Korean market is latest play for Shield Therapeutics' iron deficiency drug
Pharmaceuticals firm Shield Therapeutics says it has taken a step closer to breaking into the Korean market. The iron deficiency drug specialist, which has operations on Tyneside, says its partner, Korea Pharma Co Ltd, has filed a new drug application (NDA) to the Korean Ministry of Food and Drug Safety (MFDS). Authorities in the country will review Shield's Accrufer tablets - which are design to help patients with iron deficiency anaemia. Shield, which will manufacturer the tablets, hopes approval will come in 2025, after which time the first sales in Korea could lead to the firm receiving a development milestone payment of about £1.48m ($1.9m). Future commercial sales milestone payments could also come following specific new sales targets and Shield will also receive double-digit royalties on net sales of Accrufer. Read more: Pragmatic Semiconductor points to progress as losses widen amid significant investment Read more: Tyneside chosen by British-Korean joint venture to build £923m cable factory The move is the latest amid efforts by Shield to capture a portion of the iron deficiency treatment market globally. Shield is particularly focussed on the US where it has partnered with healthcare firm Viatris to target clinicians as potential prescribers of Accrufer. Both have hired and trained 50 dedicated salespeople to tackle the market and late last month said it had seen strong quarterly growth of around 29% in the largest US states of California and New York, but had suffered setbacks in Texas. At the same time it told shareholders prescriptions reached around 77,000 in 2023 – a 310% increase over the 2022 financial year – and that its operating loss had narrowed from $49.8m to $31.1m Greg Madison, CEO of Shield, said: "Iron deficiency anaemia is a global issue. Shield is committed to working with valued partners, such as Korea Pharma, to enable global access of Accrufer and advance the care of patients with iron deficiency anaemia around the world. Completion of the MFDS filing by Korea Pharma marks the first filing for Accrufer in Southeast Asia. We are thrilled to work with our partner to reach this important milestone. We look forward to supporting Korea Pharma as they continue the pathway to making Accrufer available to patients in Korea."
Pharma firm Shield Therapeutics targets cashflow positive date amid US progress
Tyneside pharma firm Shield Therapeutics expects to turn “cashflow positive” in the second half of its 2025 financial year as it seeks to grow sales of its lead drug in the US. The company’s main product, which treats iron deficiency anaemia, was first launched in Europe under the Ferracru brand in 2019 but is now available in the US and other countries as Accrufer. The Gateshead-based company had been due to publish its full year results, but delayed them, saying it needs additional time to translate its figures from US dollars into UK sterling, adding that fully audited results for FY23 will be published before May 10. However, it gave shareholders key metrics for the year, alongside a business update for the first quarter of the new financial year. It said revenues and other income rose 2.8 times to $17.5m, and Accrufer revenue grew 3.1 times to $11.6m. Other income includes a Viatris milestone payment of $4.4m. Meanwhile, it said 2023 saw prescriptions reach around 77,000 – a 310% increase over the 2022 financial year – and that its operating loss has narrowed from $49.8m to $31.1m During the first quarter of 2024, Shield reported net revenues of $4m from circa 28,800 prescriptions of Accrufer. It said it also strengthened its balance sheet through financing with Sallyport Commercial Finance, and amended its existing $20m debt facility agreement with SWK Funding LLC with more favourable terms. In the first quarter it said prescriptions reached 28,800, a 1% rise over the last quarter of 2023 and a 174% increase over the same period last yeatr. Total US Accrufer revenue was $4m in the period with an average net selling Price of $140 per prescription. In February it revealed that it had previously overstated total prescriptions for 2023, blaming projection methodology used by a third party data provider. Shield said it has since “worked very closely with its third-party data provider to rectify the prescription reporting issue and has implemented an enhanced multi-source system”. Greg Madison, CEO of Shield Therapeutics, said: “We observed several encouraging growth signals during Q1 2024 including rising prescriptions in key states such as California and New York, after receiving access to Medicaid in those populous states. Additionally, our stated initiatives to improve the average net selling price by increasing PA submission rates and more favourable Medicaid pricing following renegotiation of payer contracts, are progressing very well. “While the situation in Texas dampened the impact of these positives, we are engaged with the new PBM with the aim of finding a resolution as quickly as possible. “We continue to believe that Accrufer addresses an important unmet market need for a safe and well tolerated oral iron therapy. We fully expect to continue growth in prescriptions in Q2 and beyond and will continue to focus on increasing our average net selling price with targeted investments such as the new field access team, deployed in early April, to assist HCP offices with PA support and education. "The belief, passion and motivation to succeed by both Shield and Viatris was readily evident at our recent National Sales Meeting. We remain focused on our mission to make Accrufer the oral iron of choice for patients with iron deficiency, with or without anaemia.”
North Shields' Chirton Engineering part of Carr's Group being considered for sale
The owner of North Shields-based Chirton Engineering is mulling a sale of the business as part of a slimming down exercise. Carr's Group plc, the Carlisle-based manufacturing group which acquired Chirton ten years ago, told investors that it is in the early stages of valuing its engineering division which includes the Tyneside business and five other brands, including businesses in Germany and the US. Carr's said the running of both its agricultural and engineering divisions is inefficient with a lack of synergies across the various businesses and management stretched across both. It has identified the £50m revenue engineering arm in a review intended to "maximise shareholder value". The announcement came as bosses pointed to the division's strong first half 2024 performance in which revenues increased 26.1% to £28.5m, amid a £57.8m order book. The potential move follows a change of leadership at Carr's, which bought Chirton for £2.75m in 2014. The group's former chief financial officer, David White, stepped up to become chief executive officer in November last year which was followed by news of cost reduction action across the business, including restructuring costs of £600,000 in 2023. Full year results for Carr's in 2023 showed 15.3% revenue growth to £143.2m while statutory operating profit fell 76% to £2m. Bosses described last year as challenging with that assessment repeated in the fresh half year results to the end of February in which revenue increased 2% to £81.4m and statutory operating profit fell 32.1% to £3.5m. Carr's board said it had looked at the growth potential of the agricultural and engineering divisions, suggesting the potential to create value in its agricultural business is a longer term project, via transformation plans to be carried out by Mr White alongside Gavin Manson as chief financial officer and Martin Rowland as executive director of transformation. Meanwhile, there was said to be a more immediate opportunity in the engineering arm. David White said: "Having reviewed the position of the group and its market valuation the board has concluded that the value of each of our divisions individually, when added together, significantly outweighs our market capitalisation. The growing profitability and future prospects of our Engineering Division make this the optimal time to explore options to realise value for that division. "The significant opportunities to improve our market position in our Agriculture Division point to short term focus on optimising trading through challenging conditions and preparing that business for future growth built on the foundation of our leading brands. We now have the team in place to deliver the transformation necessary at divisional and central level." Tim Jones, Carr's Group chair, said: "Our strategy of focus, improve, deliver has highlighted the value opportunity that is available from each of our divisions in time. We have concluded that our Engineering Division represents a significant opportunity to deliver incremental value to shareholders now, and that it is the right thing to do to explore that opportunity. "And we are excited by the opportunities in the Agriculture Division. Global demand for meat and dairy continues to grow strongly at the same time as the imperative to reduce the climate impact of livestock. The task for Carr's Agriculture is to reduce the carbon footprint of livestock and enhance animal welfare whilst delivering better margins and productivity for farmers.
More than 120 jobs at risk as major North East employer launches restructure
Major Teesside employer Fujifilm Diosynth Biotechnologies UK has announced more than 120 jobs are at risk in the region as part of a global restructure. News has been broken to the firm’s 1,096 regional staff that bosses are carrying out a review of its Small Scale business unit, which will see employee numbers slashed around the world. In all, the pharma company is set to lose 240 jobs within its Small Scale business division – and 126 of those roles are in jeopardy at its three UK sites, all of which are in the North-east, at its main UK headquarters in Billingham and bases in Wilton and Darlington. The move came as the company released its latest business update, outlining its decision to make changes within the business unit, impacting employees at its Teesside sites, and sites in Texas, North Carolina and Massachusetts, in the US. The firm said that the wider Japan-based Fujifilm Corporation continues to invest considerably in the biotechnologies business, developing both its Small Scale and Large Scale facilities. However, it said the Small Scale business unit is being downsized after taking a hit from the “short-term challenge” of a drop in venture capital investments being made into early-stage research projects, particularly in the cell and gene therapies market. In the statement, the company said: “This restructuring is aligned to Fujifilm Diosynth Biotechnologies’ strategic direction and intended to strengthen its Small Scale Business and elevate its operational and financial performance. It lays the groundwork for a solid foundation from which to build and unlock opportunity in the market, allowing the Company the ability to thrive and reinforcing its position as a leading competitor in the industry.” Despite the looming redundancies, the company – which also has bases in Denmark and the US, where it has five sites and one due to come online next year – is continuing with a significant investment programme in the North-east. The company announced in 2021 that it would be creating up to 300 new jobs on Teesside as part of a £400m investment programme. The project is set to double the size of its Billingham plant, making it the largest multi-modal biopharmaceutical manufacturing site in the UK. The new facilities are expected to fully come online in the next two years. A Fujifilm company spokesperson said: “We recognize the impact that this will have on all our colleagues at Fujifilm Diosynth Biotechnologies UK and our wider Teesside community. All colleagues will receive Fujifilm’s full support through this challenging period. Fujifilm Diosynth Biotechnologies remains committed to the UK and will continue to invest in growing its UK operations.” Following the announcement, Alex Cunningham, Labour MP for Stockton North, called for a national strategy to aid businesses through challenging times. He said: “I am saddened by yesterday’s news from Fujifilm Diosynth about the potential job losses of more than 100 members of staff. It’s a tough time for the market and the downturn in research and development has had a direct impact on the loss of quality, skilled jobs. "This is a common issue across the chemicals and pharmaceuticals sector, and we have seen this recently with job losses at Mitsubishi and the closure of the CF ammonia plant in Billingham. We need a national industrial strategy to work with and support businesses through the tough times to keep plants open and to preserve skilled jobs.”
Cranswick hails recovery in demand leading to higher earnings
A more stable environment for farmers has helped FTSE250 meat producer Cranswick to boost revenue and profits. Fresh results for the Hessle-based manufacturer, covering the year to the end of March, show the pork and poultry specialist managed to maintain pig volumes despite a significant reduction in national numbers. Investors on the London Stock Exchange were told Cranswick saw recovery in demand after last year's initial inflation shock as customers plumped for its premium products. It meant reported revenue growth of 11.9% to £2.59bn and a 23.6% rise in adjusted group operating profit to £185.1m while statutory group operating profit rose 14.3% to £166.9m. That was part of a year in which Cranswick ploughed £46.1m into expansion with the acquisition of pig farming business Elsham Linc and meat processor Froch Foods. Read more: Asda reports increase in sales through more convenience stores Read more: Rolls-Royce to build and test nuclear reactor parts in new facility Chief executive Adam Couch said the moves had helped build the firm's self sufficiency, increasing the "size, scale and quality" of its pig herds. He also said the strong performance came in the face of sizeable challenges, particularly Cranswick's access to labour, which could be further hampered by the Government's introduction of a higher salary threshold for immigrants on Skilled Worker visas. The firm called on the Government to appreciate the scale of the challenges with chairman Tim Smith suggesting it should "better concentrate its resources" on improving resilience to national food security and financial issues for producers. In response to labour challenges, the firm said it had expanded its recruitment programme - bringing in 650 workers from the Philippines. Elsewhere, the group reported a fall in net debt, from £101.4m to £99.4m. A final dividend of 67.3p per share was proposed - a 14.5% rise on last year. Mr Couch said: "Our ongoing successful performance is down to the unwavering passion, commitment, and professionalism of our teams across the business. I would like to extend my gratitude to all of our colleagues at Cranswick for their continued dedication and support which has enabled us to deliver a strong set of results and make progress towards our strategic objectives. "Alongside our colleagues, I would also like to thank our suppliers and customers, with whom we continue to work in close partnership. Our successful performance owes a great deal to the substantial investment we have put into enhancing our farming infrastructure and expanding our vertical integration. We have increased the size, scale and quality of our pig herds through ongoing organic growth and the acquisitions of new indoor and premium outdoor pigs.
Newcastle University Dean to chair UK manufacturing network
Newcastle University's Dean of Innovation and Business has been appointed as chair of a UK-wide manufacturing network. Professor Mike Capaldi has been appointed to the Driving the Electric Revolution Industrialisation Centres (DER-IC) - a body that supports makers of power electronics, machines and drives (PEMD). DER-IC, which is funded by Innovate UK, offers open-access equipment, facilities, and expertise to the PEMD manufacturing supply chain - a key part of the UK's move towards electrification of industry. Professor Capaldi returns to DER-IC having been instrumental in the initial funding application and development of the project in 2019, alongside former chair, professor Matt Boyle. He has been involved in projects such as the Electrification Process Innovation Centre (EPIC), the North East Battery Alliance, Newcastle University's Institute of Electrification and Sustainable Advanced Manufacturing (IESAM) and Zero Carbon Futures. Read more: North East battery maker plots significant job creation amid growth plan Read more: Teesside steel revival moves closer as British Steel's electric arc furnace plan gets green light Professor Capaldi said: "I’m proud to be taking on this role at a pivotal point in DER-IC’s timeline of activity in supporting the PEMD manufacturing sector. Having been involved in shaping the team which developed the strategic direction to align academia and industry to expedite commercialisation, I’ve remained close to the sector and provided consultative support to the project. Since its inception, DER-IC has supported industry address PEMD product and manufacturing process development challenges. “It’s now more pertinent than ever that we ensure the highest levels of resilience within our supply chains and seek out new growth opportunities. This necessitates harnessing new technologies and innovative ways of working. Alongside this, the integration of PEMD technologies is essential to supporting the Government in decarbonising the UK manufacturing sector. Electrification is a key component of delivering net zero. Therefore, it’s of the utmost importance that there is increased focus on how we rise to that challenge, and DER-IC is integral to that."