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Shares in Shield Therapeutics PLC (LSE:STX) saw a 7% rise in early trading following the approval of its drug, Accrufer (ferric maltol), by Health Canada for the treatment of iron deficiency anaemia (IDA) in adults. This significant regulatory approval marks a key milestone for Shield and opens the door for its partner, Kye Pharmaceuticals, to launch Accrufer in the Canadian market.
Under the terms of their agreement, Shield will receive an initial milestone payment of £250,000. Beyond this, the company is set to benefit from additional revenue-based payments and double-digit royalties on net sales. Shield will oversee the manufacturing and supply of Accrufer for the Canadian market, ensuring the drug’s availability to patients across the country.
The approval by Health Canada is a notable achievement for Shield, as it extends the reach of Accrufer beyond its current markets, potentially broadening its revenue base. This development also highlights the growing recognition of Accrufer as an effective treatment for IDA, a condition that affects a significant number of adults globally.
In response to this positive news, a note emphasized that Shield Therapeutics is currently valued at just half of its predicted 2025 sales of £70 million, despite having an approved and actively marketed drug. The note pointed out that the current pricing and growth in prescriptions are encouraging signs for the company's future prospects. This assessment suggests that the market may be undervaluing Shield’s potential, especially given the recent regulatory success and the ongoing commercialization of Accrufer.
The rise in Shield’s stock price by 0.29p to 4.1p in early trading reflects investor optimism following the Health Canada approval. This uptick indicates confidence in Shield’s ability to capitalize on its recent achievements and suggests a positive market response to the company’s ongoing efforts to expand its footprint in the global pharmaceutical market.
Overall, the approval of Accrufer in Canada marks an important step forward for Shield Therapeutics, potentially paving the way for further growth and success in the coming years.