first of its kind to be approved by the FDA .
Shield Therapeutics also made progress towards commercialisation in Canada, where upfront payments of £4.2 million from Viatris and £0.2 million from KYE Pharma were made upon signing the license agreement. In Europe, the company received royalty revenue of £1.3 million from product sales, up from £0.9 million in 2021.
The company received total financing of c.£30 million (including gross funds received post period) across the year, with cash resources sufficient to support operations through to cash flow break-even expected by the end of 2024.
In December 2022, Shield Therapeutics announced its collaboration with Viatris to co-commercialise Accrufer®, which aims to scale the product into a $2 billion market. The collaboration will result in a 100-person sales team that will promote Accrufer® to over 12,000 healthcare professionals. Shield Therapeutics has received a US$5 million one-time payment and is eligible to receive up to US$30 million upon hitting sales milestones.
Greg Madison, CEO of Shield Therapeutics, stated: "We believe Accrufer® has the potential to be the oral iron treatment of choice for patients with ID/IDA. In 2022, we set out to substantially increase product adoption, sales growth, physician awareness and generate positive clinical experience and expand payor coverage. 2022 has been a landmark year for Accrufer®, marked by consistent improvements across all of these key performance indicators, led by a substantial increase in prescriptions and product revenues. I am proud and grateful for the excellent work by our team and our partners."
View from Vox
Globally, iron deficiency anemia affects around 1.2 billion individuals worldwide, and iron deficiency in the absence of anemia is even more frequent. In the US alone, about 20 million people suffer from anemia including iron deficiency (ID) and iron deficiency with anemia (IDA).
Being the first of its kind to be FDA approved, Shield Therapeutics’ Accrufer® has the potential to meet an important unmet medical need for the treatment of ID and IDA in the US. Alongside this, Accrufer® sets itself apart from industry competitors by not causing strong side effects such as stomach cramps and nausea, which can often lead to patients not completing treatment plans. Shield Therapeutics’ product, therefore, ensures better patient outcomes, helping to successfully treat ID and IDA in the US and beyond.
Shield's shares jumped 13% on the update, and the company remains one to watch as it continues to successfully co-commercialise Accrufer® in the US, setting themselves up for strong growth in 2023. Follow Shield Therapeutics on Vox to receive more of the company’s latest updates .