Allergy Therapeutics, a biotechnology company, experienced a significant setback as its shares plummeted by 16% in early trade. The company revealed that its revenue for fiscal 2023 declined due to a pause in production, which ultimately resulted in an underlying operating loss for the year.
According to the company's Thursday report, revenue for the year ending on June 30 amounted to £61.0 million ($77.6 million), a decrease from the £72.8 million recorded during the same period last year.
The anticipated underlying operating loss, excluding research-and-development costs and exceptional items, is projected to reach £13.3 million. This stands in stark contrast to the £3.4 million profit achieved previously, reflecting both the decline in revenue and the rise in manufacturing and administrative expenses.
Furthermore, Allergy Therapeutics highlighted that the manufacturing capacity required for conducting clinical trials will result in reduced sales for fiscal 2024 and increased costs.
As a consequence of these revelations, shares were down 11%, or 0.30 pence, at 2.50 pence as of 0743 GMT. The stock had even reached a low of 2.35 pence earlier in the trading session.
We will continue to monitor the situation and provide updates as necessary.
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