Forex headwinds could turn into tailwinds at Allergy Therapeutics

Jul 15, 2016, 11:25 AM

Allergy Therapeutics PLC (LON:AGY) recently announced 19% growth on a constant currency basis in the year just ended, against a flat market backdrop. To be delivering that sort of underlying growth in a becalmed market is a “good confirmation of the kind of things we’ve been hearing from Allergy on the commercial side for quite some time,” reckons Mike Mitchell, who covers the company at Allergy’s house broker Panmure Gordon. Increasing market share by an average two percentage points during the reporting period bodes well for the future, Mitchell added. For the year just gone, Mitchell notes, the company suffered forex headwinds thanks to the weakening euro, but “as the FX landscape moves forward” those headwinds could very well turn into tailwinds. Britain’s impending exit from the European Union is likely to cause ripples in the sector, but as a company with a very strong commercial base and a pipeline of products that are in the mid-to-late stages of development, the Brexit risks are low in Mitchell’s view.

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