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Allergy Therapeutics Share Price Rallied 20.3% on Upbeat Grass Pollen Treatment Results

Simon Mugo trader
Updated 25 Oct 2021

Allergy Therapeutics plc (LON: AGY) share price rallied 20.3% after releasing positive results from its exploratory field trial to examine the effectiveness of its short-course grass pollen immunotherapy.

The biotech company noted that the field trial achieved its primary endpoint by demonstrating a “clear treatment effect” in the group of participants taking the Grass MATA MPL treatment compared to those on placebo treatment.

Allergy Therapeutics noted a statistically significant 29.1% improvement in patients on the six-week treatment regimen, with the number rising to 36.8% for those who took the 14-week treatment course.

The company noted that both dosing regimens were safe and well-tolerated by the 119 study participants.

Investors cheered today’s announcement, as evidenced by the rally in Allergy Therapeutics share price. The company’s shares traded at highs last seen in May 2008.

Still, many may be asking if AGY shares have further upside potential, and the answer is a resounding yes. Allergy Therapeutics once traded at a high of 145.9p back in February 2007.

Therefore, bullish long-term investors could be in for some gains in the future.

Manuel Llobet, the Allergy Therapeutics’ CEO, stated: “We are delighted to announce these results demonstrating a clear treatment effect from our novel, short-course immunotherapy targeting grass pollen allergies. Grass pollen is one of the most common causes of seasonal allergic rhinitis in the Western world. Debilitating symptoms can affect so many aspects of life, and new treatment options are needed.”

The biotech company also revealed that it would use today’s results to design the upcoming phase III clinical study of its grass pollen treatment scheduled to start in H1 2022.

The field trial and the upcoming trials are geared towards gaining regulatory approval to enter the US market, which has significant revenue potential for allergy treatments, especially since pollen allergy seasons are the most frequent.

*This is not investment advice.

Allergy Therapeutics share price.

IG chart of Allergy Therapeutics share price 25-10-2021
Source: IG

Allergy Therapeutics share price rallied 20.3% to trade at 40.30p, rising from Friday’s closing price of 33.50p.

Should you invest in Allergy Therapeutics shares?

Allergy Therapeutics shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Omega shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading