Shield Therapeutics (1JS) Trading Update Transcript

Summary of Shield Therapeutics PLC Q2 Trading Update Company Overview - Company: Shield Therapeutics PLC - Product: Acrefer (also known as Feracru outside the US) - Market: Iron deficiency treatment, with approximately 15 million individuals affected annually in the US [4][13] Core Points and Arguments - Market Opportunity: The iron deficiency market is significant, with a peak revenue potential for Acrefer estimated at $415 million annually [6] - Product Differentiation: Acrefer offers better tolerability compared to traditional oral ferrous salts, which cause gastrointestinal side effects in 40-60% of patients [5][7][9] - Partnerships: - Collaboration with Viatris in the US, sharing a 50/50 revenue split [10] - Partnerships in Europe (Norgine), Canada (CAIA), Korea, and China, with ongoing regulatory processes and market expansions [11][12][26] - Sales and Marketing Strategy: - Focus on digital marketing to increase awareness among healthcare professionals and patients [16][18] - Targeting various specialties beyond primary care, including nephrology and gastroenterology [15][22] - Increased sales force efficiency and territory optimization [23][57] Financial Performance - Q2 2025 Results: - Net revenues of $12.8 million, doubling from Q1 2025 [27] - 47,000 prescriptions filled, a 30% increase from the previous quarter [27] - Average net selling price per prescription rose to $231 from $187 [28] - Cash Flow: - Cash and cash equivalents at $10.8 million, with a goal to achieve cash flow positivity by the end of 2025 [28][29] - Revenue Recognition: Revenue is recognized upon sale to wholesalers, not directly linked to dispensed prescriptions [87] Growth and Future Outlook - Prescription Growth: Continued growth expected, with a focus on increasing the number of new prescribers [47][50] - Market Expansion: Plans to expand into pediatric populations and explore new geographical markets, including Japan and potentially India [74][96] - Long-term Goals: Aim to reach $450 million in annual sales through sustained growth and market penetration [103][105] Additional Insights - Patient Retention: Patients typically remain on Acrefer for 3-4 months, with potential for repeat prescriptions if needed [45][82] - Digital Marketing Impact: Digital marketing efforts have shown positive results in driving new prescribers, with significant impressions recorded [19][21] - Regulatory Milestones: Progress in pediatric label expansion with expected approvals in the first half of next year [101][102] Conclusion - Shield Therapeutics is positioned to capitalize on the growing iron deficiency market with a differentiated product, strategic partnerships, and a robust marketing approach. The company is on track for significant revenue growth and aims to achieve cash flow positivity by the end of 2025, while exploring further market opportunities.