Shield Therapeutics Reports Steady Growth and Financial Plans in Q3
LONDON – Commercial-stage drug company Shield Therapeutics (LON:STXS) plc (LSE: STX) reported a positive third-quarter performance with a net revenue of $7.2 million from its iron deficiency drug ACCRUFeR®. This figure represents a 20% increase in prescriptions compared to the second quarter of 2024 and an 86% rise year-over-year.
The company also increased its working capital financing facility with Sallyport Commercial Finance from $10 million to $15 million and announced plans to reduce operating costs by 10%. These measures are part of Shield's strategy to achieve positive cash flow by the end of 2025.
In addition to financial restructuring, Shield reached a non-binding agreement with AOP Health for a potential $10 million equity investment. The arrangement, which contemplates AOP Health exceeding a 50% stake in Shield, is subject to conditions such as waivers from the Takeover Panel and shareholder approval.
During the quarter, the total number of ACCRUFeR® prescriptions reached approximately 43,500, contributing to total group revenues of $8.0 million, including royalties and milestone payments from global partners. Shield's Board of Directors estimates that these figures keep the company on track to meet its annual revenue target of $31.5 million as specified in its debt agreement with SWK Funding LLC.
Despite a slight decrease in cash and cash equivalents from $8.1 million on June 30 to $7.7 million on September 30, the company's balance sheet remains strong. The average net sales price per prescription for ACCRUFeR® was $167, impacted by seasonal purchasing patterns, although this price was $192 when July is excluded.
Shield's Interim Executive Chairman Anders Lundstrom expressed confidence in the company’s trajectory, citing increased demand for ACCRUFeR® in the U.S. and other markets, as well as a strengthened balance sheet and cost control measures.
This update is based on a press release, and further announcements are expected regarding developments related to the potential equity investment with AOP Health.