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Allergy Therapeutics plc
Annual Report & Accounts
www.allergytherapeutics.com
Allergy Therapeutics plc Annual Report & Accounts 2008
Allergy Therapeutics plc
Dominion Way
Worthing
West Sussex
BN14 8SA
T: +44 (0)1903 844720
F: +44 (0)1903 844726
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Our strategy
– Continue to build our European commercial infrastructure
– Continue developing improved allergy vaccines with novel adjuvants, improved 
dosing characteristics and hence patient compliance and new delivery formulations 
generating a patent protected, registered product portfolio
– Broaden the portfolio through the in-licensing and co-development of 
selected products
– Identify strong commercial partners for the non-European specialist markets
Allergy Therapeutics is a 
European-based speciality 
pharmaceutical company 
focused upon the treatment 
and prevention of allergy.
Our business
01 Highlights
02 Chairman’s Statement
04 Chief Executive’s Review
06 Our markets
08 Our products
09 Our portfolio
10 Pollinex Grass
12 Pollinex Ragweed
13 Board of Directors
14 Financial Review
Financial statements
16 Directors’ Report
22 Directors’ Remuneration Report
25 Report of the Independent Auditor
26 Consolidated Income Statement
27 Consolidated Balance Sheet
28 Consolidated Statement of Recognised 
Income and Expense
29 Consolidated Cash Flow Statement
30 Notes to the Financial Statements
55 Report of the Independent Auditor
56 Company Balance Sheet
57 Notes to the Company Balance Sheet
60 Shareholder Information
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01 Allergy Therapeutics plc Annual Report & Accounts 2008
Highlights
Financial Highlights
Operational Highlights
Net sales
+ 21%
£31 million
Net sales increased by 21% to £31 million  
(2007: £25.7 million)
Pollinex
®
 Quattro sales 
+ 25%
£11.9 million
Pollinex Quattro named patient sales 
increased by 25% to £11.9 million  
(2007: £9.5 million) 
R&D expenditure 
Reducing
£16.3 million
R&D expenditure decreased to £16.3 million 
(2007: £25.3 million) 
Highlights
Phase III studies
Successful completion of 
the two largest Phase III 
studies ever undertaken  
in allergy vaccination
Pollinex
 
Quattro efficacy
Incontrovertible proof of 
efficacy of Pollinex Quattro 
Grass and Ragweed  
Pollinex
 
Quattro Grass
Clear route to registration  
in Europe for Pollinex 
Quattro Grass 
MHRA audit
Successful MHRA audit  
at both facilities in 
February 2008  
Investment in R&D
No further significant new 
investment in R&D without 
the support of a partner 
FDA general review
FDA’s clinical hold remains 
pending their general 
review of adjuvants  
in vaccines
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02 Allergy Therapeutics plc Annual Report & Accounts 2008
Chairman’s Statement
This year Allergy Therapeutics celebrated its 
tenth birthday and it has been a remarkable 
year. The Company’s strategy is to build upon a 
strong core integrated pharmaceutical business 
and, through an extensive R&D programme, 
bring lasting relief to hayfever sufferers through 
the development of the ﬁ rst ultra-short course 
allergy vaccine, Pollinex Quattro. Great strides 
were made in implementing the strategy 
during the year, with two Phase III clinical trial 
successes. In May we announced the successful 
outcome of the ﬁ rst pivotal Phase III study of 
Pollinex Quattro against grass, Study G301, and 
as these accounts were being prepared we 
heard that the equivalent study in Ragweed 
allergy, R301, had also met its primary efﬁ cacy 
endpoint despite the curtailment of this study 
by the FDA clinical hold. Evidence of the 
efﬁ cacy of Pollinex Quattro is incontrovertible. 
Over the last ten years pursuing our strategy 
has involved the clinical development of 
Pollinex Quattro, an innovative vaccine against 
the often debilitating condition of allergic 
rhinitis and the ﬁ rst ever allergy treatment 
to contain a vaccine adjuvant, MPL
®
. The 
advantage of MPL is that the desensitising 
vaccine works after just four pre-seasonal 
injections, as compared with twenty or more 
injections with traditional immunotherapy. 
In a landmark result, our G301 study, 
undertaken in the United States, Canada and 
Western Europe and the ﬁ rst ever successfully 
conducted large-scale double blind placebo 
controlled trial in allergy vaccination to 
achieve its primary efﬁ cacy endpoint, 
provided a highly successful conclusion to 
these efforts. The outcome of this study is 
detailed elsewhere in this report. In summary, 
it proved that the product is safe and highly 
effective in treating patients’ hayfever. 
On the basis of this pivotal result, Allergy 
Therapeutics will make a submission for 
marketing authorisation in the European Union 
for Pollinex Quattro Grass. Already available 
in Europe on a ‘named patient’ basis, Pollinex 
Quattro Grass should become the ﬁ rst ultra-
short course allergy vaccine registered across 
Europe. The combination of solid scientiﬁ c 
evidence of efﬁ cacy, the associated plethora 
of clinical data, and marketing authorisations 
achieved utilising the most modern and 
demanding standards of clinical proof, will 
provide a strong foundation for the future 
sales and proﬁ t growth of the Company. 
Allergy Therapeutics has its own sales and 
marketing operations in ﬁ ve Western European 
countries – Germany, Italy, Spain, United 
Kingdom and Austria. As the registration of 
Pollinex Quattro approaches, our commercial 
teams have been preparing their sales and 
marketing infrastructures for the launch 
of this transformational new product. Led 
by Germany, the largest market in Europe 
for allergy vaccines and source of over 
70% of the Company’s revenues, this has 
involved a widespread modernisation and 
restructuring of our commercial operations.
In parallel, we have invested 10 million in 
our manufacturing facilities, human resources 
and the processes required to ensure and 
maintain the highest GMP-compliant standards. 
In essence, investment in the Company’s 
operational areas has increased as the 
considerable R&D costs have started to reduce. 
Allergy Therapeutics is now poised to capitalise 
on carefully laid and diligently executed plans.
In the United States, owing to the Food and 
Drug Administration (‘FDA’) clinical hold which 
is still in force whilst the FDA continues its 
“Great strides 
were made in 
implementing 
our strategy during 
the year, with two 
Phase III clinical 
trial successes”
Chairman’s Statement
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03 Allergy Therapeutics plc Annual Report & Accounts 2008
its broad portfolio of development vaccines, 
has announced that it will resubmit 
Cervarix, which also has been caught up 
in the FDA’s general adjuvant review, with 
new efficacy data in the summer of 2009. 
Allergy Therapeutics feels that this may 
be the catalyst for the current uncertainty 
surrounding adjuvants, MPL and Pollinex 
Quattro to be resolved. Although the FDA’s 
clinical hold has been frustrating for everyone 
at Allergy Therapeutics there is now at least 
some positive light on the horizon. Allergy 
Therapeutics’ core European business remains 
strong and growing, funded by its existing bank 
facilities and the cash it increasingly generates. 
Despite this, there has been a steady erosion 
of the share price since the Company’s clinical 
programmes were put on ‘Clinical Hold’ by the 
FDA in July 2007. It was particularly frustrating 
for the Directors that the excellent G301 
results announced in May did not reverse 
this trend. However, as Allergy Therapeutics 
moves from the extended period of R&D and 
operational investment to a core-business 
focused operating company with growing sales 
generated by Pollinex Quattro, particularly 
once approved, its profit margins are expected 
to improve to the industry average, creating 
an attractive financial profile for investors. 
Ignace Goethals
Chairman
22 September 2008
How we’re doing
Chairman’s Statement
wider review of vaccine adjuvants, there is 
still uncertainty surrounding the progress of 
the Company’s ambitions. The strategy of the 
Company is to defer any further extensive 
R&D expenditure until the FDA hold is lifted 
and a partner is identified who can fund 
such future spending. The United States is 
the world’s largest market and remains a 
significant potential upside to the Company 
without further financial exposure. 
During the year Allergy Therapeutics has been 
active in seeking clarity and a way forward 
with the FDA; the most recent guidance 
suggests that the FDA plans to introduce  
a working group on adjuvants in the next  
six months. GlaxoSmithKline, which also  
uses MPL containing adjuvant systems in  
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04 Allergy Therapeutics plc Annual Report & Accounts 2008
Chief Executive’s Review
“One of the striking 
features of the 
G301 outcome is 
the robustness of 
the result.”
The successful outcome of G301, Allergy 
Therapeutics’ pivotal Phase III study of 
Pollinex Quattro Grass, announced on 14 May 
2008 was undoubtedly the most important 
event during the ﬁ nancial year. Conducted 
predominantly in the United States, G301 
was the largest ever Phase III double blind 
placebo controlled study in the allergy vaccine 
ﬁ eld and to date is the only study of its type 
to achieve its primary efﬁ cacy endpoint.
After the ﬁ nancial year end we were delighted 
to learn that R301, a similar phase III trial 
with our Ragweed allergy vaccine, also met 
its primary efﬁ cacy endpoint which was 
particularly pleasing as this was the study 
most negatively affected by the FDA’s clinical 
hold which occurred in the middle of the 
treatment phase of this study. At the time 
of writing the data is still being assessed, 
but achieving a phase III clinical trial end-
point when fewer than 40% of the subjects 
were given the full four-shot treatment is 
very encouraging and speaks volumes for 
the efﬁ cacy of the Pollinex Quattro range. 
Variability characterises clinical trials in the 
ﬁ eld of allergy. The pollen seasons vary from 
country to country, area to area, and year 
to year. The patients recruited into studies 
vary. The subjective assessment of symptom 
scores by patients in the studies is prone to 
variation. The compliance of the subjects to 
the study protocols is geographically highly 
variable. During 2007, three other allergy 
vaccine products were in Phase III studies 
in the United States and all ‘failed’. One of 
these was a successful European product in 
the same allergen, in the same geography 
and even using some of the same study 
centres as G301. We are therefore very 
pleased that Pollinex Quattro has been 
successful in this most stringent of tests. 
One of the striking features of the G301 
outcome is the robustness of the result. All 
of the key prospectively deﬁ ned analyses 
are positive, showing a robust, clear and 
statistically signiﬁ cant beneﬁ t over placebo. 
Another feature, which bodes well for the 
future patient experience with Pollinex Quattro, 
is the unusually high levels of compliance; all 
but 5% of the patients completed the course 
of treatment. In most allergy vaccine studies, 
including those of sub-lingual products where 
the main proposed advantage is patient 
convenience, the compliance levels have been 
signiﬁ cantly worse and of course in real life, 
outside the controlled conditions of the clinical 
trial, compliance is likely to be poorer still. The 
excellent compliance with Pollinex Quattro is 
explained by the small number of injections, 
just four, and the speed of the treatment; it can 
be completed in as little as three weeks and as 
close as three weeks to the start of the pollen 
season. We believe that the result in terms 
of patients actually receiving the treatment 
as intended by their physicians will make 
ultra-short course injected allergy vaccines the 
treatment of choice for allergy specialists and 
their moderate to severe allergic patients. 
The G301 study will form the basis of a 
submission in early 2009 to the European 
authorities for the licensure of Pollinex Quattro 
Grass, with the ﬁ rst registration anticipated 
in or before 2010. The initial target market 
will be Germany, followed by Italy, Spain, 
UK and Austria, in each of which we have 
an existing commercial infrastructure, and 
France and the Netherlands. These seven 
countries represent the biggest commercial 
potential in Europe for the product. 
Chief Executive’s Review
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05 Allergy Therapeutics plc Annual Report & Accounts 2008
was highlighted during the year in a report by 
the House of Lords Science and Technology 
Committee. Together with other stakeholders 
(professional groups, patient groups and 
companies), Allergy Therapeutics is supporting 
the National Allergy Strategy Group in its 
efforts to bring about an appropriate response 
from the Government to the House of Lords 
report, and to implement its recommendations. 
Success in this would mean that the UK for 
the fi rst time could have the professional 
infrastructure to treat sizeable numbers of 
British patients with allergy vaccines.
The three key characteristics of Pollinex 
Quattro, setting it apart from the competition, 
are ‘fast, strong, safe’. These characteristics 
are derived from the patented adjuvant MPL. 
The German marketing team has come up 
with a new ‘visual image’ to assist in the 
promotion of the product by focusing on 
these characteristics. After thorough market 
research to confi rm its effi cacy in promoting 
the key messages and having them retained 
by the prescribing physicians, Popeye was 
selected as the embodiment of ‘fast, strong, 
safe’. This innovative new campaign has 
been launched this season in Germany and 
the fi rst indications are that it is proving very 
effective. On a more subtle note, in April, 
Pollinex Quattro was awarded the 2008 
Biermann Pneumologie Preis for ‘outstanding 
therapy concepts in pulmonology’.
Our programme of constant improvement 
in Supply Operations continues to bear fruit, 
evidenced in the excellent service record last 
year. The Medicines and Healthcare products 
Regulatory Agency (‘MHRA’) conducted an 
inspection in February 2008, which passed 
very successfully with no major fi ndings. 
The ‘lean manufacturing’ initiative, which 
builds upon the investments made in plant 
and people to establish streamlined and 
effi cient processes, improving compliance, 
cutting costs and enhancing performance, 
has begun in earnest and benefi ts are 
already being felt across the business.
In summary, it has been a year of achievement 
after many years of investment and hard work 
by all involved. Allergy Therapeutics today 
has the fi rst ever clinically proven ultra-short 
course allergy vaccine and we are poised for 
submission for registration with the operational 
infrastructure being prepared to exploit it. 
Keith Carter
Chief Executive Offi cer
22 September 2008
Our vision
– To generate and effectively utilise 
scientifi c and clinical information to 
maximise our Company potential 
and benefi t allergy sufferers.
– To ensure that all our work is 
conducted to the highest scientifi c 
and ethical standards for the benefi t 
of patients and shareholders.
“The excellent compliance with 
Pollinex Quattro is explained by 
the small number of injections, 
just four, and the speed of 
the treatment.”
Chief Executive’s Review
The planned European registrations will be 
supported by our heightened emphasis on 
the development and optimisation of our 
commercial operations in the key European 
markets. Our new management team in 
Germany enters its second year, and the 
focused projects they are implementing 
are gaining traction, with many of the 
operating key performance indicator targets 
being met on schedule and exceeded. Very 
experienced and energetic new General 
Managers have been appointed for both 
Italy and Spain, Nunzio di Grazia and 
Immaculada Abella Diez respectively, to 
continue and accelerate the optimisation of our 
commercial infrastructure in those markets. 
In the United Kingdom we have a small 
presence, refl ecting the small number of 
allergy specialists in the country. The issue 
of the poor provision of healthcare services 
to allergy sufferers in the United Kingdom 
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06 Allergy Therapeutics plc Annual Report & Accounts 2008
Net sales by country
Germany
The most important market for the 
Company, Germany is also the single largest 
immunotherapy market in the world by 
value with IMS reporting annual sales in 
this market of €260 million. The market 
has a strong preference towards injectable 
rather than sublingual immunotherapy 
and this favours Pollinex Quattro.
The Company restructured the business in 
Germany in 2007 and we expect to see the 
impact of this in the coming years. Changes 
that took place include the appointment of 
a new General Manager as well as two new 
District Managers and a complete modification 
of our sales and marketing activities.
Allergy Therapeutics directly conducts 
commercial operations in most of the major 
immunotherapy markets in the world. We 
have a strong presence in Europe with our 
own operations in several markets including 
Germany, Italy, Spain and the United Kingdom. 
In markets without a direct presence, we 
often make our products available through 
distributors. The most important distributor 
markets are Canada, Holland and South Korea. 
We are restructuring our operations 
across Europe. Part of this process 
has involved the appointment of new 
talented and experienced management 
teams in our most important markets to 
accelerate the growth of our business.
Our markets
Our markets
¢ 7% Italy
¢ 70% Germany
¢ 17% UK and export market
¢ 6% Spain
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07 Allergy Therapeutics plc Annual Report & Accounts 2008
Our people
Italy
We estimate the total Italian immunotherapy 
market to be worth €55 million in sales per 
year. There are two market factors that hamper 
our opportunity in this market. One is that the 
market is largely a sublingual one although 
there are signs that this may be about to 
change. The second factor is that the market is 
in decline due to negative economic conditions 
impacting patients and their ability to pay for 
vaccines. We have conducted a review of our 
operations in this market and have made and 
continue to make major changes. In addition 
to a new General Manager, we have made 
signifi cant modifi cations to our activities, as 
in Germany, and we have added improved 
data systems to track and grow our business.
Spain
Total market sales per year in Spain are 
estimated to be €56 million. The market 
has been growing in high single digits 
over recent years which we expect 
will continue. The market favours 
injectable over sublingual products.
As with the other markets, we have 
restructured our business in Spain with 
the recent appointment of a new General 
Manager and changes to both our 
activities and to our information systems 
that support sales and marketing.
United Kingdom
The United Kingdom, our home market, is 
one of our most challenging markets. For 
historical reasons the use of immunotherapy 
products went into severe decline in the 
1980s and 1990s and has yet to recover. 
The use of immunotherapy products in this 
market signifi cantly trails that of similarly 
sized European countries. To exacerbate 
this, there are few allergy specialists in this 
country. Recently we appointed a new Country 
Manager to focus on not just growing our 
market share but also in growing the market 
as a whole. We are working with several 
Groups who are actively seeking solutions 
to address these problems. These actions 
include lobbying the government for greater 
focus on allergy patients and their treatment.
Peter Keysers, General Manager Germany
Peter has been with the Company since 2007. 
He joined us from Novo Nordisk where he 
had responsibility for sales, marketing and 
medical activities as Sales Director. Peter has 
eighteen years of experience in the industry.
Nunzio Di Grazia, General Manager Italy
Nunzio has worked within the pharmaceutical 
industry for 18 years with companies including 
Abbott and Organon. Most recently Nunzio was 
Sales and Marketing Director at Shire and joined 
Allergy Therapeutics during the summer of 2008.
Our markets
Imma Abella, General Manager Spain
Imma joined the Company in September 2008 
bringing with her twenty years experience 
within the pharmaceutical industry. She has 
previously worked with leading companies 
including Sandoz, Novartis and UCB. Imma 
joins the Company from UCB where she was 
Senior Director of Global Operations.
Ian Reid, Country Manager United Kingdom
Ian assumed responsibilities in 2007 as Country 
Manager in the United Kingdom after joining 
the Company in 2005. Prior to joining the 
Company, Ian managed an oncology specialist 
sales force for Schering Plough adding to his 
extensive twenty-fi ve years within the industry.
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08 Allergy Therapeutics plc Annual Report & Accounts 2008
Pipeline
Our products
According to current opinion, IgE mediated 
allergies (type one allergies) are due to 
dysregulation of the T helper lymphocyte 
(TH) cell. Whereas healthy people develop 
tolerance to allergens, allergy sufferers have 
a TH2-dominated immune response with 
increased IgE and corresponding clinical 
symptoms. This dysregulation of the immune 
system can be counteracted efficiently using 
specific immunotherapy (SIT). By administering 
high doses of allergen, the balance between 
TH1 and TH2 response to the allergen can 
be restored. Since SIT was first carried out 
successfully by Leonard Noon in 1911, SIT 
has become established as the only
causal therapy for type 1 allergies.
Ever since the Company (as C. L. Bencard) was 
founded in 1934, Allergy Therapeutics has been 
a pioneer in allergy research. In 1999 Allergy 
Therapeutics began a transformation of SIT by 
introducing allergy vaccination with only four 
injections per course (Pollinex Quattro). The 
short treatment period is due to the use of L-
tyrosine absorbed allergoids and the innovative 
adjuvant, monophosphoryl-lipid A (MPL). An 
adjuvant is a substance which improves the 
immune response to an antigen or allergen.
MPL is derived from a lipopolysaccharide 
(LPS) which is obtained from the cell wall of 
Salmonella Minnesota R 595 using a process 
of extraction, purification and detoxification. 
The history of MPL goes back to the first 
studies carried out by Johnson et al. in 
1956, in which the adjuvant properties of 
LPS were demonstrated for the first time. 
It subsequently transpired that the lipid A 
fraction of the LPS was responsible for the 
adjuvant effect. The team led by Edgar Ribi 
(Hamilton, Montana) modified lipid A so that 
the immunogenic properties were retained 
and toxicity was considerably reduced. The 
final product has the chemical name 3-O-
desacyl-4’ monophosphoryl-lipid A (MPL).
As a vaccine adjuvant, MPL has been used 
for many years in vaccine studies and has 
been tested on over 30,000 subjects with 
more than 100,000 doses. Vaccines with 
systems containing MPL have been evaluated 
in various indications such as cervical cancer 
and malaria at GlaxoSmithKline. Two vaccines 
with an adjuvant system containing MPL have 
received broad approval, including in Europe: 
a hepatitis B vaccine and an HPV vaccine 
to protect against cervical cancer – Fendrix 
and Cervarix, respectively. These modern, 
successful vaccines are already widely used.
The adjuvant effect of MPL in SIT has been 
documented in numerous studies. The adjuvant 
effect of MPL is seen in its essential role of 
promoting the switch from a TH2-directed 
immune response (with IgE induction) 
to a TH1-directed immune response.
Following years of significant investment our 
Pipeline has now advanced into late stage 
development focusing on the major pollen 
allergies of grass, tree and ragweed in the 
major markets of Europe and North America. 
Impact of this work on sales is already 
being experienced as significant clinical data 
and publications are being generated. 
Although clinical work in the United States has 
halted under the FDA’s clinical hold, Pollinex 
Quattro, incorporating MPL as an adjuvant, for 
grass allergy is entering into Registration phase 
in Europe with a submission planned for early 
2009. Pollinex Quattro products for trees and 
ragweed are in Phase II and III respectively. 
The focus on MPL in our development work 
crosses over to sublingual products where 
we have completed a Phase I/II study in 
grass. Our goal in this programme is to 
develop a more convenient and effective 
sublingual product than is currently available. 
Finally, we are conducting pre-clinical 
work with Japanese Cedar which is the 
single most significant pollen in Japan.
Our products
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09 Allergy Therapeutics plc Annual Report & Accounts 2008
Our product pipeline
Our portfolio
Allergy Therapeutics’ current portfolio of 
competitive products includes marketed 
products containing allergoids (modifi ed 
allergens), tyrosine depot and MPL adjuvant. 
These technologies offer signifi cant benefi ts 
over older allergy vaccination technologies. 
Allergy Therapeutics’ development programme 
is designed to improve product characteristics 
by providing an improved safety profi le and 
reduce the number of injections over the 
treatment period, resulting in well-accepted 
registered products likely to be prescribed 
by a higher percentage of physicians.
Pre-clinical Phase 
1
Phase
 
2
Phase
 
3
Registration
Japanese Cedar Sublingual MPL Trees
(US/Canada/Europe)
Grasses
(US)
Ragweed
(US/Canada)
Grasses
(Canada/Europe)
Pollinex Grasses & Rye Pollinex
®
 Quattro Pollinex Trees Oralvac
®
 (sublingual)
Our portfolio
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10 Allergy Therapeutics plc Annual Report & Accounts 2008
Pollinex Quattro Grass Results
The Pollinex Quattro Grass G301 study was a 
global, multi-centre, double-blind, placebo-
controlled, Phase III study and is the largest 
allergy vaccine study ever conducted. The 
primary objective of this study was to 
compare the effi cacy of Pollinex Quattro 
Grass versus placebo as measured by the 
combined allergy symptom (eyes and nose) 
plus medication scores (CSMS) during the four 
peak weeks of the 2007 grass pollen season.
In May the Company was pleased to announce 
that the study was successful and that it 
had met it’s primary endpoint. The primary 
effi cacy outcome showed a highly statistically 
signifi cant 13.4% benefi t in the Pollinex 
Quattro Grass treatment Group compared 
with placebo (p=0.0038). The ‘non-missing 
data’ population demonstrated this benefi t to 
be as great as 26.9% (p=0.0031). In secondary 
analyses, the benefi ts of Pollinex Quattro Grass 
were demonstrated in a 12% improvement 
in CSMS over the entire season (p=0.0093); 
an 11% improvement in eye and nose 
symptoms (p=0.013) and a 17% improvement 
in patients with severe rhino-conjunctivitis 
(p=0.0023). Other sub-Group analyses showed 
statistically signifi cant benefi ts of up to 63%.
The study included patients with a history of 
moderate to severe symptoms of seasonal 
allergic rhino-conjunctivitis ascribed to grass 
pollen exposure that required repeated 
use of antihistamines, nasal steroids, and/
or leukotriene modifi ers. The severity of 
symptoms was assessed with a Disease 
Severity Questionnaire and sensitivity to 
grass pollen was confi rmed by skin prick 
test and RAST (IgE test). Sensitivity to 
other allergies with mild symptoms was 
permitted. Patients with moderate to 
severe asthma were excluded together 
with patients with autoimmune or other 
clinically signifi cant and relevant disease.
Patients received four injections of Pollinex 
Quattro Grass at weekly intervals with 
allowance for dose adaption in case of 
adverse events and treatment was to 
be completed at least 3 weeks before 
the start of the grass pollen season.
G301 study
 1 0 2 8
Patients recruited in study
Study G301 was a double-blind placebo-
controlled study conducted in 94 centres 
in the United States, Canada and Europe. 
A total of 1,028 patients were recruited 
into the study and randomised to receive 
Pollinex Quattro Grass or placebo.
Pollinex Grass
– Clinically signifi cant 
b e n e fi t
– Statistically signifi cant 
difference
– 13.4%–62.9% 
improvement
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11 Allergy Therapeutics plc Annual Report & Accounts 2008
Overall, a total of 1,028 patients were recruited 
in 94 centres (620 patients in the United 
States, 291 patients in Canada, 65 patients 
in the United Kingdom and 52 in Austria). 
Patients were randomised (one active: one 
placebo), and study populations included the 
intent-to-treat (ITT) population for primary 
efficacy outcome (1,028 patients) and the ‘non-
missing data’ (NMD) set of 343 patients with 
complete electronic symptom plus medication 
score data for the four peak pollen weeks.
Demographically both active and placebo 
Groups were well balanced, the mean 
age of patients was 36yrs, 95% reported 
rhinitis and conjunctivitis (14% asthma) 
with an average duration > 20yrs. 
The study showed exceptional results in 
terms of compliance and safety. Greater 
than 95% of patients on Pollinex Quattro 
Grass completed the course of treatment 
and 92% completed the study altogether. 
Seven patients on active treatment and 
four patients on placebo withdrew from 
the study owing to adverse events.
There was an improvement in Quality of Life 
during the pollen season following treatment 
with Pollinex Quattro Grass demonstrated by 
a statistically significant difference compared 
with placebo in RQLQ with values ranging 
from 0.34-0.64 points difference (NMD). 
There was also a 6.5-fold increase in grass-
specific IgG with treatment with Pollinex 
Quattro Grass with no change on placebo.
Altogether treatment with Pollinex Quattro 
Grass was very well tolerated. The commonest 
side effects were local injection site reactions 
reported in total by just over half the patients. 
Individual symptoms included pain (32%), 
“Proof of efficacy and safety  
of Pollinex Quattro in this grass  
study is a breakthrough for  
allergy sufferers.” Professor Tony Frew MB, BChir, MD, FRCP
 Professor of Allergy and Respiratory
 Medicine, Brighton and Sussex  
 Medical School
Pollinex Grass
itching (30%), swelling (25%) and redness 
(19%) and the majority were mild in intensity. 
With each individual injection, 63%–70% 
of patients reported no adverse effects. 
Only one adverse event was classified as 
serious and considered ‘possibly related’ to 
treatment (transverse myelitis, resolved).
In conclusion the study met its primary 
objective to show that pre-seasonal 
immunotherapy with Pollinex Quattro Grass 
demonstrates significant clinical benefit in 
patients with moderate to severe seasonal 
allergic rhinitis and/or conjunctivitis ascribed 
to grass pollen exposure. Furthermore, 
the treatment is well tolerated with a 
very high rate of patient compliance.
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12 Allergy Therapeutics plc Annual Report & Accounts 2008
Late Breaking News – Pollinex Quattro Ragweed Results
pharmacotherapy. Patients were randomised 
on a two active to one placebo basis and 
received four rising dose injections of Pollinex 
Quattro Ragweed at weekly intervals.
The study was planned to recruit 1,074 
patients in up to 85 centres in the United 
States and Canada. Recruitment and treatment, 
however, were curtailed by the FDA clinical 
hold on G301. At that time of the clinical 
hold 993 patients had been enrolled and 
381 patients had received all four injections 
and completed the course of treatment. 
The primary analysis was conducted on the 
group of patients who completed the course 
of treatment with secondary analysis of 
the ITT population (which included patients 
who received any number of injections).
Initial results demonstrate that the study 
met its primary endpoint with Pollinex 
Quattro Ragweed demonstrating a 
statistically significant 12.0% benefit over 
placebo (p=0.0478). Furthermore, although 
the effect size was less, a statistically 
significant benefit (p=0.0283) was also 
demonstrated in the original ITT population. 
Pollinex Ragweed
Pollinex Quattro Ragweed (R301) was 
also a multi-centre, double-blind, placebo-
controlled, Phase III study conducted in North 
America and is the second largest allergy 
vaccine study ever conducted. The primary 
objective of this study was to compare the 
efficacy of Pollinex Quattro ragweed versus 
placebo as measured by the combined allergy 
symptom (eyes and nose) plus medication 
scores (CSMS) during the three peak weeks 
of the 2007 ragweed pollen season.
The study was similar to G301 and included 
patients with moderate to severe allergic 
rhino-conjunctivitis ascribed to ragweed 
pollen that required repeated use of 
Pollinex Quattro Ragweed
Pollinex Quattro Ragweed (R301) was also a multi-centre, 
double-blind, placebo-controlled, Phase III study conducted 
in North America and is the second largest allergy vaccine 
study ever conducted.
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13 Allergy Therapeutics plc Annual Report & Accounts 2008 Board of Directors
Board of Directors
Ignace Goethals
Non-executive Chairman (63) 
Ignace has had a successful career in the 
pharmaceutical industry, with Eli Lilly, Squibb/
Bristol Myers Squibb and SmithKline Beecham 
rising to the highest levels prior to retiring 
at the end of 1998 when he was Head of 
World-wide Supply Operations. His experience 
is exceptionally broad, covering sales and 
marketing, country and regional general 
management positions, licensing and business 
development, business unit management 
(Biologicals and Animal Health) and supply. 
Ignace has a degree in Applied Economics 
from the University of Louvain (Belgium) and 
an MBA from the University of Chicago. 
As Non-executive Chairman, Ignace is 
responsible for leadership of the Board 
by ensuring Board effectiveness, good 
corporate governance and effective 
communication with shareholders. 
Ignace sits on the Audit and 
Remuneration Committees.
Keith Carter
Chief Executive Officer (49) 
Keith is a founding shareholder of Allergy 
Therapeutics, and was part of the team 
that orchestrated the MBI of the Company 
from SmithKline Beecham. Prior to this 
his career was spent in corporate advisory 
and corporate finance work with Lloyds 
Merchant Bank, Drexel Burnham Lambert and 
latterly at NatWest Markets, the investment 
banking arm of the National Westminster 
Bank, where he headed the Pharma Group. 
He began specialising in advice to the 
pharmaceuticals industry in 1990, when 
he ran his own corporate finance boutique. 
Keith has a First Class Honours degree in 
Economics from Cambridge University.
As Chief Executive Officer, Keith is responsible 
for the executive management of Group 
operations, investor relations, implementation 
of the Board’s collective decisions overseeing 
all operational aspects of the Group and 
directing the long-term strategy.
Ian Postlethwaite
Finance Director (45) 
Ian joined Allergy Therapeutics in April 2002 
as Finance Director. Prior to this he worked for 
Ellerman Investments (1997–2002), a UK private 
equity house, undertaking the roles of Chief 
Executive Officer with AFS, one of the largest 
independent finance houses in the UK, and 
Finance Director with a number of successful 
start up technology companies. Previously he 
held senior finance positions with Ericsson, 
from 1994–1997, and Philips Electronics from 
1989–1994. He is a qualified accountant and 
a Fellow of the Chartered Association of 
Certified Accountants. Ian has a BSc (Hons) in 
Geological Sciences from Aston University. 
As Finance Director, Ian is responsible 
for Group financial reporting and control, 
tax, finance systems and internal audit. 
Ian is also the Company Secretary, a 
position he has held since 2004.
Thomas Holdich
R&D Director (49) 
Tom is a pharmaceutical physician whose 
speciality is global drug development. Tom 
joined Allergy Therapeutics in August 2004. 
He has been involved in clinical research 
since 1983 and has held senior positions in 
both large pharmaceutical companies, such 
as AstraZeneca, and smaller companies, 
such as Shire Pharmaceuticals, for the past 
20 years. He has directed international 
clinical research projects from Phase 
I (first time into man) to Phase IV (life 
cycle management) in therapeutics areas 
ranging from epilepsy and schizophrenia 
to HIV and inflammatory bowel disease. 
As R&D Director, Tom is responsible 
for establishing and maintaining 
the Group’s R&D programmes.
Christian Grätz
Director, Market Operations (55) 
Christian joined the Company in July 1998. 
Prior to this he was Marketing & Sales 
Director at Akzo Nobel/Organon GmbH 
between 1996 and 1998. During his time 
at Organon he restructured the Company, 
in-licensed the entire gynaecology product 
portfolio from Orion (Finland) and successfully 
managed a Joint Venture with Janssen-
Cilag. Previously Christian was Business Unit 
Director at American Cyanamid/Lederle GmbH 
(1991–1996). He brought Lederle’s vaccines 
from the United States to Europe where they 
were launched in 1994 and rapidly gained 
significant market share. When Lederle and 
American Home Corp. merged, Christian 
was responsible for restructuring the new 
Company and appointed Division Director 
Germany. Before joining Lederle he held a 
number of senior management positions with 
large companies including BASF/Knoll AG and 
Beiersdorf AG. Christian lectured on economics 
at Universities of Hagen and Gelsenkirchen and 
has a Dr. (rer. oec.) from Bochum University. 
As Market Operations Director, Christian 
is responsible for global sales and 
marketing activities.
Stephen Smith
Non-executive Director (55) 
Stephen is a Chartered Management 
Accountant, Fellow of the Association of 
Corporate Treasurers and Member of the 
Institute for Turnaround who, since 1995, 
has operated as an independent consultant 
and interim manager (CRO/CEO/COO/FD) on 
an international basis. Up to 1995 Stephen 
held various senior financial positions in 
UK based international public companies 
including six years as Group Treasurer of The 
Rank Organisation and three years as Group 
Finance Director of a quoted hotel company. 
Stephen chairs the Remuneration and 
Audit Committees.
Virinder Nohria
Non-executive Director (54) 
Virinder works as a strategic consultant in 
international drug development. He has 
lead teams in many successful interactions 
with regulatory bodies in several countries, 
particularly the FDA. Dr. Nohria served as 
Chief Medical Officer and Vice President 
of Xcel Pharmaceuticals Inc., a specialty 
pharmaceutical company in the United States 
until the sale of the Company to Valeant 
Pharmaceutical International in early 2005. 
Prior to joining Xcel, Dr. Nohria held several 
positions in biotechnology and pharmaceutical 
companies including UCB Pharma and Eli Lilly 
and Company. Dr. Nohria is a board certified 
paediatric neurologist and received his 
medical degree from Cambridge University 
and doctorate in neuropharmacology from 
University of Bradford. He is currently based 
in the United States and has affiliations 
with Emory and Duke Universities. 
Virinder sits on the Remuneration Committee.
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14 Allergy Therapeutics plc Annual Report & Accounts 2008 Financial Review
Financial Review
“Company gross sales 
in Germany were 
£23.8 million (2007: 
£18.9 million), an 
increase over the 
previous year of 26%.”
The following review should be read in 
conjunction with the Group’s consolidated 
ﬁ nancial statements and related notes 
appearing elsewhere in this annual report. 
Adoption of IFRS
From 1 July 2007, Allergy Therapeutics has 
adopted International Financial Reporting 
Standards (IFRS) in the preparation of its 
ﬁ nancial statements. This has required 
a restatement of the results for the year 
ended 30 June 2007 which had been 
reported previously under UK GAAP. 
Details of this restatement are shown in 
the transitional reconciliations presented 
in note 33 to the ﬁ nancial statements.
IFRS has different presentation and disclosure 
requirements to UK GAAP and has involved 
signiﬁ cant changes to the presentation of 
the ﬁ nancial statements. Wherever possible, 
the Group has attempted to present the 
ﬁ nancial statements in a consistent manner 
with those presented in the past.
Revenue
For the year ended 30 June 2008 total gross 
sales increased by 25% to £34.2 million 
(2007: £27.4 million). Sales included the 
receipt of milestone payments from the 
Canadian licensee of £2.7 million (2007: 
£1.2 million). After statutory rebates in the 
German market net sales were £31.0 million 
(2007: £25.7 million), an increase over the 
previous year of 21%. Sales beneﬁ ted from 
the increasingly strong Euro; the relative 
strength of the Euro over the previous year 
adding £1.9 million to the net sales.
Own markets
The Group competes directly in eight 
European markets, including three of 
Europe’s four most important for allergy 
vaccination: Germany, Italy and Spain. 
The Group has the third largest allergy vaccine 
company in Germany, which is the largest 
market in the world for ‘ﬁ nished form’ allergy 
vaccines. The allergy vaccine market in 
Germany continued to grow during the year 
at the rate of 20% (2007: 9%). Company gross 
sales in Germany were £23.8 million (2007: 
£18.9 million), an increase over the previous 
year of 26%. The rebate on pharmaceutical 
sales, which is market wide, changed on 
1 May 2006, for two years hence, when it 
was announced that any price rise since 
1 November 2005 would be added to the 
rebate and since approximately 70% of sales 
originate in Germany, the charge increased to 
£3.2 million for the year (2007: £1.6 million). 
In Italy and Spain the Group has demonstrated 
a positive performance. In Italy annual sales 
were £2.5 million (2007: £2.3 million), an 
increase of 9% and in Spain sales were £1.9 
million (2007: £1.7 million), an increase of 12%. 
Operations in the UK, the Czech and 
Slovak Republics, Poland and Austria 
performed well contributing £1.5 
million to sales (2007: £1.4 million).
Licensees
The Group also sells through licensees and 
distributors, accounting for 13% of the gross 
sales. Total sales for the year were £4.5 million 
(2007: £3 million) an increase of 50% on 
the previous year. Included in licensee sales 
are milestone receipts from the Company’s 
Canadian licensee for Pollinex
®
 Quattro; in 
the year milestones totalling £2.7 million 
(2007: £1.2 million) were received, triggered 
by reaching certain development activities.
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15 Allergy Therapeutics plc Annual Report & Accounts 2008
Product sales
The Group’s fl agship product, Pollinex 
Quattro continued to sell well, with gross 
sales of £11.9 million (2007 £9.5 million) 
an increase of 25% over the previous year. 
Cost of sales and net operating expenses
In general, manufacturing costs have 
increased as a result of an increase in 
headcount to ensure compliance with 
recommended good manufacturing practice 
(GMP) and due to investments in new 
plant and machinery leading to increased 
depreciation costs. As a consequence of 
these investments, cost of goods sold 
was £10.9 million (2007: £10.1 million), 
an increase of 8% over the previous year.
Investments in restructuring the German 
sales infrastructure increased the marketing 
and promotion spend, the main component 
of distribution costs, by 14% to £12.9 million 
(2007: £11.3 million). Administrative expenses 
have increased by 25% to £6.6 million (2007: 
£5.3 million) due mainly to the inclusion of the 
cost of fi nancial derivatives under IFRS. As the 
development programme for Pollinex Quattro 
neared its end, R&D costs have decreased by 
36% to £16.3 million (2007: £25.3 million). 
Most of the activity relates to the extensive 
Phase III programme for Grass and Ragweed.
Results of operation
As a consequence of investment in the 
development programmes in preparation for 
the launch of Pollinex Quattro on a world-wide 
basis the Group recorded an operating loss 
on ordinary activities of £15.6 million (2007: 
loss £26.3 million). However, before research 
and development costs, the operating profi t 
including milestones was £0.7 million (2007: 
loss of £0.9 million), which allows for a more 
reasonable appreciation of the improvement 
of the core business performance this year.
Taxation
As a result of its investment in research and 
development, the Company has benefi ted 
in the past from making R&D claims. These 
claims have given the Company enhanced 
deductions for tax purposes and the possibility 
of benefi ting from the receipt of R&D tax 
credits. The last R&D tax credit has been 
received for the year ended 2006. The Budget 
announcement in April 2006 put forward 
proposals to revise the defi nition for small and 
medium sized entities regarding the number of 
employees; the number being increased from 
250 to 500. The Group’s average headcount for 
this year remained above the 250 threshold. 
The Budget proposals were approved by the 
European Commission in July 2008 and the 
Company should be able to make a claim for 
R&D tax credits for the period beginning 
1 August 2008, subject to meeting the relevant 
criteria for the period ended June 2009.
The Group in total has losses to carry forward 
of £59 million (2007: £39 million), although in 
Germany it is likely that corporation taxes will 
fall due before other entities in the Group.
Net assets
Due primarily to investments in R&D the 
balance sheet had net liabilities at 30 June 
2008 of £11.3 million (2007, assets: £8.6 
million), a decrease of £19.9 million.
Capital expenditure on tangible fi xed assets in 
the year was £2.3 million (2007: £2.9 million); 
contributing to the increase in the value of 
tangible fi xed assets to £6.9 million from £5.5 
million. The main component of this spend 
is the improvement to the manufacturing 
plant for the production of Pollinex Quattro.
Stock values increased by 18% during the year 
to £5.8 million (2007: £4.9 million) following 
the strategy, initiated the year before last to 
maintain supply to markets, resulted in higher 
levels of key stock items held, and also because 
the strategic investment in manufacturing 
is increasing stock costs in general. 
 
Creditors falling due within 1 year were lower 
at the year end by 26% to £8.1 million (2007: 
£10.9 million), primarily due to a decrease 
in accruals and trade creditors relating to 
development activities at the end of the year 
offset by an increase in short term borrowings.
Capital structure
The Group fi nances its operations through 
cash generated from its core business and 
bank lines. The Group arranged a senior 
debt facility with its bank, RBS, in May 
2007 for Euro €40m to be drawn down 
over a two year period conditional upon 
the operating business performance. The 
balance drawn at the year end was €31.6m.
The Group’s funding requirements depend 
on a number of factors, including the 
Group’s product development programmes, 
which began to decrease in activity this 
year and are set to decrease further 
in the following fi nancial year. 
Cash ﬂ ows
As at the 30 June 2008 cash totalled £2.3 
million, a decrease of £3.4 million from 
£5.7 million at 30 June 2007 due primarily 
to the signifi cant investment in the year 
in the R&D programme. For the year, 
net cash used in operations amounted 
to £19.1 million (2007: £20.7 million). 
Ian Postlethwaite
Finance Director
22 September 2008
Financial Review
“The Group’s fl agship product, Pollinex Quattro 
continued to sell well, with gross sales of 
£11.9 million (2007 £9.5 million) an increase 
of 25% over the previous year.”
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16 Allergy Therapeutics plc Annual Report & Accounts 2008
The Directors present their annual report and the audited financial statements for the 12 months ended 30 June 2008. The financial statements  
are for Allergy Therapeutics plc (the ‘Company’) and its subsidiary companies (together, the ‘Group’). 
Principal activities
The Group is engaged in the development, manufacture, marketing and sale of a range of pharmaceutical vaccine products designed for the 
immunological treatment of the allergic condition. Vaccinations take the form of allergen-specific, named-patient-specific and standard products in 
injectable and sublingual presentations. The business is headquartered in Worthing, West Sussex, where development and manufacturing is based, 
with sales and marketing subsidiaries in Germany, Austria, Italy and Spain and representative offices in Poland and the Slovak Republic.
Results
The loss for the year after taxation was £20,297k (2007: £23,256k). The results for the year are set out on page 26 and are dealt with in more detail  
in the Financial Review. 
Business Review
The purpose of this business review is to inform members of the Company and help them to assess the Group’s performance during the year, through 
financial and non-financial activities, outlining the trends and factors which are likely to influence future developments. A review of development 
and performance of the Group, including important events, progress during the year, the financial performance during the year and likely future 
developments, can be found in the Chairman’s Statement on pages 2 and 3, the Chief Executive’s Review on pages 4 and 5 and the Financial Review 
on pages 14 to 15 and are incorporated in the Directors’ Report by reference.
Fair review of the Company’s business
Turnover in the year increased to £31.0 million compared to £25.7 million in the previous year, an increase of 21%.
Operating profit before development costs, which reflects the performance of the core business, was £0.7 million compared to a loss of £(0.9) million 
in the previous year, the increased profit a consequence primarily of higher sales partly offset by smaller increases in operating expenses.
Staff turnover in the UK during the year was 13.4% (2007: 15.2%), compared to an average UK staff turnover rate of 19.2% (2007: 18.1%) (data 
supplied by the Chartered Institute of Personnel and Development.)
Description of the principal risks and uncertainties facing the Company
Risk that the Group is unable to provide effective commercially successful products
Continued development of viable new products is key to the success of the Group and is a costly and lengthy process. All development projects 
and business cases are reviewed and Board approval sought to ensure budgets are maintained. The clinical hold imposed by the FDA on Pollinex 
Quattro last year remains as part of a wider ongoing investigation into adjuvant technologies. A key risk facing the Company with respect to new 
development in the United States is whether the clinical hold is lifted and if so, on what terms. The registration of Pollinex Quattro in Europe, 
however, remains a key priority and is continuing.
Product liability risk
Despite extensive product testing prior to market launch, products may produce unanticipated adverse side effects that may hinder their 
marketability. The Group may be insufficiently covered for any potential litigation which in some cases can potentially be open-ended. The Group’s 
manufacturing facilities and those of some of its suppliers are subject to regulatory requirements and there is a risk that such facilities may not 
comply with such requirements.
Intellectual property risk
Group patents may be challenged at any time and any unsuccessful defence may cause the Group to lose protection for its products and subsequently 
affect further development and sales. The Group is reliant on some intellectual property owned by external stakeholders that, if lost, will hinder or 
cease production for some of it products. 
Economic risks
A high level of risk is attached to the research, development and commercialisation of innovative drugs. The Group ensures that business cases are 
scrutinised before Board approval and that any increases in costs are justified. Key suppliers may be unable to execute contractual requirements that 
hamper product development and/or the route to markets, but the Group maintains appropriate measures to protect its supply chains. The Group may 
be unable to attract partners or licencees on favourable terms or recruit the right staff to help develop and market its products. Approximately 70% of 
Group sales are made in Germany and therefore Group results are sensitive to German legislation and government policies.
Directors’ Report
Directors’ Report
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17 Allergy Therapeutics plc Annual Report & Accounts 2008
Financial risks
Adequate funding may not be available to the Group, either through reserves or external partners for the advancement of clinical trials, 
manufacturing and marketing. Failure to obtain further funding may lead to postponement or cancellation of programmes and a scale back of 
operations. The Board actively review the financial requirements of the Group on a regular basis to preserve a routine level of investment. Currency 
risk is regularly reviewed and currency hedging is initiated when and where appropriate.
Financial risk management objectives and policies
Note 23 in the Notes to the Financial Statements gives details of the Company’s objectives and policies for risk management of financial instruments.
Development and performance of the Company’s business during the financial year
Pollinex Quattro, the Group’s flagship product, continued to sell well with sales increasing by 25% over the previous year. In R&D, the Phase III Pollinex 
Quattro Grass trial was the largest ever allergy study performed, providing encouraging results.
Position of the Company’s business at the end of the year
The implementation of commercial and marketing initiatives across all territories has helped to maintain and strengthen the Group’s robust, profitable 
core business. Successful Phase III results for Pollinex Quattro Grass will form the basis of a submission for registrations within Europe allowing the 
Group to focus on European markets and further strengthen its core business. However, the Group’s R&D programme is well-placed to continue US 
trials once the clinical hold is lifted and partner funding has become available. 
Main trends and factors likely to affect the future development performance and position of the Company’s business
Allergy remains a fast growing market with largely unmet market needs. The allergy ‘epidemic’ continues to grow and it is increasingly recognised 
that for many suffering from hayfever, it is far from being a trivial matter. There are currently very few competitors in the niche market in which the 
Group performs with none at such advanced stages of product development. The Board is confident in achieving European registration for Pollinex 
Quattro Grass following its successful Phase III trial and expects further expansion of product sales worldwide.
Environmental matters
The Board is committed to minimising the Group’s impact on the environment and ensuring compliance with environmental legislation. The  
Board considers that its activities have a low environmental impact. The Group strives to ensure that all emissions including the disposal of gaseous, 
liquid and solid waste products are controlled in accordance with applicable legislation and regulations. Disposal of hazardous waste is handled by 
specialist agencies. 
 
Employees
The Group currently employs over 350 people in seven countries and is committed to achieving equality of opportunity in all employment practices. A 
thorough review of all employees is performed annually to identify and promote areas that require development and growth; feedback is encouraged 
and sought. Staff are motivated by performance related incentives, which help to attract and retain the right people, and are encouraged to achieve 
business targets through market-rate pay, performance based bonuses and LTIPs. The Board is committed to the retaining of staff as a high priority 
for the Group and implementing well balanced, challenging incentives makes this possible. Training and development appropriate to individual and 
business needs is offered and remuneration for professional development is considered on a case by case basis.
Information about persons with whom the Company has contractual or other arrangements which are essential to the business  
of the Company
The Company uses consultants on a limited contractual basis and where needs arise fills posts with full time qualified personnel.
Directors and Directors’ interests
The Directors who held office during the period were as follows:
 Date of appointment
Ignace Goethals Non-executive Chairman 8 September 2004
Keith Carter Chief Executive Officer 1 July 2004
Christian Grätz Market Operations Director 8 September 2004
Thomas Holdich R&D Director  8 September 2004
Ian Postlethwaite Finance Director 1 July 2004
Stephen Smith Non-executive Director 8 September 2004
Virinder Nohria Non-executive Director 1 November 2005
The dates of appointment above refer to appointment as Directors of Allergy Therapeutics plc. All the Directors, with the exception of Dr Nohria, were 
previously Directors of Allergy Therapeutics (Holdings) Ltd.
Mr Ignace Goethals and Dr Christian Grätz retire by rotation in accordance with the Articles of Association and, being eligible, offer themselves for  
re-election at the forthcoming Annual General Meeting.
Directors’ Report
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The Directors’ who held office at the end of the financial year had the following interests in the ordinary shares of the Company:
 
    
|
 At beginning of year: 
|
 At end of year:
     Ordinary   Ordinary 
Name     Shares Options+LTIPs Shares Options+LTIPs
Ignace Goethals*     1,797,912 1,150,000 1,897,912 1,150,000
Keith Carter*     2,597,669 2,492,500 3,172,669 1,862,654
Christian Grätz     404,658 2,581,000 510,658 2,539,986
Thomas Holdich     – 655,000 – 698,471
Ian Postlethwaite     – 3,875,000 – 3,844,690
Stephen Smith     6,513 900,000 6,513 900,000
Virinder Nohria     5,211 100,000 5,211 100,000
* All or part are shares held in trust of which the Director is a beneficiary.
 
Directors’ indemnity
The Directors and officers of the Company are insured against any claims arising against them for any wrongful act in their capacity as a Director, 
officer or employee of the Company, subject to the terms and conditions of the policy.
Substantial shareholders
At 6 September 2008 the Company had been notified of the following major interests, each representing 3% or more of the existing issued ordinary 
share capital:
       Ordinary  
Shareholder       shares % held
Fidelity International Limited       12,140,577 14.81
Smithkline Beecham Biologicals Manufacturing S.A       10,118,748 12.35
M&G Investment Management       5,000,000 6.10
Invesco       4,162,645 5.08
Dr Piyush Patel       3,600,000 4.39
Keith Carter (including shares held by APIC Trustees Limited)*      3,172,669 3.87
Universities Staff Superannuation Fund       2,907,260 3.55
Axa Framlington Investment Management       2,679,554 3.27
Spark Ventures       2,674,195 3.26
Hermes Pensions Management Limited       2,511,761 3.06
* The beneficiary of these shares is Keith Carter, Chief Executive Officer.
Changes to interest in own shares
During the year the Company allocated 740,378 shares out of the Employee Benefit Trust to satisfy share options that were exercised.
Corporate governance
The Company’s shares are listed on the Alternative Investment Market (‘AIM’) of the London Stock Exchange (‘LSE’). The Company is therefore subject 
to the AIM Admission Rules, February 2007 of the LSE (the ‘Rules’) and is consequently not required to comply with the best practice corporate 
governance provisions contained within the Combined Code-June 2006 (the ‘Code’) appended to the Listing Rules of the Financial Services Authority. 
The Board
The Board is led by the Chairman and comprises the Chief Executive Officer, the Finance Director, two further executive Directors and two Non-
executive Directors. Biographical details of all Board members are shown on page 13. The roles of Chairman, who is Non-executive, and Chief 
Executive Officer are separate. The Directors feel that given the current size of the Company, it is not appropriate to appoint more than three Non-
executive Directors and the roles of Company Secretary and Finance Director are not deemed necessary to be separated. All Directors have direct 
access to the services and advice of the Company Secretary and to external independent professional advice at the expense of the Company.
The Board has a formal schedule of matters specifically reserved to it for decision at Board meetings. This covers strategy and management, 
financial reporting and controls, internal controls, major contracts, external communications with investors, executive committee appointments and 
remuneration, appropriate delegation of authority, corporate governance matters and appropriate policies for key areas including health and safety, 
corporate social responsibility and the environment.
Directors’ Report continued
Directors’ Report
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The Board delegates certain other responsibilities to committees, details of which are set out below.
 
Board Committees
The Group has an Audit Committee and a Remuneration Committee with formally delegated duties and responsibilities. The chairman of each 
committee reports directly to the Board. The Board considers that, because of its current size, it is not appropriate to have a separate Nominations 
Committee and reserves for itself the responsibility for the appointment of new Directors under the leadership of the Non-executive Chairman.
The Audit Committee, with written terms of reference, comprises Stephen Smith (Chairman) and Ignace Goethals. It meets at least twice each year 
and is responsible for ensuring that the financial performance of the Group is properly reported and monitored, meeting with the auditors and 
reviewing the reports from the auditors relating to the financial statements.
The Remuneration Committee, also with written terms of reference, comprises Stephen Smith (Chairman), Ignace Goethals and Virinder Nohria. 
The Human Resources manager takes the minutes of the meeting and acts as an employee representative. It reviews the compensation policy and 
strategy for the Group as a whole and the scale and structure of the Executive Directors’ remuneration packages, including grants of share options 
and the terms of their service contracts. No Director takes part in the discussion of his own remuneration. It is also responsible for grant of options 
under the Group’s Long Term Share Incentive Plan.
Full details of Directors’ remuneration and a statement of the Company’s remuneration policy are set out in the Directors’ Remuneration Report on 
pages 22 to 24.
Internal control
The Board has ultimate responsibility for the system of internal control maintained by the Group. The system is designed to manage rather than 
eliminate risk. It can provide only reasonable and not absolute assurance against material misstatement or loss and includes the safeguarding of 
assets, the maintenance of proper accounting records, the reliability of financial information, compliance with appropriate legislation, regulation and 
best practice and the identification and management of business risk. The Company has an internal audit function, reporting directly to the Audit 
Committee, which carries out reviews periodically of the Company’s subsidiaries in the UK, Germany, Austria, Italy and Spain. The Group also has  
a budgeting and reporting system in place with results compared to budget, variance analysis and re-forecasting of projected results. 
Shareholder relations
The Group maintains a policy of open dialogue with all shareholders to ensure that the objectives of the Group are understood. The Chief Executive 
Officer, R&D Director and the Finance Director make regular presentations to stakeholders and discuss any areas of concern and meet regularly with 
analysts and major shareholders to provide updated information about the Group. Press releases, general information on the Group, shareholder 
presentations and investor information are to be accessed via the Group’s website, www.allergytherapeutics.com.
Engagement of auditors for the supply of non-audit services
It is the Company’s policy that it will only engage the Company’s auditor to supply other professional services to the Company and its subsidiary 
undertakings if it is satisfied that all the usual conditions of engagement and benchmarks are met. Any agreement to purchase services costing more 
than £10,000 per engagement must have the prior approval of the Audit Committee.
In determining the policy, the Audit Committee has taken into account relevant ethical guidance regarding the provision of non-audit services by 
the external audit firm and does not agree to the auditor providing a service if, having regard to the ethical guidance, the result is that the external 
auditor audits its own work, the external auditor makes management decisions for the Company, a mutuality of interest is created or the external 
auditor is put in the role of advocate for the Company.
 
Research and development
The Group will continue its policy of investment in research and development although this will be at a lower level of spend than that seen in 
previous years, in order to improve its competitive position in the market. In accordance with International Accounting Standards, during the year the 
Group expensed to the income statement £16.3 million (2007: £25.3 million) in the year ended 30 June 2008 on research and development. Further 
details on the Group’s research and development are included in the Chief Executive’s Review on pages 4 and 5.
Going concern
The Group incurred losses for the financial years ended 30 June 2007 and 2008 primarily as a consequence of its investment in research and 
development activities; these losses have been funded by equity issues, debt facilities and cash generated by the operating business. 
The Group has prepared detailed budgets, including cash flow projections, for the periods ending 30 June 2009 to 30 June 2011. These projections 
include assumptions on the trading performance of the operating business and the continued availability of the existing debt facilities. After making 
appropriate enquiries, which included a review of the annual budget, by considering the cash flow requirements for the foreseeable future and the 
effects of sales and other sensitivities on the Company’s funding plans, the Directors continue to believe that the Group will have adequate resources 
to continue in operational existence for the foreseeable future and accordingly have applied the going concern principle in drawing up the financial 
statements. In reaching this view, the Directors have considered and prioritised the actions that could be taken to offset the impact of any shortfall  
in operating performance.
Directors’ Report
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20 Allergy Therapeutics plc Annual Report & Accounts 2008
Market value of land and buildings
Whilst the market values of some properties differ from book values, the Directors believe that the differences are not material.
Creditors’ payment policy and practice
The Group agrees payment terms with suppliers when it enters into contracts for the purchase of goods or services and seeks to abide by those terms 
when it is satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions. The number of trade 
creditor days at 30 June 2008 was 28 days (2007: 48 days). 
Dividend
The Company is unable to declare a dividend.
Employment policies
Equal opportunities
The Group is committed to providing equal opportunities in employment irrespective of background, age, sexual orientation, religion, gender, 
nationality, marital status or disability. Our aim is to attract the best people in the industry and we believe in maximising every employee’s potential. 
The Group does not tolerate any harassment or discrimination.
Disabled people
The Group, in considering applications for employment from disabled people, seeks to ensure that fair consideration is given to the abilities and 
aptitudes of the applicant while having regard to the requirements of the job for which he or she has applied. Employees who become unable to 
carry out the requirements of the job for which they have been employed are given individual consideration and, depending on the nature, severity 
and duration of the disability, may be considered for alternative work.
Communication
The Group has an open communication policy with its employees. Regular communication on the strategy, plans and performance of the Group is 
undertaken and reinforced by site meetings of staff as well as briefings by Directors and line management. In the UK, employees have access to 
Company information on the intranet. Information about the Group is also available on the internet at www.allergytherapeutics.com.
 
Health & Safety
The Group is committed in providing a safe environment for its employees and others who are engaged in or may be impacted by the Group’s 
operations and considers health and safety a priority. Policies relating to Health & Safety are set out on the Group’s Intranet and Staff Handbook. 
Procedures are monitored and improvements identified through periodic audits and safety inspections. The Group’s Health and Safety Committee 
meets regularly to discuss issues and promote good practice with Health & Safety Officers promoting and monitoring safe working conditions.
Statement of Directors’ responsibilities – Group financial statements
The Directors are responsible for preparing the Annual Report and the Group financial statements in accordance with applicable United Kingdom law 
and those International Financial Reporting Standards as adopted by the European Union.
Company law requires the Directors to prepare financial statements for each financial year which present fairly the financial position of the Group and 
the financial performance and cash flows of the Group for that period. In preparing those financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to understand the impact  
of particular transactions, other events and conditions on the entity’s financial position and financial performance; and
state that the Group has complied with IFRSs, subject to any material departures disclosed and explained in the financial statements.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the 
Company and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding 
the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 
Statement of Directors’ responsibilities – Company financial statements
The Directors are responsible for preparing the Company financial statements in accordance with applicable United Kingdom law and regulations.
Company law requires the Directors to prepare financial statements in accordance with United Kingdom Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of 
affairs of the Company and of the profit or loss of the Company for that period. In preparing those financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent; and
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the  
financial statements.
ü
ü
ü
ü
ü
ü
ü
Directors’ Report continued
Directors’ Report
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21 Allergy Therapeutics plc Annual Report & Accounts 2008
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the 
Company and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding 
the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 
In so far as the Directors are aware:
there is no relevant audit information of which the Company’s auditors are unaware; and
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that 
the auditors are aware of that information.
The Directors are responsible for ensuring compliance with the AIM rules.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. 
Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in  
other jurisdictions.
Auditors
Grant Thornton UK LLP offer themselves for reappointment as auditors in accordance with section 388(1) of the Companies Act 1985. A resolution  
for their reappointment is to be proposed at the forthcoming Annual General Meeting.
By order of the Board on 22 September 2008.
Ian Postlethwaite
Company Secretary
ü
ü
Directors’ Report
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22 Allergy Therapeutics plc Annual Report & Accounts 2008
The Remuneration Committee
The Remuneration Committee comprises Stephen Smith (Chairman), Ignace Goethals and Dr Virinder Nohria. The Committee held three meetings 
during the past financial year which were also attended by the Human Resources Manager. The principal purpose of the Committee is to determine 
and agree the Directors’ salary increases, annual bonuses, scope of pension arrangements and any changes in benefits. In addition, the Committee 
also agrees the share-related compensation for the Directors and other executive management and other executive compensation matters. For the 
purpose of reaching appropriate decisions the Committee has used information from the Alan Jones & Associates ‘Pharmaceutical Salary Survey’, 
benchmarking reports from MM&K and Watson Wyatt Data Services and a sample taken from AIM listed pharmaceutical companies of similar size  
and value (the ‘Comparator Group’).
Remuneration policy
The Committee’s policy is to set remuneration packages for executive directors that are competitive with the market, allowing the Company to 
attract, motivate and retain executives of the highest calibre. Remuneration packages are designed to reward executives for performance via annual 
bonus payments and awards of share-related compensation, which together constitute a potentially significant proportion of the total remuneration 
opportunity.
The remuneration of executive directors comprises the following elements:
(i) Basic salary
Basic salary reflects the market rate for each position and the individual director’s experience and value to the business. Salaries are reviewed 
annually as at 1 October, taking into account personal performance, and are benchmarked against the Comparator Group.
(ii) Taxable benefits
Taxable benefits represent the provision of a car allowance and private medical insurance.
(iii) Share options
The share options granted to individual executive directors to date are disclosed later in this report and comprise grants made in prior years under 
previous approved and unapproved option schemes. Share options previously granted by Allergy Therapeutics (Holdings) Ltd were surrendered on  
5 October 2004 for share options in Allergy Therapeutics plc, on substantially the same terms.
(iv) Long Term Incentive Plan
During the year ended 30 June 2008 provisional shares were awarded to directors and senior management under the Allergy Therapeutics plc 2005 
Long Term Incentive Plan. Distribution of shares under the Plan is conditional on the Company’s performance over the 3-year Plan Cycle. The number 
of provisional shares awarded to executive directors under the Plan is shown in the Directors’ share option table.
(v) SAYE Plan
The 2005 SAYE Plan was open to all employees and full-time executive directors who had completed 12 months continuous service at the offer date. 
Share options were granted at a discount to the share price at the date of grant. The number of options granted to each participant is related to the 
amount which the participant has contracted to save over the 3-year term of the Plan. The number of share options granted to executive directors 
under the Plan is shown in the Directors’ share options table.
(vi) Bonus
In the case of the executive team the Company operates a performance-related cash bonus based upon individual performance and achievement of 
personal and corporate objectives. Annual bonus payments are capped under service contracts at 40% for Keith Carter and 30% for all other directors 
except Christian Grätz, whose bonus is uncapped. The bonus is determined and agreed by the Remuneration Committee in September each year for 
the preceding financial year. 
 
Directors’ Remuneration Report
Directors’ Remuneration Report
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23 Allergy Therapeutics plc Annual Report & Accounts 2008
(vii) Pension arrangements
The UK Company operates a defined-contribution Personal Pension scheme and currently makes pension contributions equal to 10% of salary  
for executive directors, with the exception of Keith Carter for whom the Company contributes 13% of salary. 
Christian Grätz is a member of the Bencard Allergie GmbH pension scheme in Germany. 
Service contracts
 
Executive Directors       Date of contract* Notice period
Keith Carter      1 November 2003 6 months
Ian Postlethwaite      7 May 2002 12 months
Christian Grätz      1 April 2001 12 months
Tom Holdich      2 August 2004 6 months
 
* The above dates refer to service contracts with Allergy Therapeutics (Holdings) Ltd and, for Christian Grätz, with Bencard Allergie GmbH. All the service contracts, except that of Christian Grätz, 
were amended on 5 October 2004 to reflect the change of employer to Allergy Therapeutics plc.
Non-executive Directors       Date of contract Notice period
Ignace Goethals      8 September 2004 3 months
Stephen Smith      8 September 2004 3 months
Virinder Nohria      1 November 2005 3 months
The above contracts for Ignace Goethals and Stephen Smith replaced previous service contracts in respect of non-executive director roles in the 
Group’s former holding Company.
Directors remuneration
Details of remuneration of those who served as directors during the year are set out below.
      
|
 Year ended 30 June 2007
 Basic Bonus for Taxable 
 salary the year benefits Fees Total Pension Total Pension 
 £ £ £ £ £ £ £ £
Keith Carter 173,000 – 11,170 – 184,170 22,490 201,221 21,483
Ian Postlethwaite 132,450 – 11,137 – 143,587 13,245 147,008 12,225
Christian Grätz 147,023 – 14,628 – 161,651 27,556 158,832 26,154
Tom Holdich 138,437 – 11,170 – 149,607 13,844 157,202 13,219
Ignace Goethals 40,000 – – – 40,000 – 40,000 –
Stephen Smith – – – 36,000 36,000 – 36,000 –
Virinder Nohria 38,000 – – – 38,000 – 34,500 –
Totals 668,910 – 48,105 36,000 753,015 77,135 774,763 73,081
Directors’ Remuneration Report
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Directors’ share options
 Options    Options 
 held at Options Options Options held at Subscription 
 1st July granted in exercised in lapsed in 30th June price 
 2007 the year the year the year 2008 (pence) Exercise date from Expiry date
Executive directors
Keith Carter 350,000 – – – 350,000 120.0 31/07/2002 31/07/2011
 750,000 – 575,000 – 175,000 5.0 18/12/2002 18/12/2012
 450,000 – – – 450,000 45.0 26/02/2005 26/02/2014
 600,000 – – 400,002 199,998 100.4 08/03/2008 08/03/2015
 *14,609 – – – 14,609 0.64 01/03/2009 01/09/2009
 **342,500 345,156 – – 687,656 – – –
Ian Postlethwaite 400,000 – – – 400,000 30.0 03/06/2002 03/06/2012
 1,000,000 – – – 1,000,000 0.1 02/10/2002 02/10/2012
 1,500,000 – – – 1,500,000 5.0 17/12/2002 17/12/2012
 450,000 – – – 450,000 45.0 26/02/2005 26/02/2014
 300,000 – – 200,001 99,999 100.4 03/03/2008 08/03/2015
 *14,609 – – – 14,609 0.64 01/03/2009 01/09/2009
 **225,000 169,691 – – 394,691 – – –
Christian Grätz 6,000 – 6,000 – – 0.1 04/10/2004 20/10/2010
 200,000 – – – 200,000 120.0 31/07/2002 31/07/2011
 1,500,000 – 100,000 – 1,400,000 5.0 18/12/2002 18/12/2012
 450,000 – – – 450,000 45.0 26/02/2005 26/02/2014
 200,000 – – 133,334 66,666 100.4 08/03/2008 08/03/2015
 **225,000 198,320 – – 423,320 – – –
Tom Holdich 222,222 – – – 222,222 45.0 02/08/2005 02/08/2014
 7,778 – – – 7,778 45.0 02/08/2005 02/08/2014
 200,000 – – 133,334 66,666 100.4 08/03/2008 08/03/2015
 **225,000 176,805 – – 401,805 – – –
Non-executive directors
Ignace Goethals 1,000,000 – – – 1,000,000 5.0 18/12/2002 18/12/2012
 150,000 – – – 150,000 45.0 26/02/2005 26/02/2014
Stephen Smith 750,000 – – – 750,000 5.0 18/12/2002 18/12/2012
 150,000 – – – 150,000 45.0 26/02/2005 26/02/2014
Virinder Nohria 100,000 – – – 100,000 45.0 15/12/2003 15/12/2013
Totals 11,782,718 889,972 681,000 866,671 11,125,019
* SAYE Scheme
** Long Term Incentive Plan
The aggregate amount of gains made by Directors upon the exercise of share options in the year ended 30 June 2008 was £185,395 (year ended  
30 June 2007 £Nil)
At 30 June 2008 the London Stock Exchange market value of shares was 28p per share. The range of values during the period from 1 July 2007  
to 30 June 2008 was 25p to 119.5p per share.
Stephen Smith
Chairman, Remuneration Committee
22 September 2008
Directors’ Remuneration Report continued
Directors’ Remuneration Report
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We have audited the Group financial statements of Allergy Therapeutics plc for the period ended 30 June 2008 which comprise the consolidated 
income statement, the consolidated balance sheet, the consolidated statement of recognised income and expense, the consolidated cash flow 
statement and notes 1 to 33. These Group financial statements have been prepared under the accounting policies set out therein.
 
We have reported separately on the parent Company financial statements of Allergy Therapeutics plc for the period ended 30 June 2008.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been 
undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the Group financial statements in accordance with United Kingdom law and 
International Financial Reporting Standards (IFRSs) as adopted by the European Union are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the Group financial statements in accordance with relevant legal and regulatory requirements and International Standards 
on Auditing (UK and Ireland).
We report to you our opinion as to whether the Group financial statements give a true and fair view and whether the Group financial statements have 
been properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in the Report 
of the Directors is consistent with the financial statements. The information given in the Report of the Directors includes that specific information 
presented in the Chairman’s Report, Chief Executive’s Review, and the Financial Review that is cross referred from the Business Review section of the 
Report of the Directors.
In addition we report to you if, in our opinion, we have not received all the information and explanations we require for our audit, or if information 
specified by law regarding directors’ remuneration and other transactions is not disclosed. 
We read other information contained in the Annual Report and consider whether it is consistent with the audited Group financial statements. The 
other information comprises only the Chairman’s Report, Chief Executive’s Review, Financial Review, Report of the Directors and the Directors’ 
Remuneration Report. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies 
with the Group financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit 
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the Group financial statements. It also includes an 
assessment of the significant estimates and judgments made by the Directors in the preparation of the Group financial statements, and of whether 
the accounting policies are appropriate to the Group’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us  
with sufficient evidence to give reasonable assurance that the Group financial statements are free from material misstatement, whether caused by 
fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the Group 
financial statements.
 
Opinion
In our opinion:
the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the Group’s 
affairs as at 30 June 2008 and of its loss for the year then ended;
the Group financial statements have been properly prepared in accordance with the Companies Act 1985; and 
the information given in the Report of the Directors is consistent with the financial statements.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
Gatwick
22 September 2008
 
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Report of the Independent Auditor to the Members of  
Allergy Therapeutics plc
Report of the Independent Auditor
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26 Allergy Therapeutics plc Annual Report & Accounts 2008
     Year to Year to Year to Year to 
     30 June 30 June 30 June 30 June 
     2008 2008 2007 2007 
    Note £’000 £’000 £’000 £’000
Revenue    3  31,022  25,742
Cost of sales      (10,865)  (10,068)
Gross profit      20,157  15,674
Distribution costs      (12,852)  (11,312)
 Administration expenses – other     (6,640)  (5,326)
 Research and development costs     (16,300)  (25,343)
Administration expenses      (22,940)  (30,669)
Other income      42  32
Operating loss      (15,593)  (26,275)
Finance income    9  201  647
Finance expense    8  (4,852)  (131)
Loss before tax      (20,244)  (25,759)
Income tax    10  (53)  2,503
Loss for the period    28  (20,297)  (23,256)
Loss per share
Basic & diluted (pence per share)    12  (24.8p)  (28.4p)
Consolidated Income Statement
for the year ended 30 June 2008
Consolidated Income Statement
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27 Allergy Therapeutics plc Annual Report & Accounts 2008
       30 June 30 June 
       2008 2007 
      Note £’000 £’000
Assets
Non-current assets
Property, plant and equipment      15 6,883 5,486
Intangible assets – Goodwill      13 2,468 2,295
Intangible assets – Other      14 1,073 1,159
Investments      16 1,400 1,011
Derivative financial instruments      23 42 –
Total non-current assets       11,866 9,951
Current assets
Trade and other receivables      18 3,199 3,373
Derivative financial instruments      23 3 63
Inventories      17 5,817 4,911
Cash and cash equivalents      19 2,298 5,696
Total current assets       11,317 14,043
Total assets       23,183 23,994
Liabilities
Current liabilities
Trade and other payables      20 (4,760) (10,802)
Current borrowings      21 (2,422) –
Derivative financial instruments      23 (923) (62)
Total current liabilities       (8,105) (10,864)
Net current assets       3,212 3,179
Non current liabilities
Retirement benefit obligation      25 (2,324) (2,182)
Non current borrowings      21 (23,413) (2,161)
Derivative financial instruments      23 (382) –
Non current provisions      22 (249) (191)
Total non current liabilities       (26,368) (4,534)
Total liabilities       (34,473) (15,398)
Net (liabilities)/assets       (11,290) 8,596
Equity
Capital and reserves
Issued capital      26 92 92
Share premium      28 33,173 33,173
Merger reserve – shares issued by subsidiary      28 40,128 40,128
Reserve – shares held by EBT      28 (1) (36)
Reserve – share based payments      28 1,031 675
Revaluation reserve      28 165 226
Foreign exchange reserve      28 (628) (133)
Retained earnings      28 (85,250) (65,529)
Total equity       (11,290) 8,596
These financial statements were approved by the Board of Directors on 22 September 2008 and were signed on its behalf by:
K Carter  I Postlethwaite
Chief Executive Officer Finance Director
Consolidated Balance Sheet
Consolidated Balance Sheet
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       Year to Year to 
       30 June 30 June 
       2008 2007 
       £’000 £’000
Loss for the period       (20,297) (23,256) 
Actuarial gain on defined benefit pension scheme       576 133
Exchange differences on translation of foreign operations       (495) (133)
Revaluation (losses)/gains       (61) 163
Total recognised income and (expense)       (20,277) (23,093)
Consolidated Statement of Recognised Income and Expense
Consolidated Statement of Recognised 
Income and Expense
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       Year to Year to 
       30 June 30 June 
       2008 2007 
      Note £’000 £’000
Cash flows from operating activities
Loss before tax       (20,244) (25,759)
Adjustments for:
Foreign exchange gain      28 (495) (133)
Finance income      9 (201) (647)
Finance expense      8 1,972 131
Revaluation loss on loan      8 2,880 0
Non cash movements on defined benefit pension plan       158 140
Depreciation and amortisation      14,15 1,159 955
Charge for share based payments       356 369
Financial derivative instruments       1,261 (40)
Disposal of property, plant and equipment       (1) 22
Decrease in trade and other receivables      18 174 204
Increase in inventories      17 (906) (1,260)
(Decrease)/increase in trade and other payables       (5,246) 5,321
Net cash used in operations       (19,133) (20,697)
Interest paid       (136) (5)
Income tax (paid)/refunded      10 (53) 2,503
Net cash used in operating activities       (19,322) (18,199)
Cash flows from investing activities
Interest received       201 647
Investments      16 (256) (191)
Payments for intangible assets       (151) (291)
Payments for property plant and equipment       (2,472) (2,818)
Net cash used in investing activities       (2,678) (2,653)
Cash flows from financing activities
Proceeds from issue of equity shares      28 35 24
Net proceeds from borrowings       20,411 3,342
Bank loan fees and interest paid       (1,844) (678)
Net cash generated by financing activities       18,602 2,688
Net decrease in cash and cash equivalents       (3,398) (18,164)
Cash and cash equivalents at the start of the period       5,696 23,860
Cash and cash equivalents at the end of the period      19 2,298 5,696
Consolidated Cash Flow Statement
Consolidated Cash Flow Statement
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1. Basis Of Preparation
First year reporting under IFRS
The Group’s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) in issue as adopted by the 
European Union (‘EU’) and applied in accordance with the Companies Act 1985. This is the first annual reporting date at which we are required to use 
IFRS adopted by the EU. 
Allergy Therapeutics plc’s financial statements were prepared in accordance with United Kingdom Accounting Standards (United Kingdom Generally 
Accepted Accounting Practice) until 30 June 2007. The transition date to IFRS for the Group was 1 July 2006. The comparative figures in respect of the 
year ended 30 June 2007 have been restated to reflect changes in accounting policies as a result of adoption of IFRS. The disclosures required by 
IFRS 1 concerning the transition from UK GAAP to IFRS are given in the reconciliation schedules, presented and explained in note 33.
The consolidated financial statements have been prepared under the historical cost convention except for derivative financial instruments that have 
been measured at fair value.
Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Group 
in the 30 June 2008 financial statements
At the date of authorisation of these financial statements, certain new Standards, amendments and interpretations to existing standards have 
been published but are not yet effective. The Group has not adopted any of these pronouncements early. The new Standards, amendments and 
Interpretations that are expected to be relevant to the Group’s financial statements are as follows:
IAS 1 Presentation of Financial Statements (Revised 2007) (effective for reporting periods beginning on or after 1 January 2009)
This amendment affects the presentation of owner changes in equity and introduces a statement of comprehensive income. Preparers will have the 
option of presenting items of income and expense and components of other comprehensive income either in a single statement of comprehensive 
income with subtotals, or in two separate statements (a separate income statement followed by a statement of other comprehensive income). 
This amendment does not affect the financial position or results of the Group but will give rise to additional disclosures. Management is currently 
assessing the detailed impact of this amendment on the Group’s financial statements.
IAS 23 (Revised) Borrowing Costs (effective for accounting periods beginning on or after 1 January 2009)
The option to recognise immediately, as an expense, the borrowing costs that relate to assets that take a substantial period of time to get ready for 
use or sale is removed. All borrowing costs thus arising must therefore be capitalised. Management is currently assessing the detailed impact of this 
amendment on the Group’s financial statements.
IFRS 3 Business Combinations (Revised 2008) and IAS 27 Consolidated and Separate Financial Statements (Revised 2008) (effective for 
reporting periods beginning on or after 1 July 2009)
The revised Standards introduce major changes to the accounting treatment for business combinations, transactions with non-controlling interests  
(a new term for minority interests) and a loss of control of a subsidiary. Management are currently assessing the detailed impact of this amendment 
on the Group’s financial statements.
IFRS 8 Operating segments (effective for reporting periods beginning on or after 1 January 2009)
This IFRS specifies how an entity should report information about its operating segments in its financial statements. Generally, financial information is 
required to be reported on the same basis as is used internally for evaluating operating segment performance and deciding how to allocate resources 
to operating segments. Implementation of this standard is expected to increase the number of reportable segments as well as the manner in which 
the segments are reported. i.e in a manner that is consistent with the internal reporting provided to the chief operating decision-maker. As goodwill is 
allocated to groups of cash generating units based on segment level, the change will also require the reallocation of goodwill to the newly identified 
operating segments. Management does not anticipate that this will result in any material impairment of goodwill.
IFRIC 14 – IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (effective 1 January 2008)
This IFRIC addresses the interaction between minimum funding requirements (which are commonly imposed by laws and regulations in some 
jurisdictions) and the measurement of a defined benefit asset. Management are currently assessing the detailed impact of this amendment on the 
Group’s financial statements.
IFRS 2 amendment to share based payments.
Management are currently assessing the detailed impact of this amendment on the Group’s financial statements. 
Management anticipate that all the above pronouncements will be adopted in the Group’s financial statements for the period beginning  
1 January 2009.
Other new Standards and Interpretations have been issued but are not expected to have a material impact on the Group’s financial statements.
Notes to the Financial Statements
Notes to the Financial Statements
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1. Basis Of Preparation continued
Going concern
The Group incurred losses for the financial years ended 2007 and 2008 primarily as a consequence of its investment in research and development 
activities; these losses have been funded by equity issues, debt facilities and cash generated by the operating business. 
The Group has prepared detailed budgets, including cash flow projections, for the periods ending 30 June 2009 to 30 June 2011. These projections 
include assumptions on the trading performance of the operating business and the continued availability of the existing debt facilities. After making 
appropriate enquiries, which included a review of the annual budget, by considering the cash flow requirements for the foreseeable future and the 
effects of sales and other sensitivities on the Company’s funding plans, the Directors continue to believe that the Group will have adequate resources 
to continue in operational existence for the foreseeable future and accordingly have applied the going concern principle in drawing up the financial 
statements. In reaching this view, the Directors have considered and prioritised the actions that could be taken to offset the impact of any shortfall  
in operating performance.
2. Accounting policies
Consolidation
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies, generally accompanying a 
shareholding of over one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible 
are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is 
transferred to the Group. They are deconsolidated on the date control ceases.
The Group uses the purchase method of accounting for the acquisition of a subsidiary. The cost of an acquisition is measured by the fair value of the 
assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. 
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at 
the acquisition date irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the Group’s share of 
the identifiable net assets acquired is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of the subsidiary 
acquired the difference is recognised directly in the income statement.
Inter-company transactions, balances and unrealised gains and losses on transactions between Group companies are eliminated except for unrealised 
losses if they show evidence of impairment.
Goodwill
Goodwill arising from business combinations is the difference between the fair value of the consideration paid and the fair value of the assets  
and liabilities and contingent liabilities acquired. It is initially recognised as an intangible asset at cost and is subject to impairment testing on an 
annual basis or more frequently if circumstances indicate that the asset may have been impaired. Details of impairment testing are described  
in the accounting policies. 
Intangible assets 
Acquired as part of a business combination
Intangible assets acquired in a business combination are identified and recognised separately from goodwill where they satisfy the definition of  
an intangible asset and their fair values can be measured reliably. The cost of such intangible assets is their fair value at the acquisition date.
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and 
accumulated impairment losses.
Internally generated intangible assets
An internally generated intangible asset arising from development (or the development phase) of an internal project is recognised if, and only if,  
all of the following have been demonstrated:
the technical feasibility of completing the intangible asset so that it will be available for use or sale
the intention to complete the intangible asset and use or sell it
the ability to use or sell the intangible asset
how the intangible asset will generate probable future economic benefits
the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset
the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date when the intangible 
asset first meets the recognition criteria listed above. Where no internally generated intangible asset can be recognised, research and development 
expenditure is charged to profit or loss in the period in which it is incurred.
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Notes to the Financial Statements
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32 Allergy Therapeutics plc Annual Report & Accounts 2008
2. Accounting policies continued
Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation and accumulated 
impairment losses. Amortisation of these assets is calculated on a straight line basis over the useful economic life using the following annual rates: 
Manufacturing know-how        15 years
Non-competing know-how        4 years
Other intangibles        15 years
Computer software        7 years
These periods were selected to reflect the various assets’ useful economic lives to the Group.
The cost of amortising intangible assets is included within administration costs on the consolidated income statement.
Segmental reporting 
A business segment is a group of assets and operations engaged in production that is subject to risks and returns that are different from those of 
other business segments. A geographical segment is engaged in production within a particular economic environment that is different from that  
in segments operating in other economic environments.
The Group’s one principal activity is the research, development, manufacturing, marketing and sales of allergy treating drugs. This forms the single 
business stream and primary reporting segment. The Group’s secondary reporting segment is geographical and is based both on customer location 
and country of origin.
Foreign currency translation
Functional and presentational currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment  
in which the entity operates (the functional currency). The Group’s presentational currency is Sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign 
exchange gains and losses resulting from the settlement of such transactions and from the translation at reporting period end exchange rates of 
monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.
Group companies
The results and financial position of all Group entities that have a functional currency different from the presentation currency are translated into the 
presentation currency as follows:
Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet;
Income and expenses for each income statement are translated at actual exchange rates or using an average rate as an approximation;
All resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign entities are taken to equity. The Group has taken 
advantage of the exemption in IFRS 1 which allows all foreign exchange differences on consolidation to be set at zero at transition and the foreign 
exchange reserve therefore only shows post transition foreign exchange differences.
 
Income recognition
Revenue is measured by reference to the fair value of consideration received or receivable by the Group for goods supplied and services provided,  
net of statutory rebates paid in Germany and excluding value added tax. Revenue is recognised upon the performance of services or transfer of risk  
to the customer. 
Sale of goods
Revenue from the sale of goods is recognised when all the following conditions have been satisfied:
the Group has transferred to the buyer the significant risks and rewards of ownership of the goods which is generally when the customer has 
physically received the goods.
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the  
goods sold which is again when the customer has physically received the goods.
the amount of revenue can be measured reliably.
it is probable that the economic benefits associated with the transaction will flow to the Group, and 
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Royalties
Royalties are recognised on an accruals basis in accordance with the substance of the relevant agreement.
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Notes to the Financial Statements continued
Notes to the Financial Statements
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33 Allergy Therapeutics plc Annual Report & Accounts 2008
2. Accounting policies continued
Milestones
Revenues with performance milestones are received from our licensee in Canada and are treated as royalties. These are recognised on the 
satisfactory occurrence of critical events as pre-defined in the relevant agreement.
Expenditure recognition
Operating expenses are recognised in the income statement upon utilisation of the service or at the date of their origin. 
Borrowing costs
All borrowing costs are expensed to the income statement on an accruals basis using the effective interest method. 
 
Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Provision for 
depreciation of all tangible assets of the Group is made over their estimated useful lives, principally using the following annual rates:
Buildings        10 years
Computer equipment        3–7 years
Motor vehicles        4 years
Fixtures and fittings        5–10 years
Plant and equipment        5–10 years
Asset residual values and useful lives are reviewed annually and amended as necessary. Assets are reviewed for impairment whenever events or 
changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. An asset’s carrying amount is written down 
immediately to its recoverable amount if the asset’s carrying amount exceeds the higher of the asset’s fair value less costs to sell or value in use.
Assets under course of construction are capitalised but not depreciated. Once the asset is ready for use, it is transferred to the relevant heading and 
depreciated accordingly.
Impairment
The Group’s goodwill, other intangible assets and property plant & equipment are subject to impairment testing.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash 
generating units). Goodwill is allocated to those cash generating units that are expected to benefit from synergies of the related business combination 
and represent the lowest level within the Group at which management controls the related cash flows. 
Individual assets or cash generating units that include goodwill with an indefinite useful life or those not yet available for use are tested for 
impairment at least annually. All other individual assets or cash generating units are tested for impairment whenever events or changes in 
circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the assets or cash generating units carrying amount exceeds its recoverable amount.  
The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell and value in use, based on an internal discounted 
cash flow evaluation. Impairment losses recognised for cash generating units, to which goodwill has been allocated, are credited initially to the 
carrying amount of goodwill. Any remaining impairment loss is charged pro rata to the other assets in the cash generating unit. With the exception  
of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. 
Inventories
Inventory is carried at the lower of cost or net realisable value. The costs of raw materials, consumables, work in progress and finished goods are 
measured by means of weighted average cost using standard costing techniques. Cost of finished goods comprises direct production costs such as 
raw materials, consumables, utilities and labour, and production overheads such as employee costs, depreciation, maintenance and indirect factory 
costs. Standard costs are reviewed regularly in order to ensure relevant measures of utilisation, production lead time and appropriate levels of 
manufacturing expense are reflected in the standards.
Net realisable value is calculated based on the revenue from sale in the normal course of business less any costs to sell.
Leases
Operating lease rentals are charged to the income statement over the term of the lease. There are no finance leases.
Notes to the Financial Statements
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34 Allergy Therapeutics plc Annual Report & Accounts 2008
2. Accounting policies continued
Financial assets
Financial assets consist of cash and other receivables. Financial assets are assigned to their different categories by management on initial recognition, 
depending on the contractual arrangements.
Cash and cash equivalents comprise cash on hand, demand deposits and overdrafts, together with other short-term, highly liquid investments that 
are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
All financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument and are initially recognised at fair 
value plus transaction costs, and subsequently at amortised cost.
Derecognition of financial assets occurs when the rights to receive cash flows from the investments expire or are transferred and substantially all of 
the risks and rewards of ownership have been transferred. An assessment for impairment is undertaken at least at each balance sheet date whether 
or not there is objective evidence that a financial asset or a group of financial assets is impaired.
Financial liabilities
The Group’s financial liabilities include bank loans, trade and other payables. 
Financial liabilities are recognised when the Group becomes a party to the contractual agreements of the instrument. All interest related charges are 
recognised as an expense in ‘Finance costs’ in the income statement.
Trade and other payables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
Borrowings comprise secured bank borrowings, and are initially recognised at the fair value of the consideration received net of issue costs associated 
with the borrowings. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective 
interest rate method.
Derivative financial instruments
The Group uses interest rate swaps, Euro forward contracts and Euro exchange swaps to manage the exposure to changes in interest and translation 
rates and these are classified as derivative financial instruments. All derivative financial instruments are initially measured at fair value on acquisition 
and are subsequently restated to fair value at each reporting date. Any change in the fair value of the instruments is recognised in the Income 
Statement.
Equity
Equity comprises the following:
‘Issued capital’ represents the nominal value of equity shares that have been issued.
‘Share premium’ represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the 
share issue.
‘Merger reserve’ represents shares issued by the subsidiaries. 
‘Reserve – Shares held in EBT’ represent the shares acquired by a trust set up for the benefit of the Group’s employees. These shares are deducted 
from shareholders funds at the cost that the shares were acquired. The net proceeds received from the issue of these shares through the exercise 
of options are also recognised through this reserve. 
‘Share based payments reserve’ represents equity-settled share-based employee remuneration until such share options are exercised.
‘Revaluation reserve’ represents the revaluations of investment assets.
‘Foreign Exchange reserve’ represents the foreign currency translation differences that have occurred since the transition date. Exchange 
differences prior to this date are included within retained earnings.
‘Retained earnings’ represents retained profits and losses.
Equity is any contract which evidences a residual interest in the assets of the Group after deducting all its liabilities. 
Income taxes
Current income tax assets and liabilities comprise those obligations to fiscal authorities in the countries in which the Group carries out its operations. 
They are calculated according to the tax rates and tax laws applicable to the fiscal period and the country to which they relate. All changes to current 
tax liabilities are recognised as a component of tax expense in the income statement. 
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference 
between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of 
goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting 
profit. Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not provided if reversal of these temporary 
differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available  
to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.
ü
ü
ü
ü
ü
ü
ü
ü
Notes to the Financial Statements continued
Notes to the Financial Statements
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35 Allergy Therapeutics plc Annual Report & Accounts 2008
2. Accounting policies continued
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying 
deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated 
at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance 
sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to 
items that are charged or credited directly to equity (such as the revaluation of land) in which case the related deferred tax is also charged or credited 
directly to equity.
Defined Benefit Pension Scheme
Scheme assets are measured at fair values. Scheme liabilities are measured on an actuarial basis using the projected unit credit method and are 
discounted at appropriate high quality corporate bond rates that have terms to maturity approximating to the terms of the related liability. Appropriate 
adjustments are made for past service costs. Past service cost is recognised as an expense on a straight-line basis over the average period until the 
benefits become vested. To the extent that benefits are already vested the Group recognises past service cost immediately.
Actuarial gains and losses are recognised immediately through the statement of recognised income and expense (SORIE). The net surplus or deficit is 
presented with other net assets on the balance sheet. The related deferred tax is shown with other deferred tax balances. A surplus is recognised only 
to the extent that it is recoverable by the Group.
The current service cost, past service cost and costs from settlements and curtailments are charged against administrative expenses in the income 
statement. Interest on the scheme liabilities and the expected return on scheme assets are included in other finance costs. 
Short-term employee benefits, including holiday entitlement are included in current pension and other employee obligations at the undiscounted 
amount that the Group expects to pay as a result of the unused entitlement.
Investments
Investments relate to long-term insurance policies that cannot be directly deducted from the German pension obligation. These are recognised  
as a separate asset, rather than as a deduction in determining the defined benefit liability.
Provisions
Provisions are recognised when the present obligations arising from legal or constructive obligations resulting from past events, will probably lead  
to an outflow of economic resources from the Group which can be estimated reliably.
Provisions are measured at the present value of the estimated expenditure required to settle the present obligation, based on the most reliable 
evidence available at the balance sheet date.
All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
 
Share based employee compensation
The Group operates equity settled share based compensation plans for remuneration of its employees.
All employee services received in exchange for the grant of any share based compensation are measured at their fair values. These are indirectly 
determined by reference to the share option awarded. Their value is appraised at the grant date and excludes the impact of any non-market vesting 
conditions (e.g. profitability or sales growth targets).
All share based compensation is ultimately recognised as an expense in profit and loss with a corresponding credit to the share based payments 
reserve, net of deferred tax where applicable. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, 
based on the best available estimate of the number of shares options expected to vest. Non market vesting conditions are included in assumptions 
about the number of options that are expected to become exercisable. Estimates are subsequently revised if there is any indication that the number 
of share options expected to vest differs from previous estimates. No adjustment to expense recognised in prior periods is made if fewer share 
options ultimately are exercised than estimated.
Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, up to the nominal value of the shares issued 
are allocated to share capital with any excess being recorded as share premium.
Employee Benefit Trust
The financial statements include the assets and liabilities of a trust set up for the benefit of the Group’s employees. The employee benefit trust has 
acquired shares in the Company and these are deducted from the shareholders’ funds on the balance sheet at the cost of acquisition.
Notes to the Financial Statements
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36 Allergy Therapeutics plc Annual Report & Accounts 2008
2. Accounting policies continued
Use of accounting estimates and judgements
Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are 
based on management’s best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ 
from the amounts included in the financial statements. Information about such judgements and estimation is contained in the accounting policies 
and/or the notes to the financial statements and the key areas are summarised below:
Judgements in applying accounting policies
a) Identification of functional currencies requires analysis of the economic environments of the subsidiaries of the Group and the selection of the 
presentational currency must reflect the requirements of the users of those statements.
b) During the year the Group earned milestone payments to the value of £2,701k (2007: £1,250k). This has been recognised as revenue because  
it is considered that a significant milestone has been reached for which the earnings process, based on cumulative sales, has been completed.
c) Capitalisation of development costs requires analysis of the technical feasibility and commercial viability of the project concerned. Capitalisation  
of the costs will be made only where there is evidence that an economic benefit will accrue to the Group. To date no development costs have 
been capitalised and all costs have been expensed in the Income statement as research and development expenditure, £16.3 million  
(2007: £25.3 million)
Sources of estimation uncertainty
a) Depreciation rates are based on estimates of the useful lives and residual values of the assets involved.
b) Estimates of future profitability are required for the decision whether or not to create a deferred tax asset. 
c) Estimates are required as to asset carrying values and impairment charges.
d) Determining whether goodwill is impaired requires an estimation of the value in use of the cash generating unit to which the goodwill has been 
allocated. This value in use calculation requires an estimation of the future cash flows expected to arise from the cash generating unit and a 
suitable discount rate in order to calculate the present value.
 
3. Revenue
An analysis of revenue by category is set out in the table below:
       2008 2007 
       £’000 £’000
Sale of goods       26,476 22,745
Royalties       1,845 1,747
Milestones       2,701 1,250
       31,022 25,742
4. Segmental reporting
The Group’s sole principal activity is the research, development, manufacturing, marketing and sale of allergy treating pharmaceuticals. This forms  
the single business stream and primary reporting segment. 
The Group’s secondary reporting segments are based on geographical location of customers for the Group’s products. The following table provides 
a breakdown of the Group’s sales by geographical market irrespective of the origin of the products and are shown net of inter-segmental sales of 
£23,602k (2007: £20,825k):
       Year to Year to 
       30 June 30 June 
       2008 2007 
       £’000 £’000
Germany       20,596 17,069
Rest of Europe       6,763 6,505
North America       3,346 1,845
Asia       317 323 
       31,022 25,742
Notes to the Financial Statements continued
Notes to the Financial Statements
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37 Allergy Therapeutics plc Annual Report & Accounts 2008
4. Segmental reporting continued
The following table provides a breakdown of the Group’s sales by the country of origin of the products sold:
       Year to Year to 
       30 June 30 June 
       2008 2007 
       £’000 £’000
Germany       20,596 17,281
Rest of Europe       4,734 4,176
UK       5,692 4,285
       31,022 25,742
The following analysis shows the carrying value of the assets, excluding cash and cash equivalents, and the additions to those assets in each of  
the segments:
       Additions to property, 
     Carrying amount  plant & equipment 
    
|
 of segment assets 
|
 and intangible assets
     Year to Year to Year to Year to 
     30 June 30 June 30 June 30 June 
     2008 2007 2008 2007 
     £’000 £’000 £’000 £’000
Germany     3,511 2,753 96 54
Rest of Europe     1,539 1,387 19 46
UK     15,835 14,158 2,289 3,067
     20,885 18,298 2,404 3,167
5. Loss before tax
       2008 2007 
       £’000 £’000
Loss for the period has been arrived at after charging/(crediting): 
Foreign exchange loss       495 133
Depreciation and amortisation:
Depreciation of property plant and equipment (note 15)       909 731
Amortisation of intangible assets (note 14)       250 224
Research and development       16,300 25,343
Employee benefits expense:
Employee costs (Note 7)       14,092 12,357
Land and buildings held under operating leases       387 350
Other operating leases       448 382
Audit and non-audit services:
Fees payable to the Company’s auditor for the audit of the Group accounts     25 13
Fees payable to the Company’s auditor and its associates for other services:
The audit of the Company’s subsidiaries pursuant to legislation      97 79
Tax services       (6) 17
Other services pursuant to legislation       31 60
Share based payment expense (note 27)       356 369
6. Remuneration of key management personnel
       2008 2007 
       £’000 £’000
Salaries and short-term employee benefits       753 775
Post employment benefits – defined benefit plans       28 26
Post employment benefits – defined contribution plans       49 47
Share based payment       194 193
       1,024 1,041
Notes to the Financial Statements
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38 Allergy Therapeutics plc Annual Report & Accounts 2008
7. Employees 
       2008 2007 
       £’000 £’000
Employee costs:
Wages and salaries       11,611 10,015
Social security costs       1,713 1,553
Share based payments       356 369
Pension costs – defined benefit plans       204 243
Pension costs – defined contribution plans       208 177
       14,092 12,357
The average number of employees during the period was made up as follows: 
R&D, marketing and administration       126 124
Sales       69 61
Production       167 149
       362 334
8. Finance expense
       2008 2007 
       £’000 £’000
Interest on borrowing facility       1,724 0
Bank interest       120 29
Employee defined benefit scheme interest expense       128 102
Other charges       2,880 0
       4,852 131
Other charges represent the revaluation of the Euro borrowing facility
9. Finance income
       2008 2007 
       £’000 £’000
Bank interest       201 647
10. Income tax expense
       2008 2007 
       £’000 £’000
Current Tax: 
Corporation tax on loss for the period       – –
Prior period tax       – (2,503)
Overseas tax       53 –
Tax charge/(credit) for the period       53 (2,503)
The tax assessed for the period is lower than the standard rate of corporation tax as applied in the respective trading domains where the Group 
operates. The differences are explained below:
       2008 2007 
       £’000 £’000
Loss for the period before tax       (20,244) (25,759)
Loss for period multiplied by the respective standard rate of corporation tax applicable in each domain (average 30%).   (5,972) (7,728)
Effects of: 
Disallowable expenses       365 59
Capital allowances in excess of depreciation       (228) (139)
Other fixed asset timing differences, adjustments and movements      51 –
Tax loses (utilised)       (349) (215)
Allowances for R&D expenditure       (55) (75)
Tax losses not utilised       6,266 8,110
Adjustment for difference tax rates       32 –
Relief for shares acquired by employees and Directors       (57) (12)
Tax loss surrendered to R&D tax credit       – (2,503)
Tax charge/(credit) for the period       53 (2,503)
Notes to the Financial Statements continued
Notes to the Financial Statements
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39 Allergy Therapeutics plc Annual Report & Accounts 2008
11. Unrecognised deferred tax
     2008 2008 2007 2007 
     Deferred tax Deferred tax Deferred tax Deferred tax 
     assets liabilities assets liabilities 
     £’000 £’000 £’000 £’000
Non Current Assets
Property, plant and equipment     – (520) – (378)
Derivative financial instruments     258 – 19 –
Non Current Liabilities
Pension and other employee obligations     270 – 351 –
Derivative financial instruments     107 – – –
Unused tax losses     16,458 – 11,688 –
     17,093 (520) 12,058 (378)
Offset     (520) 520 (378) 378
Total     16,573 – 11,680 –
No deferred tax has been provided for in respect of these temporary differences.
There is also an unrecognised deferred tax asset in respect of share based payments for £Nil (2007: £950k).
12. Loss per share
       2008 2007 
       £’000 £’000
Loss for the period attributable to equity shareholders       (20,297) (23,256)
       2008 2007 
       Shares Shares 
       ‘000 ‘000
Issued ordinary shares at start of the period       81,951 81,951
Ordinary shares issued in the period       – –
Issued ordinary shares at end of the period       81,951 81,951
Weighted average number of shares in issue for the period.       81,951 81,951
Basic and diluted loss per share (pence)       (24.8p) (28.4p)
The diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per 
share and is therefore not dilutive under the terms of IAS 33.
13. Goodwill 
       2008 2007 
       £’000 £’000
At 1 July       2,295 2,326
Exchange difference       173 (31)
At 30 June       2,468 2,295
For the purposes of impairment testing of goodwill, the Directors recognise the Group’s Cash Generating units (‘CGU’) to be the following:
       2008 2007 
       £’000 £’000
Germany       2,468 2,295
The recoverable amount for the cash-generating unit above was determined based on a value-in-use calculation, covering a detailed three-year 
forecast of future cash flows using budgeted projections assuming a 12% discount rate reflecting the Group’s weighted average cost of capital.
The Group’s management’s key assumptions include sales growth, which has been determined based on past experience in this market. The Group’s 
management believes that this is the best available input for forecasting this mature market.
Apart from the considerations described in determining the value in use of the cash generating unit described above, the Group’s management is not 
currently aware of any other probable changes that would necessitate changes in its key estimates.
At each half-year end the Directors have reviewed the goodwill for possible impairment and concluded that no impairment provision is required.
Notes to the Financial Statements
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40 Allergy Therapeutics plc Annual Report & Accounts 2008
14. Intangible assets
    Manufacturing  Non-competing Other Computer 
    know-how know-how intangibles software Total 
    £’000 £’000 £’000 £’000 £’000
Cost
At 1 July 2006    1,000 3,046 960 788 5,794
Additions    – – – 291 291
Foreign exchange    – (68) (6) (13) (87)
At 30 June 2007    1,000 2,978 954 1,066 5,998
Additions    – – – 151 151
Foreign exchange    – 438 38 60 536
At 30 June 2008    1,000 3,416 992 1,277 6,685
Amortisation
At 1 July 2006    537 3,046 594 525 4,702
Charge for the year    63 – 52 109 224
Foreign exchange    – (68) (6) (13) (87)
At 30 June 2007    600 2,978 640 621 4,839
Charge for the year    67 – 51 132 250
Foreign exchange    – 438 36 49 523
At 30 June 2008    667 3,416 727 802 5,612
Net book value
At 1 July 2006    463 – 366 263 1,092
At 30 June 2007    400 – 314 445 1,159
At 30 June 2008    333 – 265 475 1,073
15. Property, plant and equipment
      Assets under Freehold 
  Plant &  Fixtures & Motor Computer course of land & 
  machinery  fittings vehicles equipment construction  buildings Total 
  £’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 July 2006  2,941 1,960 8 2,302 – 270 7,481
Additions  1,300 972 12 592 – – 2,876
Foreign exchange  (2) (10) – (5) – (7) (24)
Disposals  (60) (2) (4) (1,318) – – (1,384)
At 30 June 2007  4,179 2,920 16 1,571 – 263 8,949
Additions  424 420 – 228 1,182 – 2,254
Asset reclassification  (647) (7) – (267) 921 – –
Foreign exchange  14 76 – 14 – 46 150
Disposals  6 (3) – – – – 3
At 30 June 2008  3,976 3,406 16 1,546 2,103 309 11,356
Depreciation
At 1 July 2006  1,383 563 7 1,939 – 215 4,107
Charge for the year  272 292 2 134 – 31 731
Foreign exchange  (1) (5) – (2) – (6) (14)
Disposals  (38) (2) (4) (1,317) – – (1,361)
At 30 June 2007  1,616 848 5 754 – 240 3,463
Charge for the year  276 420 3 184 – 26 909
Foreign exchange  9 45 – 3 – 42 99
Disposals  5 (3) – – – – 2
At 30 June 2008  1,906 1,310 8 941 – 308 4,473
Net book value
At 1 July 2006  1,558 1,397 1 363 – 55 3,374
At 30 June 2007  2,563 2,072 11 817 – 23 5,486
At 30 June 2008  2,070 2,096 8 605 2,103 1 6,883
All assets are secured against the Company’s bank borrowings.
Notes to the Financial Statements continued
Notes to the Financial Statements
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41 Allergy Therapeutics plc Annual Report & Accounts 2008
16. Investments
The Group carries an insurance policy which is designed to contribute towards the obligation in respect of the defined benefit pension scheme.
 
       2008 2007 
       £’000 £’000
At 1 July       1,011 843
Additions       256 191
Gains/(losses) in the investment       133 (23)
       1,400 1,011
17. Inventories
       2008 2007 
       £’000 £’000
Raw materials and consumables       1,763 1,706
Work in progress       3,620 2,452
Finished goods       434 753
       5,817 4,911
18. Trade and other receivables
       2008 2007 
       £’000 £’000
Trade receivables       1,956 1,802
Other receivables       447 131
VAT       296 718
Prepayments       500 722
       3,199 3,373
All amounts due as shown above are short-term. The carrying value of trade receivables is considered a reasonable approximation of fair value. All 
trade and other receivables have been reviewed for indicators of impairment. Certain trade receivables were found to be impaired and a provision 
of £267k (2007: £57k) has been recorded accordingly. The impaired receivable has arisen due to the non-performance of a supplier to Allergy 
Therapeutics Italia s.r.l. where an amount of money collected on the Company’s behalf was not paid over.
In addition, some of the unimpaired trade receivables are past due as at the reporting date. The age of financial assets past due but not impaired  
is as follows: 
The following financial assets were overdue by: 
       2008 2007 
       £’000 £’000
Trade receivables
Not more than 3 months       494 463
More than 3 months but not more than 6 months       43 35
More than 6 months but not more than 1 year       229 70
More than one year       8 50
       774 618
19. Cash and cash equivalents
       2008 2007 
       £’000 £’000
Cash at bank and in hand       2,298 5,696
20. Trade and other payables
       2008 2007 
       £’000 £’000
Trade payables       2,312 4,612
Social security and other taxes       403 446
Other creditors       292 157
Accrued expenses and deferred income       1,753 5,587
       4,760 10,802
 
Notes to the Financial Statements
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42 Allergy Therapeutics plc Annual Report & Accounts 2008
21. Borrowings
       2008 2007 
       £’000 £’000
Due within one year
Facility borrowing       1,582 –
Short term loan       840 –
       2,422 –
Due after more than one year
Facility borrowing       22,444 2,161
Long term loan       969 –
       23,413 2,161
The facility borrowing is denominated in Euros and provided by Royal Bank of Scotland plc. The interest on the loan is a floating rate of Euribor plus 
2.75%. The loan is secured in favour of The Royal Bank of Scotland plc by means of a debenture over the Group’s assets, an Intellectual Property 
Rights Agreement with Bencard Allergie GmbH and share pledge agreements with Bencard Allergie GmbH, Allergy Therapeutics Italia s.r.l. and Allergy 
Therapeutics Iberica S.L
22. Provisions
The provision refers to a leaving indemnity reserve in Allergy Therapeutics Italia s.r.l. Under Italian law, alongside each monthly salary payment an 
amount is paid into this reserve for each employee. When the employee leaves the Company the accrued amount is paid to him in the form of a 
deferred salary payment.
        £’000
At 1 July 2007        191
Additions in year        58
At 30 June 2008        249
23. Financial instruments
Risk management
The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern whilst maximising the return to 
stakeholders through the effective management of liquid resources raised through share issues and facility loan arrangements. The IAS 39 categories 
of financial assets and liabilities included in the balance sheet and the headings under which they are shown are as follows:
 
Categories of financial instrument 
       2008 2007 
       £’000 £’000
Financial assets
Current
Fair value through profit and loss       3 63
Loans and receivables (including cash and cash equivalents)      4,997 8,347
Non current
Fair value through profit and loss       42 –
Loans and receivables (including cash and cash equivalents)      – –
       5,042 8,410
Financial liabilities
Current
At amortised cost (including borrowings and payables)       (6,779) (10,356)
Fair value through profit and loss       (923) (62)
Non current
At amortised cost (including borrowings and payables)       (23,662) (2,352)
Fair value through profit and loss       (382) –
       (31,746) (12,770)
Notes to the Financial Statements continued
Notes to the Financial Statements
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43 Allergy Therapeutics plc Annual Report & Accounts 2008
23. Financial instruments continued
Derivative financial instruments
The Group uses derivative financial instruments to mitigate the effects of exchange rate exposure through the use of forward exchange contracts  
and interest rate volatility through the use of interest rate swap arrangements.
The fair value is calculated by reference to market rates and supported by counterparty confirmation. 
Interest rate swap
Although management consider the interest rate swaps as an effective hedging tool they are not formally designated as such. They are arranged  
to convert 60% of the Company’s loan borrowings from floating to fixed rates.
Euro forward contracts
The Group has Euro forward contracts with its bank that are arranged for the sale of €29,309k to purchase GBP at an average blended rate of 1.3306 at 
future dates from July 2008 to March 2010.
Euro exchange swap
The Group has utilised a Euro exchange swap for the sale of €1,675k to purchase GBP at an average blended rate of 1.259, due for maturity  
in August 2008.
 
Derivative of financial instrument 
       2008 2007 
       £’000 £’000
Current assets
Derivative financial instruments
– Euro forward contracts – held for trading       – 63
– Euro exchange swap – held for trading       3 –
       3 63
Non current assets
Derivative financial instruments
– Interest rate swap – held for trading       42 –
Current liabilities
Derivative financial instruments
 – Euro forward contracts – held for trading       897 62
 – Interest rate swap – held for trading       26 –
       923 62
Non current liabilities
Derivative financial instruments
 – Euro forward contracts – held for trading       382 –
Foreign currency risk
The Group conducts most of its day to day financial activities in either the Euro, which is the functional currency of the majority of the active 
subsidiaries, or Sterling. In addition some costs are denominated in US dollars and Canadian dollars.
The Group carries bank balances in the following currencies:
       2008 2007 
       £’000 £’000
Sterling       1,812 478
Euro       (624) 1,113
US dollars       418 2,199
Canadian dollars       671 1,895
Slovak koruna       13 5
Polish zloty       8 6
       2,298 5,696
Notes to the Financial Statements
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44 Allergy Therapeutics plc Annual Report & Accounts 2008
23. Financial instruments continued
The risks resulting from transaction exposure are mitigated by the use of forward contracts which are managed to eliminate approximately 80%  
of the exposure on a 12 month basis. Foreign currency denominated financial assets and liabilities, translated into Sterling at closing rates, are  
as follows:
 2008 
|
 2007
   Sterling Euro Other Sterling Euro Other 
   £’000 £’000 £’000 £’000 £’000 £’000
Financial assets   2,698 1,192 1,110 1,376 2,891 4,143
Financial liabilities   (2,758) (4,944) – (4,261) (3,168) (2,989)
Short term exposure   (60) (3,752) 1,110 (2,885) (277) (1,154)
Financial assets   – 42 – – – –
Financial liabilities   (382) (23,662) – – (2,352) –
Long term exposure   (382) (23,620) – – (2,352) –
The following table illustrates the sensitivity of the net result for the year and the equity of the Group with regard to its financial assets and liabilities 
and the Euro to Sterling exchange rate. 
       2008 2007 
       £’000 £’000
If Sterling had strengthened against the Euro by 5%
Net results for the year       895 19
Equity       405 341
       1,300 360
If Sterling had weakened against the Euro by 5%
Net results for the year       (639) (19)
Equity       (448) (377)
       (1,087) (396)
Interest rate risk
The Group finances its operations through both equity fundraising and bank facilities. The main borrowing facility borrowing is at floating rates of 
interest with a hedge comprising an interest rate swap covering 60% of the total outstanding which converts floating to fixed rates of interest. The 
following table illustrates the sensitivity of the net result for the year and equity to possible changes in interest rates of + 1% and – 1%, with effect 
from the beginning of the year on the remaining element of borrowings. These changes are considered to be reasonable given the current market 
conditions and the calculations are based on the financial instruments held at each balance sheet date, all other variables being held constant:
 
    
|
 2008 
|
 2007
     £’000 £’000 £’000 £’000 
     + 1% – 1% + 1% – 1%
Net results for the year     (83) 83 (1) 1
Equity     – – – –
     (83) 83 (1) 1
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. In order to minimise 
this risk the Group endeavours only to deal with companies which are demonstrably creditworthy and this, together with the aggregate financial 
exposure, is continuously monitored. The maximum exposure to credit risk is the value of the outstanding amount.
Credit risk on cash and cash equivalents is considered to be small as the counterparties are all substantial banks with high credit ratings. The 
maximum exposure is the amount of the deposit.
Notes to the Financial Statements continued
Notes to the Financial Statements
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45 Allergy Therapeutics plc Annual Report & Accounts 2008
23. Financial instruments continued
Liquidity risk
The Group currently holds substantial cash balances to provide funding for research and production activity. Management continues to have the option 
to raise funding from the issue of equity shares and, more recently, has raised significant funding through a bank facility to ensure the Group remains 
able to meet its commitments as they fall due. As at 30 June 2008 the Group’s contractual maturities are summarised as follows:
 
Current liabilities 
    
|
 2008 
|
 2007
     £’000 £’000 £’000 £’000 
     Within 6  6 to 12 Within 6 6 to 12 
     months months months months
Borrowing Facility     – 2,422 – –
Trade payables     2,506 9 4,603 9
Other short term liabilities     2,245 – 6,190 –
Derivatives     555 368 55 7
     5,306 2,799 10,848 16
Non-current liabilities 
    
|
 2008 
|
 2007
     £’000 £’000 £’000 £’000 
     1 to 5  Later than 5 1 to 5 Later than 5 
     years years years years
Borrowing Facility     23,413 – 2,161 –
Other long term liabilities     – 2,573 – 2,373
Derivatives     382 – – –
     23,795 2,573 2,161 2,373
There is no material difference between the fair values and the book values of these financial instruments.
24. Operating lease commitments
The following payments are due to be made on operating lease commitments:
 
  
|
 Land & buildings 
|
 Other 
|
 Total
   2008 2007 2008 2007 2008 2007 
   £’000 £’000 £’000 £’000 £’000 £’000
Within one year   384 293 276 308 660 601
Two to five years   836 818 436 236 1,272 1,054
Over five years   431 517 – – 431 517
   1,651 1,628 712 544 2,363 2,172
Notes to the Financial Statements
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46 Allergy Therapeutics plc Annual Report & Accounts 2008
25. Retirement benefit obligations
Defined contribution scheme
The Group operates a defined contribution pension scheme for certain employees in the UK. The assets of the scheme are held separately from those 
of the Group in an independently administered fund. The amount charged against the profits represents the contributions payable under the scheme 
in respect of the accounting period totalling £208k (2007: £177k). 
Defined benefit scheme
The Group operates a defined benefit pension scheme for certain employees in Germany. The actuarial valuation was carried out by Swiss Life 
Pensions Management GmbH at 30 June 2008. The major assumptions used were as follows: 
       2008 2007 
       % pa %pa
Retail price inflation       3.3 2.0
Salary increases       4.0 3.5
Pension increases in payment       2.0 2.0
Discount rate at the beginning of the year       5.0 4.6
Discount rate at the end of the year       6.0 5.0
Expected return on assets       4.1 4.1
Increase of social security contribution ceiling       3.25 3.25
Average life expectancies
Male, 65 years of age at the balance sheet date       18.0 17.9
Female, 65 years of age at the balance sheet date       22.2 22.0
Male, 45 years of age at the balance sheet date       40.8 40.6
Female, 45 years of age at the balance sheet date       44.8 44.6
The assets in the scheme and the expected rates of return were as follows:
       2008 2007 
       £’000 £’000
Fair value of planned assets       932 718
Present value of scheme liabilities       (3,256) (2,900)
Deficit in the scheme       (2,324) (2,182)
Experience gains/(losses) on plan assets       23 (11)
Experience gains/(losses) on plan liabilities       201 (30)
The pension charge generates an unrecognised deferred tax asset of £270k, however this is unrecognised in the Group accounts as there is 
uncertainty over the recoverability.
       2008 2007 
       £’000 £’000
Amounts charged to operating loss
Current service costs       222 194
Amounts included in other finance costs
Expected return on pension scheme assets       (31) (27)
Interest on pension scheme liabilities       159 129
Net charge       128 102
Amounts recognised in the statement of recognised income and expense
Actual return less expected return on pension scheme assets      23 (11)
Experience gains and losses arising on scheme liabilities       201 (30)
Changes in assumptions underlying the present value of scheme liabilities     352 174
Total amount relating to year       576 133
Opening cumulative (losses)       (1,101) (1,234)
Actuarial loss recognised       (525) (1,101)
Net movement recognised       (525) (1,101)
Notes to the Financial Statements continued
Notes to the Financial Statements
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47 Allergy Therapeutics plc Annual Report & Accounts 2008
25. Retirement benefit obligations continued
Movement in deficit during the year
       2008 2007 
       £’000 £’000
Deficit at 1 July       (2,182) (2,210)
Foreign currency differences       (444) 127
Current service cost and finance cost       (350) (296)
Contributions       64 54
Benefits paid       12 10
Actuarial gains       576 133
Deficit at 30 June       (2,324) (2,182)
The expected contributions over the forthcoming year are £228,000.
History of experience gains and losses
     2008 2008 2007 2007 
     % £’000 % £’000
Scheme assets
Difference between the expected and actual return     2.6 23 1.5 (11)
Scheme liabilities
Experience gains and (losses)     6.7 201 1.0 (30)
Changes in assumptions underlying present value      352  174
Total amount recognised     17.7 576 4.6 133
The Group has taken advantage of the exemption from the requirement to disclose the history of experience prior to the date of transition contained 
within IFRS 1.
 
26. Issued share capital
   2008 2008 2007 2007 
   Shares £’000 Shares £’000
Authorised share capital
Ordinary shares of 0.10p each
1 July and 30 June   790,151,667 790 790,151,667 790
Deferred shares of 0.10p each
1 July and 30 June   9,848,333 10 9,848,333 10
Issued and fully paid
Ordinary shares of 0.10p   81,950,632 82 81,950,632 82
At 1 July 
Issued during the year   – – – –
At 30 June   81,950,632 82 81,950,632 82
Issued and fully paid
Deferred shares of 0.10p
At 1 July   9,848,333 10 9,848,333 10
Issued during the year   – – – –
At 30 June   9,848,333 10 9,848,333 10
Issued share capital   91,798,965 92 91,798,965 92
The deferred shares have no voting rights, dividend rights or value attached to them.
Notes to the Financial Statements
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48 Allergy Therapeutics plc Annual Report & Accounts 2008
27. Share based payments
The Group has a Savings Related Share Option Plan for the benefit of all employees and Executive Directors with 12 months continuous service. 
Options granted in 2007/8 are exercisable at a 10% discount to the average market share price on the date of grant. (The 2006 and 2007 schemes 
carried a 15% discount). The vesting period is three years. The options are settled in equity once exercised. If the options remain unexercised after  
a period of six months from the end of the vesting period, the options expire. Options are forfeited if the employee leaves the Group before the 
options vest.
The Group has a Long Term Incentive Plan under which Executive Directors and senior employees may receive annual provisional awards of 
performance vesting shares. The number of shares that vest depends on the Group’s performance during the Plan cycle in terms of total shareholder 
return (TSR) compared to the TSR performance of the companies in the Plan’s peer group. If the Group’s position in the peer group at the end of 
the Plan cycle is at or above the 75th percentile, 100% of the shares provisionally awarded may vest; between the 75th and 50th percentile the 
percentage of shares that may vest will be calculated on a straight-line basis between 100% and 33.33%; below the 50th percentile no shares will 
vest. Each Plan cycle will comprise not less than three consecutive financial years. Awards are forfeited if the employee leaves the Group before the 
shares vest.
Share options were granted to employees and Directors under earlier schemes. The vesting periods are usually from one to three years. The vesting 
of some options is dependent on the Group’s TSR performance as for the Long Term Incentive Plan detailed above. The options are settled in equity 
once exercised. If the options remain unexercised after a period of 10 years from the date of the grant, the options expire. Options are forfeited if the 
employee leaves the Group before the options vest. 
 
The following share based payments were issued during the year:
      Exercise 
     Number issued Price (£) Exercise period on or before
LTIP     1,921,165 0.000 01/07/2010
SAYE     632,576 0.306 01/05/2011
     2,553,741
For the following disclosure, Long Term Incentive Plan awards, with a nil exercise price have been disclosed separately to avoid distorting the 
weighted average exercise price (WAEP):
     2008 WAEP 
|
 2007 WAEP
     Number Price (£) Number Price (£)
Outstanding at the beginning of the year     13,064,761 0.38 13,000,273 0.37
Granted during the year     632,576 0.31 179,358 0.99
Exercised during the year     (710,206) 0.05 (82,683) 0.30
Forfeited during the year     (1,533,831) 0.98 (32,187) 0.80
Outstanding at the year end     11,453,300 0.31 13,064,761 0.38
Exercisable at the year end     10,362,224 0.30 10,435,218 0.24
Included in the above numbers outstanding at 30 June 2008 are 8,983,191 (2007: 9,751,897) share options granted before 7 November 2002 or 
vested before 1 July 2006 which have been excluded from the share-based payments charge in accordance with the IFRS 1 ‘First-time Adoption of 
International Financial Reporting Standards’ transitional provisions.
Options exercised during the year had a weighted average share price at date of exercise of 28p (2007: 112p).
The share options outstanding at the end of the year have a weighted average remaining contractual life of 5.4 years (2007: 5.7 years) and have the 
following range of exercise prices:
       30 June  30 June 
       2008 2007 
Exercise price (p)       Number Number
0.1–5       6,260,261 6,971,967
6–45       3,194,244 2,561,668
46–120       1,998,795 3,531,126
       11,453,300 13,064,761
Notes to the Financial Statements continued
Notes to the Financial Statements
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49 Allergy Therapeutics plc Annual Report & Accounts 2008
27. Share based payments continued
The fair value of options granted under the Savings Related Share Option Plan has been arrived at using the Black-Scholes model. The assumptions 
made to value options granted were as follows:
      Share price 
 Vesting period  Date of Expected life Exercise price  at grant Volatility of Fair value Number 
Date of grant (yrs) vesting (yrs)  (£) Risk-free rate (£) share price (£) outstanding
10/04/08 3 01/05/11 3.2 0.3060 5% 0.34 41.6% 0.17 632,576
26/03/07 3 01/05/10 3.2 0.9945 5% 1.17 30% 0.41 101,653
11/01/06 3 01/03/09 3.2 0.6400 5% 0.75 30% 0.26 356,847
Expected volatility was based on historic volatility at the date of grant
The share-based payment charge assumes an expected option life of 3.2 years, an employee attrition rate of 5% per annum and an early 
surrender risk of 5% per annum.
The expected number of shares vesting was ‘trued-up’ for actual leavers at the balance sheet date.
Details of the shares provisionally awarded under the Long Term Incentive Plan are as follows:
      Share price 
 Vesting period  Date of Expected life Exercise price  at grant Volatility of Fair value Number 
Date of grant (yrs) vesting (yrs)  (£) Risk-free rate (£) share price (£) outstanding
21/12/07 3 04/07/10 3 0.0000 n/a 0.385 n/a 0.385 1,724,536
09/10/06 3 01/07/09 3 0.0000 n/a 1.000 n/a 1.000 818,602
14/12/05 3 14/12/08 3 0.0000 n/a 0.695 n/a 0.695 1,026,459
Awards granted under the LTIP are valued at the market price at the date of grant.
The share-based payment charge assumes an employee attrition rate of 5% per annum and a vesting probability of 41.5%.
The Group recognised total expenses of £356,000 (2007: £369,000) related to equity-settled share based payment transactions during the year. 
28. Consolidated statement of changes in equity
   Merger reserve Reserve Reserve  Foreign 
 Issued  Share – shares issued – shares held – share based  Revaluation exchange Retained 
 capital premium  by subsidiary in EBT payments reserve reserve earnings Total equity 
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 July 2006 92 33,173 40,128 (60) 306 63 – (42,406) 31,296
Exchange differences on translation  
 of foreign operations       (133)  (133)
Actuarial gains        133 133
Valuation gains taken to equity      163   163
Net income recognised directly in equity      163 (133) 133 163
Loss for the period after tax        (23,256) (23,256)
Total recognised income and expense      163 (133) (23,123) (23,093)
Share based payments     369    369
Sale of shares by Employee Benefit Trust    24     24
At 30 June 2007 92 33,173 40,128 (36) 675 226 (133) (65,529) 8,596
Exchange differences on translation  
 of foreign operations       (495)  (495)
Actuarial gains        576 576
Valuation losses taken to equity      (61)   (61)
Net income recognised directly in equity      (61) (495) 576 20
Loss for the period after tax        (20,297) (20,297)
Total recognised income and expense      (61) (495) (19,721) (20,277)
Share based payments     356    356
Sale of shares by Employee Benefit Trust    35     35
At 30 June 2008 92 33,173 40,128 (1) 1,031 165 (628) (85,250) (11,290)
ü
ü
ü
ü
ü
Notes to the Financial Statements
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50 Allergy Therapeutics plc Annual Report & Accounts 2008
29. Contingent liabilities
Allergy Therapeutics (UK) Ltd, a subsidiary of Allergy Therapeutics plc, has guaranteed the deposits required for leases on Group cars and rented office 
space occupied by a fellow subsidiary, Bencard Allergie GmbH. The amount as at 30 June 2008 was €78,000; £52,000 (2007: €78,000; £52,000).
A cross-guarantee exists between Allergy Therapeutics (Holdings) Ltd, Allergy Therapeutics (UK) Ltd, Bencard Allergie GmbH, Allergy Therapeutics 
Italia s.r.l. and Allergy Therapeutics Iberica S.L. in which the liabilities of each entity under the RBS loan agreement are guaranteed by all the others. 
 
30. Capital commitments
The Group’s capital commitments at the end of the financial period, for which no provision has been made, are as follows: 
       30 June  30 June 
       2008 2007 
       £’000 £’000
Capital commitments       1,123 1,311
Included in the above is £126,000 for ongoing factory refurbishments in the UK (2007: £280,000); £623,000 for new plant and machinery  
(2007: £854,000) and £374,000 for IT equipment and systems upgrades (2007: £177,000).
31. Related party transactions
Allergy Therapeutics plc’s related parties include its subsidiary companies and its key management.
Key management personnel are the Company’s directors, and as such full disclosure of their remuneration can be found in the Directors’ 
Remuneration report on page 22.
At 30 June 2008, the Company’s subsidiary undertakings were:
   Percentage of 
Subsidiary undertaking Country of incorporation Principal activity shares held Class of shares held
Allergy Therapeutics (Holdings) Ltd UK Holding Company 100 Ordinary and deferred
Allergy Therapeutics (UK) Ltd UK Manufacture and sale of  
   pharmaceutical products 100 Ordinary
Allergy Therapeutics Development Ltd UK Dormant 100 Ordinary
Bencard Allergie GmbH Germany Sale of pharmaceutical products 100 Ordinary
Bencard Allergie (Austria) GmbH Austria Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Italia s.r.l.  Italy Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Iberica S.L.  Spain Sale of pharmaceutical products 100 Ordinary
 
32. Events after the balance sheet date
There have been no material post-balance sheet events as defined by IAS 10 which would require disclosure or adjustment to the 30 June 2008 
Financial Statements. 
33. Transition to IFRS
From 1 July 2006 the Group has adopted International Financial Reporting Standards (IFRS) in the preparation of its financial statements.
The opening IFRS balance sheet as at the date of transition on 1 July 2006 has been prepared with regard to the measurement and recognition rules 
of IFRS 1 ‘First-time adoption of International Financial Reporting Standards’. The most significant optional exemptions adopted are set out below:
a) Exemption from the retrospective application of IAS 21 ‘The effects of changes in foreign exchange rates’. The cumulative foreign exchange 
translation balance is moved into the retained earnings at the date of transition and any subsequent translation differences recognised under  
IAS 21 are held as a separate component of equity.
b) Business combinations that occurred before the opening IFRS balance sheet date are exempt from the application of the standard (IFRS 3 ‘Business 
Combinations’) and have not been restated.
c) Exemption has been claimed under IFRS 1 regarding the defined benefit pension scheme for the need to disclose the history of experience prior  
to the date of transition.
d) Share options granted before 7 November 2002 or vested before 1 July 2006 have been excluded from the share-based payments charge.
e) Exemption from the retrospective application of IAS 21 with regard to ‘fair value adjustments and goodwill’ has been taken.
Notes to the Financial Statements continued
Notes to the Financial Statements
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51 Allergy Therapeutics plc Annual Report & Accounts 2008
33. Transition to IFRS continued
Detailed reconciliations between UK GAAP and IFRS of both equity and profit are shown below. 
Reconciliation of equity as at 1 July 2006
Balance sheet 
    Goodwill Pension Financial Capitalised 
    reversal restatement derivatives software 
    (see note 1  (see note 4 (see note 2 (see note 5 
   UK GAAP on page 53) on page 53) on page 53) on page 53) IFRS 
   £’000 £’000 £’000 £’000 £’000 £’000
Assets
Non-current assets
Property, plant and equipment   3,637    (263) 3,374
Intangible assets – Goodwill   2,326     2,326
Intangible assets – Other   829    263 1,092
Investments     843   843
Total non-current assets   6,792  843   7,635
Current assets
Trade and other receivables   3,577     3,577
Inventories   3,651     3,651
Cash and cash equivalents   23,860     23,860
Total current assets   31,088     31,088
Total assets   37,880  843   38,723
Liabilities
Current liabilities
Trade and other payables   (4,939)     (4,939)
Derivative financial instruments      (39)  (39)
Total current liabilities   (4,939)   (39)  (4,978)
Net current assets   26,149   (39)  26,110
Non current liabilities
Retirement benefit obligation   –  (2,210)   (2,210)
Long term provisions   (239)     (239)
Total non current liabilities   (239)  (2,210)   (2,449) 
Total liabilities   (5,178)  (2,210) (39)  (7,427)
Net assets   32,702  (1,367) (39)  31,296
Equity 
Capital and reserves
Issued capital   92     92
Share premium   33,173     33,173
Merger reserve – shares issued by subsidiary   40,128     40,128
Reserve – shares held by EBT   (60)     (60)
Reserve – share based payments   306     306
Revaluation reserve   –  63   63
Retained earnings   (40,937)  (1,430) (39)  (42,406)
Total equity   32,702  (1,367) (39)  31,296
Merger reserve – shares issued by subsidiary relates to the share premium of Allergy Therapeutics (Holdings) Ltd.
Notes to the Financial Statements
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33. Transition to IFRS continued
Reconciliation of equity as at 30 June 2007
Balance sheet 
       IFRS Foreign 
   Goodwill Financial Software Holiday pay Exchange 
   reversal derivatives development accrual Reserve 
   (see note 1  (see note 4 (see note 5 (see note 6 (see note 3 
  UK GAAP on page 53) on page 53) on page 53) on page 53) on page 53) IFRS 
  £’000 £’000 £’000 £’000 £’000 £’000 £’000
Assets
Non-current assets
Property, plant and equipment  5,931   (445)   5,486
Intangible assets – Goodwill  1,967 328     2,295
Intangible assets – Other  714   445   1,159
Investments  1,011      1,011
Total non-current assets  9,623 328  –   9,951
Current assets
Trade and other receivables  3,373      3,373
Derivative financial instruments    63    63
Inventories  4,911      4,911
Cash and cash equivalents  5,696      5,696
Total current assets  13,980  63    14,043
Total assets  23,603 328 63    23,994
Liabilities
Current liabilities
Trade and other payables  (10,714)    (88)  (10,802)
Derivative financial instruments    (62)    (62)
Total current liabilities  (10,714)  (62)  (88)  (10,864)
Net current assets  3,266  1  (88)  3,179
Non current liabilities
Retirement benefit obligation  (2,182)      (2,182)
Long term borrowings  (2,161)      (2,161)
Long term provisions  (191)      (191)
Total non current liabilities  (4,534)      (4,534)
Total liabilities  (15,248)  (62)  (88)  (15,398)
Net assets  8,355 328 1  (88) 0 8,596
Equity 
Capital and reserves
Issued capital  92      92
Share premium  33,173      33,173
Merger reserve – shares issued by subsidiary  40,128      40,128
Reserve – shares held by EBT  (36)      (36)
Reserve – share based payments  675      675
Revaluation reserve  226      226
Foreign exchange reserve       (133) (133)
Retained earnings  (65,903) 328 1  (88) 133 (65,529)
Total equity  8,355 328 1  (88) 0 8,596
Merger reserve – shares issued by subsidiary relates to the share premium of Allergy Therapeutics (Holdings) Ltd.
 
Notes to the Financial Statements continued
Notes to the Financial Statements
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33. Transition to IFRS continued
Reconciliation of loss for the year ended 30 June 2007
    Goodwill Pension Financial Holiday pay 
    Reversal Restatement derivatives accrual 
   UK GAAP (see note 1) (see note 2) (see note 4) (see note 6) IFRS 
   £’000 £’000 £’000 £’000 £’000 £’000
Revenue   25,742     25,742
Cost of sales   (10,068)     (10,068)
Gross profit   15,674     15,674
Distribution costs   (11,312)     (11,312)
Administration expenses – other   (5,887) 328 281 40 (88) (5,326)
Research and development costs   (25,343)     (25,343)
Administration expenses   (31,230) 328 281 40 (88) (30,669)
Other income   32     32
Finance income   647     647
Finance expense   (131)     (131)
Loss before tax   (26,320) 328 281 40 (88) (25,759)
Income tax   2,503     2,503
Loss for the period   (23,817) 328 281 40 (88) (23,256)
Notes to transition statements:
1) Goodwill recognised by the Group on acquisition of Allergy Therapeutics (UK) Ltd and Bencard Allergie GmbH under UK GAAP was amortised over 
a period of 15 years. Under IFRS goodwill is not amortised, but tested annually for impairment. The goodwill amortisation charge recognised in 
accordance with UK GAAP in 2006/7 was written back. The result of these adjustments is to decrease the amortisation charge in the income 
statement for the year ended 30 June 2007 by £328,000 and increase the carrying value of those intangible assets by the same amounts.
 
 The Group performed an impairment review of goodwill at the date of transition to IFRS and at each subsequent reporting date and concluded that 
no adjustment was required as no impairment had taken place.
2) Until 30 June 2007, the pension scheme in Germany had been accounted for as a defined contribution scheme. At this date, further information 
became available and as a result of this new evidence the pension has been reclassified as a defined benefit scheme. Prior periods have been 
restated as this is considered a material omission under IFRS.
3) Under IFRS 1, any cumulative foreign exchange translation balance at the date of transition is moved into retained earnings and any subsequent 
translation differences recognised under IAS 21 are held as a separate component of equity. 
4) Under IAS 39 all financial instruments are recorded at fair value or amortised cost dependent on the nature of the financial asset or liability. 
Derivatives are always measured at fair value with changes in value arising from fluctuations in interest rates or foreign exchange rates. Under UK 
GAAP these are not initially measured on the balance sheet and any related gains or losses arising are deferred until the underlying item impacts 
on the financial statements.
 From 1 July 2006 the Group has accounted for all of its derivatives in accordance with IAS 39 whereby all gains and losses arising from the 
fluctuations in the year are charged to the profit and loss account at the balance sheet date.
5) In accordance with UK GAAP, the Group previously included all capitalised computer software within tangible fixed assets. IFRS requires that only 
computer software which is integral to the hardware item to which it relates should be included within tangible fixed assets. All other software 
should be classified as an intangible fixed asset. Hence, the Group has reclassified computer software from tangible fixed assets to intangible fixed 
assets. There has been no impact on the income statement.
6) At 30 June 2008 the Group’s employees had on average 2.5 days of holiday accrued. IAS 19 requires a liability to be recorded for this entitlement. 
Notes to the Financial Statements
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54 Allergy Therapeutics plc Annual Report & Accounts 2008
33. Transition to IFRS continued
Cashflow
As a result of the transition to IFRS the following changes have been reflected in the cashflow statement.
The definition of cash under UK GAAP is narrower than under IAS 7 ‘Cash flow statements’. Under IFRS highly liquid investments, readily convertible  
to a known amount of cash and with an insignificant risk of a change in value are regarded as cash equivalents. Such a readily convertible investment 
is the money market deposit and this is included in the heading ‘Cash and cash equivalents’.
Under UK GAAP payments to acquire property, plant and equipment were classified as part of ‘Capital expenditure and financial investment’ whilst 
under IFRS such payments have been reclassified as part of ‘Investing activities’.
There are no other material differences between the cashflow statement presented under IFRS and that presented under UK GAAP.
Notes to the Financial Statements continued
Notes to the Financial Statements
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55 Allergy Therapeutics plc Annual Report & Accounts 2008
We have audited the parent Company financial statements of Allergy Therapeutics plc for the year ended 30 June 2008 which comprise the  
parent Company balance sheet and notes 1 to 11. These parent Company financial statements have been prepared under the accounting policies  
set out therein.
 
We have reported separately on the Group financial statements of Allergy Therapeutics plc for the year ended 30 June 2008.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been 
undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the parent Company financial statements in accordance with United Kingdom law 
and Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the parent Company financial statements in accordance with relevant legal and regulatory requirements and International 
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the parent Company financial statements give a true and fair view and whether the parent Company 
financial statements have been properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the 
information given in the Report of Directors is consistent with the financial statements. The information given in the Report of Directors includes that 
specific information presented in the Chairman’s Report, Chief Executive’s Review, and the Financial Review that is cross referred from the Business 
Development and Performance section of the Report of the Directors.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the information and 
explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other transactions is not disclosed.
We read other information contained in the Annual Report and consider whether it is consistent with the audited Company financial statements. 
The other information comprises only the Chairman’s Report, Chief Executive’s Review, Financial Review, Report of the Directors and the Directors’ 
Remuneration Report. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies 
with the Company financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit 
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the parent Company financial statements. It also 
includes an assessment of the significant estimates and judgments made by the Directors in the preparation of the parent Company financial 
statements, and of whether the accounting policies are appropriate to the Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with 
sufficient evidence to give reasonable assurance that the parent Company financial statements are free from material misstatement, whether caused 
by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the parent 
Company financial statements.
Opinion
In our opinion:
the parent Company financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice,  
of the state of the Company’s affairs as at 30 June 2008; 
the parent Company financial statements have been properly prepared in accordance with the Companies Act 1985; and 
the information given in the Report of the Directors is consistent with the financial statements.
Grant Thornton UK LLP
Registered Auditor
Chartered Accountants
Gatwick
22 September 2008
ü
ü
ü
Report of the Independent Auditor to the Members of
Allergy Therapeutics plc
Report of the Independent Auditor
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56 Allergy Therapeutics plc Annual Report & Accounts 2008
       30 June 30 June 
       2008 2007 
      Note £’000 £’000
Fixed Assets
Investments      3 51 51
Current assets
Debtors: amounts falling due within one year      4 121 203
Current liabilities
Creditors: amounts falling due within one year      5 (117) (76)
Net current assets       4 127
Total assets less current liabilities       55 178
Net assets       55 178
Capital and reserves
Called up share capital      6 92 92
Share premium      7 33,173 33,173
Other reserves – shares held by EBT      7 (1) (36)
Other reserves – share based payments      7 1,031 675
Profit and loss account      7 (34,240) (33,726)
Total equity       55 178
These financial statements were approved by the Board of Directors on 22nd September 2008 and were signed on its behalf by:
K Carter  I Postlethwaite
Chief Executive Officer Finance Director
Company Balance Sheet
Company Balance Sheet
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57 Allergy Therapeutics plc Annual Report & Accounts 2008
1. Accounting policies
Basis of preparation
The separate financial statements of the Company are presented as required by the Companies Act 1985. As permitted by that Act, the  
separate financial statements have been prepared in accordance with applicable United Kingdom accounting standards and under the historical  
cost convention. 
The Group incurred losses for the financial years ended 30 June 2007 and 2008 primarily as a consequence of its investment in research and 
development activities; these losses have been funded by equity issues, debt facilities and cash generated by the operating business. 
The Group has prepared detailed budgets, including cash flow projections, for the periods ending 30 June 2009 to 30 June 2011. These projections 
include assumptions on the trading performance of the operating business and the continued availability of the existing debt facilities. After making 
appropriate enquiries, which included a review of the annual budget, by considering the cash flow requirements for the foreseeable future and the 
effects of sales and other sensitivities on the Company’s funding plans, the Directors continue to believe that the Group and Company will have 
adequate resources to continue in operational existence for the foreseeable future and accordingly have applied the going concern principle in 
drawing up the financial statements. In reaching this view, the Directors have considered and prioritised the actions that could be taken to offset  
the impact of any shortfall in operating performance.
Investments
Investments in shares in subsidiary undertakings are included at cost less amounts written off.
 
Foreign currencies
Transactions in foreign currencies are recorded using the rate of exchange ruling at the preceding month-end. Monetary assets and liabilities 
denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation  
are included in the profit and loss account.
Deferred taxation
Deferred tax is recognised without discounting in respect of all timing differences, in the following year, between the treatment of certain items  
for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date except as otherwise required by FRS 19. 
Employee Benefit Trust (EBT)
The financial statements include the assets and liabilities of a trust, set up for the benefit of the Company’s employees. 
The Employee Benefit Trust has acquired shares in the Company and these are deducted from shareholders funds on the balance sheet within ‘Other 
reserves’ initially at the cost that the shares were acquired. The net proceeds received from the issue of these shares through the exercise of options 
are recognised through this reserve
Share based payments
The Company has adopted FRS 20 with effect from 1 July 2006. FRS 20 requires the recognition of a charge to the profit and loss account for all 
applicable share based payments, including share options, SAYE schemes and share based Long Term Incentive Plan. 
The Company has equity-settled share based payments but no cash-settled share based payments. All share based payment awards granted after  
7 November 2002 which had not vested prior to 1 July 2006 are recognised in the financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where employees are 
rewarded using share-based payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the 
instrument granted to the employee. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions  
(for example, profitability and sales growth targets). 
If vesting periods or non-market based vesting conditions apply, the expense is allocated over the vesting period, based on the best available 
estimate of share options expected to vest. Estimates are revised subsequently if there is any indication that the number of share options expected  
to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. 
If market based vesting conditions apply, the expense is allocated over the relevant period, usually the period over which performance is measured. 
Vesting assumptions and resulting expenses are fixed at the date of grant, regardless of whether market conditions are actually met. Any adjustment 
for options which lapse prior to vesting is recognised in the current period.
Notes to the Company Balance Sheet
Notes to the Company Balance Sheet
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58 Allergy Therapeutics plc Annual Report & Accounts 2008
2. Loss for the financial period
The Company has taken advantage of s.230 of the Companies Act 1985 and has not included its own profit and loss account in these financial 
statements. The Company’s loss for the period was £514,000.
3. Investments
        Shares in  
        subsidiary 
        undertaking 
        £’000
Cost
Investment brought forward and carried forward        51
Provision
Provision brought forward and carried forward        –
Net book value at 30 June 2008        51
At 30 June 2008 the Company’s subsidiary undertakings were:
   Percentage of 
Subsidiary undertaking Country of incorporation Principal activity shares held Class of shares held
Allergy Therapeutics (Holdings) Ltd UK Holding Company 100 Ordinary and deferred
Allergy Therapeutics (UK) Ltd UK Manufacture and sale of  
   pharmaceutical products 100 Ordinary
Allergy Therapeutics Development Ltd UK Dormant 100 Ordinary
Bencard Allergie GmbH Germany Sale of pharmaceutical products 100 Ordinary
Bencard Allergie (Austria) GmbH Austria Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Italia s.r.l.  Italy Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Iberica S.L.  Spain Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics (Holdings) Ltd is fully owned by Allergy Therapeutics plc. All other subsidiary undertakings except Bencard Allergie (Austria) 
GmbH, are fully owned by Allergy Therapeutics (Holdings) Ltd. Bencard Allergie (Austria) GmbH is fully owned by Bencard Allergie GmbH.
4. Debtors
       30 June  30 June 
       2008 2007 
       £’000 £’000
Amounts falling due within one year
Amounts owed by subsidiary undertakings       117 199
Other debtors       4 4
       121 203
5 Creditors – amounts falling due within one year
       30 June  30 June 
       2008 2007 
       £’000 £’000
Taxation and social security       117 66
Accruals and deferred income       – 10
       117 76
6. Called up share capital
Full details of the Company’s share capital are set out in Note 26 of the consolidated financial statements.
Notes to the Company Balance Sheet continued
Notes to the Company Balance Sheet
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59 Allergy Therapeutics plc Annual Report & Accounts 2008
7. Reserves
Profit and loss account
        £’000
At 30 June 2007        (33,726)
Retained loss for the year        (514)
At 30 June 2008        (34,240)
         
Share premium account
        £’000
At 30 June 2007        33,173
At 30 June 2008        33,173
 
Other reserve – share based payments
        £’000
At 30 June 2007        675
Provision in year for share based payments        356
At 30 June 2008        1,031
         
Other reserve – EBT
        £’000
At 30 June 2007        (36)
Sale of shares by EBT        35
At 30 June 2008        (1)
8. Share based payments
Full details of the Company’s share based payments are set out in Note 27 of the consolidated financial statements.
9. Director’s emoluments
Full details of the Company’s Directors’ emoluments are set out in the Directors’ Remuneration Report in the Report of the Directors.
10. Reconciliation of movement in shareholders’ funds
       Year to Year to 
       30 June  30 June 
       2008 2007 
       £’000 £’000
(Loss)/profit for the financial year       (514) 32
Issue of shares from EBT       35 24
Share based payments       356 369
Net (deduction from)/addition to shareholders’ funds       (123) 425
Opening shareholders’ funds       178 (247)
Closing shareholders’ funds       55 178
 
11. Contingent Liabilities
Full details of the Company’s contingent liabilities are set out in Note 29 of the consolidated financial statements.
Notes to the Company Balance Sheet
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60 Allergy Therapeutics plc Annual Report & Accounts 2008
Registered office
Dominion Way
Worthing
West Sussex
BN14 8SA
Advisers
Nominated Adviser and Broker
Nomura Code Securities
1 Carey Lane
London
EC2V 8AE
Auditors
Grant Thornton UK LLP
The Explorer Building
Fleming Way
Manor Royal
Crawley West Sussex
RH10 9GT
Lawyers
Berwin Leighton Paisner
Adelaide House
London Bridge
London
EC4R 9HA
Actuary
SLPM Swiss Life Pensions Management GmbH
Swiss Life Gruppe
Berliner Strasse 85
80805 Munchen
Germany
Registrars
Capita IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent 
BR3 4TU
Bankers
The Royal Bank of Scotland
South East Corporate Centre
Turnpike House
123 High Street
Crawley West Sussex
RH10 1DQ
Public Relations Advisers
Financial Dynamics
Holborn Gate
26 Southampton Buildings
London
WC2A 1PB
Patent Attorneys
D Young & Co
120 Holborn
London
EC1N 2DY
Trademark Attorneys
Hoffman Eitle
Sardinia House
Sardinia Street
52 Lincoln’s Inn Fields
London
WC2A 3LZ
Arabellastrasse 4
D-81925 München
Germany
Shareholder Information
Shareholder Information
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