Shield Therapeutics (STX) , a commercial stage pharmaceutical company, released topline results for Q4 2023 and an unaudited trading update for the year ended December 31, 2023, including performance figures for its flagship Accrufer treatment for iron deficiency.
Shield reported total FY23 revenues and other income of US$17.5m, a 2.8x increase year-on-year. Accrufer revenue jumped to US$11.6m, 3.1x higher compared to FY22. Ex-US revenue was US$1.5m and other income revenue, including Viatris milestone payments, was US$4.4m. Shield joined forces with Viatris in May 2023 to handle rising demand for Accrufer, forming a combined sales team to target the 12,000+ highest US prescribers.
Total FY23 prescriptions were 77k, a 3.1x increase over FY22, with an average net selling price of US$145/prescription in H2 2023 - up 21% compared to H1 2023. US Q4 2023 revenue was US$4.3m. Cash was US$13.9m on December 31, 2023.
Shield also noted an adjustment to its total prescriptions figure for FY23 due to an error by a 3rd party data provider. Total prescriptions for FY23 was adjusted from 90.5k to the aforementioned 77k, resulting in an annual growth rate of 206%. Shield explained that the the adjustment does not affect previously reported financials, including revenues, net revenues per Accrufer prescription, and compliance with financial covenants on the group's debt instrument.
View from Vox
Good Q4 and FY23 results from Shield Therapeutics, showing a significant and growing opportunity for Accrufer in the US. The drug is the first and only FDA-approved oral iron to treat ID/IDA with a broad label. Total and Accrufer revenues as well as prescriptions tripled (taking into account the above adjustment), selling at a 21% higher price half-on-half. The strong performance in FY23 builds on a similarly impressive FY22 that saw prescriptions grow 10x and revenues triple. The partnership with Viatris, penned in May 2023, was a good strategic move that enabled STX to handle the high demand for Accrufer, rising over 200% in FY23.
With the revised prescription numbers, Shield will also revisit its previously issued guidance, with specifics expected at the time of the group's final results in April 2024. We expect a minor adjustment, given the adjustment to the prescription numbers was not significant at the scale of Accrufer's growth trajectory, and did not affect any financials. Shield is also implementing new measures to manage its cashflow, including a reduction in operating expenses and working capital enhancements, with the goal of turning cashflow positive by H2 2025.
Accrufer is shaping up to be a major win for Shield. Recent market research has reaffirmed the unmet need in the drug's target patient population as healthcare professionals and patients continue to seek a well-tolerated and effective oral iron. STX noted a positive improvement in its gross-to-net in FY23, which should accelerate further in FY24. With a comfortable cash position at period-end, the group is well-positioned for continued growth.
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