# Shield Therapeutics: Looking to accelerate positive signals in the US

- Link: https://www.directorstalkinterviews.com/shield-therapeutics-looking-to-accelerate-positive-signals-in-the-us/4121074559
- Published: 2022-07-26T07:42:29+01:00
- Author: Amilia Stone

**Shield Therapeutics plc** (LON:STX) is a commercial-stage pharma company delivering
specialty products that address patients’ unmet medical needs, with an initial focus
on iron deficiency (ID). Following launch of Accrufer® in the US in July 2021, the
initial challenge was to greatly improve market awareness of its differentiating
features as an oral ID drug. The US market offers enormous potential, but the uptake
has been slower than the market had anticipated. While considerable progress has
been made, in order to accelerate prescription (Rx) growth and obtain sales traction,
more capital will be required by the end of 2022.

 * **Strategy:** In the US, Shield Therapeutics is commercialising Accrufer itself,
   thus retaining a greater share of profits for shareholders. Outside the US, Shield’s
   strategy is to out-license commercial rights to partners with appropriate expertise
   in target markets, which has been achieved in Europe, China, Republic of Korea
   and Canada.
 * **US penetration:** With its 2021 results release, Shield indicated that physician
   awareness of Accrufer had improved greatly, and payors covering >100m lives have
   now been contracted. This has resulted in a 100% increase in Rxs in 1Q’22 vs.
   4Q’21. The aim now is to increase the sales team to accelerate Rx growth.
 * **Financing update:** Shield has taken on a $10m shareholder loan to extend its
   cash runway into 4Q’22. Meanwhile, it is looking at all possible approaches to
   raise additional working capital to expand the sales team and accelerate the 
   rate of progress, with the aim of achieving peak sales at the earliest possible
   time point.
 * **Risks:** With a completely new commercial team, the key risk was in the execution
   of its commercial strategy for Accrufer in the US. Taking longer than expected
   to achieve sales traction, Shield Therapeutics will require more capital at a
   time when investors have become increasingly risk-averse.
 * **Investment summary:** Earlier in 2022, the market reacted badly to news that
   the initial uptake of Accrufer in the first six months from US launch had been
   slow. Now it has reacted again to news that the company will require more capital
   by the end of 2022. However, all the signals are that Accrufer is moving in the
   right direction. Additionally, the market is ignoring the fact that iron replacement
   is a hot area, as evidenced by recent M&A activity.

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