Allergy Therapeutics plc
Annual Report  
& Accounts 2011
www.allergytherapeutics.com   www.pollinex.com 02
Allergy Therapeutics is a 
European based speciality 
pharmaceutical company 
focused on the treatment 
and prevention of allergy.
© Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com  Contents
03 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Our Business
Who we Are  04
Highlights  06
Chairman’s Statement  08
Chief Executive’s Review  12
Our Markets  18
Our Products  22
Research & Development  26
Financial Review  30
Meet the Board  36
 
Financial Statements
Directors’ Report  40
Directors’ Remuneration Report  50
Nominations Committee Report  54
Independent Auditor’s Report   55 
to the Members of Allergy  
Therapeutics plc (Group)  
Consolidated Income Statement  56
Consolidated Statement of   56 
Comprehensive Income  
Consolidated Balance Sheet  57
Consolidated Statement of   58 
Changes in Equity   
   
Consolidated Cashflow   59 
Statement  
Notes to the Financial   60 
Statements  
Independent Auditor’s Report  95  
to the Members of Allergy  
Therapeutics plc (Company)  
Company Balance Sheet  96
Notes to the Company   97 
Balance Sheet  
Shareholder Information  103 
   
 
Contents Who we Are
Allergy Therapeutics is a European-based 
speciality pharmaceutical company focused 
upon the treatment and prevention of allergy.
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 non-European markets 
Mission Statement
To create a sustainable, fast-growing and 
profitable global speciality pharmaceutical 
business with a substantial franchise in  
the allergy sector by developing innovative, 
patented, registered therapies for both the 
treatment and prevention of allergy-related 
conditions.
04 Who we Are © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com  Who we Are
05 Who we Are © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com  Highlights
At a Glance
•   FDA to lift clinical hold on INDs for  
MATA-MPL
©
 products subject to 
submission of agreed protocols
 - Partnering process initiated to exploit   
 significant US market opportunity
•  10 Marketing Authorisation Applications   
 filed in Germany
 - Pollinex
®
 Quattro grass filed  
 in Switzerland
•  Teomed AG acquisition in Switzerland fully  
 integrated and beginning to deliver
•  Netherlands subsidiary established and   
 operating successfully
•  Full-year revenue up 2% to £42 million  
 (2010: £41 million); revenue up 5% at   
 constant currency to £43 million 
 - Pollinex
®
 Quattro revenue up 2%  
 at constant currency to £22 million  
 (2010: £21 million)
•  Number of in-licensing deals signed   
 leveraging sales infrastructure
•  PQ grass dossier report received from   
 Germany’s PEI, response to be submitted  
 November 2011
•  EBITDA £1.8 million (2010: £2.9 million);   
 adjusted EBITDA pre FX hedge fair   
 valuation impact £2.6 million (2010:  
 £2.9 million)
•  Cost reduction plan executed and    
 head count reduced by 10% 
Post reporting period events
•   Initial roll-out of Emerging Market  
strategy with supplies to Latin America 
(August 2011)
06 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com Highlights © Allergy Therapeutics plc Annual Report & Accounts 2011  www.allergytherapeutics.com www.pollinex.com 
Highlights
07 Highlights © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 08
Chairman’s Statement
We are at an exciting stage in the 
development of our business. During  
the period we have achieved a number  
of regulatory milestones, strengthened  
our financial position and established  
a presence in the lucrative Emerging  
Markets (starting with some important  
Latin American markets) to improve  
future growth prospects outside Europe. 
Chairman’s Statement © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 09
Chairman’s 
Statement
Chairman’s Statement © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 10
I am delighted to have this opportunity to write to you  
for the first time as Chairman. In particular, I would like  
to thank Ignace Goethals, from whom I took over the 
role on the 1 January this year, for a smooth and helpful 
transition and I welcome Ignace’s continued presence  
on the Board as a non-executive director.
I am pleased to report that, despite being impacted by  
a weak German market and a weaker Euro against Sterling 
on average over the year, the Group again reported an 
operating profit; albeit smaller than the previous year due 
in part to fair valuation of the foreign exchange hedges. 
This has been achieved by the acquisition of Teomed AG 
in Switzerland and other initiatives to improve revenue 
outside Germany whilst reducing costs in other areas, 
including reducing head count by approximately 10%.  
The lower operating profit and higher finance charges 
resulted in a £2.7m loss after tax (2010: £0.6m profit).  
The financial review on pages 30 to 35 describes the 
results in detail. 
We achieved the key regulatory goals we set for the 
year. Firstly in Germany, we submitted 10 MAAs to the 
Paul Erlich Institute (PEI), beginning to focus the portfolio 
on ‘registered finished products’. Secondly, in the 
United States, the Company met with the Food & Drug 
Administration (FDA) and they stated their intention to lift 
the clinical hold on all three programmes (Grass, Ragweed 
& Tree) and we are now preparing detailed protocols for 
discussion with the FDA to lift the hold officially. Finally 
we received the PEI report on the Pollinex
®
 Quattro 
Grass Complete 0.5ml MAA. We are reviewing the report 
and believe that the issues raised can be satisfactorily 
addressed and expect to submit a response by the end  
of November.
With a clear strategy for expanding our  
business we are well positioned to deliver  
growth for our shareholders.
Peter Jensen    
Chairman   
16 September 2011
Chairman’s Statement 11 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Earlier in the year the European commercial infrastructure 
was strengthened by the acquisition of Teomed AG,  
a Swiss speciality distribution company. Teomed is  
the first acquisition following the increased emphasis  
in the Group’s strategy towards strengthening its 
European market position. Our new operation in the 
Netherlands further reinforces our European base. Both 
operations are now fully integrated and delivering value.
Following our decision to reduce the size of the Board, 
Keith Carter retired as a non executive director on  
31 December 2010 and both Tom Holdich and Christian 
Gratz left the Board on 30 September 2010. On behalf 
of my fellow directors I wish to thank them all for their 
contributions to the Group’s development.
We are at an exciting stage in the development of  
our business. During the period we have achieved  
a number of regulatory milestones, strengthened  
our financial position and established a presence in  
the lucrative Emerging Markets (starting with some 
important Latin American markets) to improve future 
growth prospects outside Europe. We will look for  
a partner to develop our Pollinex
®
 Quattro assets for  
the US market and we will seek to register Pollinex
®
 
Quattro Grass Complete 0.5ml in Germany and  
beyond through the European mutual recognition  
process. With a clear strategy for expanding our  
business we are well positioned to deliver growth  
for our shareholders.
Peter Jensen 
Chairman
16 September 2011
Chairman’s Statement 12 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
CEO’s Review
A key strategic goal is to expand the  
revenue base outside Europe, and the  
Group therefore intends to pursue 
opportunities in the Emerging Markets. 
Initially the Group will focus on Argentina, 
Columbia, Venezuela and Chile before  
moving into other Latin American markets.
  
CEO’s Review 13 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
CEO’s Review
CEO’s Review 14 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Now in my second year as CEO, I am pleased that  
the Group is progressing well despite challenging market 
conditions and is delivering in line with its strategy.  
One of our key ambitions for this year was for the Group  
to maintain operating profitability and I am pleased to 
report that despite difficult market conditions in Germany 
this has been achieved. Operating profit for the year is 
£0.1m (2010: £1.5m), which included a non-cash charge  
of £0.8m (2010: £nil) at the balance sheet date for the  
fair valuation of outstanding foreign exchange contracts.
Operationally, the results for the period were  
impacted by a weaker German market, with gross  
sales (before German statutory sales rebates)  
marginally higher at £43.0m (2010: £42.0m).  
On a constant currency basis however, revenue  
increased by 5%. Gross sales of Pollinex
®
 Quattro  
grew by 2% on a constant currency basis.
The market in Germany has declined for the first time 
in the Group’s history as a result of various factors 
changing in the market place, including a new regulatory 
environment - the Therapeutic Allergen Regulation (TAV) - 
which has led to the withdrawal of certain minor product 
ranges and pressures from German health insurance 
companies on doctors to reduce spending.
The Group has initiated a number of measures to 
offset the impact of weaker sales in Germany including 
strengthening our sales teams in other major markets 
outside of Germany, all of which have been showing  
good growth. 
The Group has also recently set up its own operation  
in the Netherlands where sales have progressed well and 
we have taken advantage of the infrastructure to in-license 
complementary products to those already in our portfolio. 
On the first day of the financial year, the Company 
acquired Teomed AG of Switzerland for a consideration 
of CHF1.2m (£0.7m).Teomed specialises in the field of 
allergy and was the distributor for the Group’s products 
and other companies’ products in the Swiss market. 
Following this transaction Allergy Therapeutics has a 
direct sales and marketing presence in seven countries: 
Germany, Italy, Spain, UK, Austria, The Netherlands and 
Switzerland. The allergy vaccine market in Switzerland  
is sophisticated and well established, and is worth  
around £10 million per annum. The Pollinex
®
 Quattro  
Grass Complete 0.5ml dossier was submitted to the 
Swiss regulators in April 2011. These two new operations 
are a great opportunity to improve earnings and provides 
us with an established infrastructure from which to  
launch Pollinex
®
 Quattro in the future.
Over the past 6 years the Group has invested around £66m across 
three development programs for grass, tree and ragweed in Pollinex
®
 
Quattro and in proving the benefit of MPL in an oral vaccine.  
We have started the process to identify the right partner to help 
finish this development program, seek registrations in markets 
outside Europe and subsequently to commercialise the products. 
 
Manuel Llobet    
Chief Executive Officer   16 September 2011
CEO’s Review 15 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
A key strategic goal is to expand the revenue base outside 
Europe, and the Group therefore intends to pursue 
opportunities in the Emerging Markets. Initially the Group 
will focus on Argentina, Columbia, Venezuela and Chile 
before moving into other Latin American markets. Allergy 
Therapeutics has established the necessary infrastructure 
to begin building a presence in these markets, including 
creating a subsidiary in Argentina and putting distribution 
agreements in place to support its sales representatives. 
Allergic Rhinitis (“AR”) is a common chronic condition in 
Latin America, with a recently reported prevalence rate 
of 7% (approximately 40 million people) in a population-
based study. We want to maximize this opportunity 
for our products and anticipate that Emerging Markets 
will account for a significant proportion of the Group’s 
revenues in 5 years time.
At a meeting with the U.S. FDA in March this year,  
the Group was informed that the FDA intends to lift the 
clinical hold in order to allow the development of MATA-
MPL
©
 products to move forward. We are now preparing 
detailed protocols for discussion with the FDA to lift the 
hold officially and these will be submitted by December 
2011. This is a significant step forward for the Group.  
It is estimated that some 60 million people suffer from 
allergy in North America, an estimated 25 million of whom 
have been diagnosed as suffering from moderate to severe 
allergy. In many cases the disease and allergy symptoms 
are not well-controlled, and thus there is a significant unmet 
need for better treatment. It has recently been estimated 
that up to 3 million Americans are being treated with a 
vaccine prepared by the treating physicians themselves, 
who buy the base products in bulk from manufacturing 
companies. No registered products for allergy 
immunotherapy are currently available in North America.
Over the past 6 years the Group has invested around 
£66m across three development programs for grass, tree 
and ragweed in Pollinex
®
 Quattro and in proving the benefit 
of MPL in an oral vaccine. We have started the process to 
identify the right partner to help finish this development 
program, seek registrations in markets outside Europe  
and subsequently to commercialise the products.
CEO’s Review 16 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
At the end of November 2010 the Group submitted  
10 Marketing Authorisation Applications (MAA’s) to the 
Paul Ehrlich Institute (PEI), the Regulatory Authority for 
biological products in Germany. This achievement has 
been in response to the introduction of the TAV, which  
has changed the regulatory landscape in Germany.  
To date many products have been available in Germany  
on a ‘named patient’ basis. However, as a result of the 
TAV, all immunotherapy products containing common 
allergens (grass, trees, house dust mites and insect 
venoms) will need Marketing Authorisations by 2017. 
Since 2008, Allergy Therapeutics has reviewed its  
product portfolio and has submitted MAA’s for its top  
10 products in the Pollinex
®
 Quattro, Tyrosin TU t.o.p.  
and Oralvac Compact ranges. This has been a major 
project that has required significant investment over the 
past two years and will result in the Group continuing to 
offer an attractive portfolio of products. These regulatory 
changes should favour the Group as the market will 
become focused on evidence-based, approved, value-
added immunotherapy products and Allergy Therapeutics  
is well-placed to deliver a range of such products.
The Group has a broad product portfolio that addresses 
the needs of the market: injectable (both short and longer 
course), oral and diagnostics. The flagship product is 
Pollinex
®
 Quattro, an injectable short course vaccine  
which requires only four injections over a period of  
three weeks. Pollinex
®
 Quattro is currently sold across  
a number of European countries on a named patient  
basis. Completion of the regulatory process outlined 
below will open up new markets to Pollinex
®
 Quattro  
and enable Allergy Therapeutics to improve market  
share in those countries where only named patient  
sales are currently possible.
During the year we have added to our portfolio through  
a number of agreements.
The Anapen
®
 auto-injector adrenaline (epinephrine) pen 
has been licensed in from Lincoln Medical Ltd. in certain 
markets. Anapen
®
 is a device to administer adrenaline  
and treats anaphylactic shock. This can be caused by  
an allergic reaction to foods such as nuts and shell fish,  
or to a wasp or bee sting, as well as contact with 
materials such as natural latex. Auto-injector pens are 
commonly carried by people at risk of anaphylactic shock 
as the adrenaline can be self-administered and is very  
fast acting. Adrenaline also features in emergency  
drug kits frequently held by GP surgeries and dental  
practices to treat patients prior to the emergency  
services arriving on scene. It is estimated that up  
to 4 million people in Europe and the USA carry  
an adrenaline auto-injector. 
CEO’s Review 17 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
DAP , a diagnostic product for people who are allergic  
to penicillin, has been licensed from Diater Laboratorios 
S.A. for certain markets. Millions of patients believe they 
are allergic to penicillin. However, it is estimated that 
only approximately one in ten of these patients is actually 
allergic. If not diagnosed properly, patients who believe 
they are allergic to penicillin will be treated with broad 
spectrum antibiotics. Improved diagnosis can limit the  
use of broad spectrum antibiotics, thereby lowering 
treatment costs and the risk of developing multi drug 
resistant bacteria.
Avamys nasal spray is co-promoted in Germany on  
behalf of GSK. People who suffer from nasal allergies 
(allergic rhinitis) can experience a variety of symptoms  
as a result of their allergy, including a runny, itchy or 
blocked nose, sneezing and sinus discomfort.  
These symptoms are a result of inflammation in 
the nasal passages. Avamys contains the active 
ingredient fluticasone furoate, which is a corticosteroid. 
Corticosteroids are hormones produced naturally by 
the adrenal glands that have many important functions, 
including control of inflammatory responses. Fluticasone 
is a synthetic corticosteroid and is administered by nasal 
spray to decrease inflammation in the nasal passages. 
 
 
Outlook
As a result of new regulations in Europe, a new global 
market of registered allergy vaccine products will be 
created. Immunotherapy is receiving more attention and 
is the only segment of the Allergic Rhinitis market that 
is expected to show significant growth in the next few 
years, according to a recent Datamonitor report. We are 
preparing the Group to take advantage of this opportunity. 
Key objectives have been achieved to make the Group 
profitable and to strengthen our European business. 
During the year we have consolidated our position in 
Europe and remained profitable at the EBITDA level. 
We anticipate building on our profitability in the coming 
years as we focus on the Emerging Markets and on the 
continued expansion of our portfolio of products through 
in-licensing. The work we have already undertaken to 
reduce and carefully control our costs means we are  
now well placed to maximise the long-term potential  
of our business by moving into new territories and  
adding new products for our sales force to sell.  
Work will also continue to find a partner to help develop 
and commercialise our products in North America.
 
The current challenging economic climate may affect 
certain markets, with reimbursed markets seeing 
increased pressure on payors to lower the cost of 
medicines and greater pressure on discretionary spending 
in markets where products are not fully reimbursed. 
Variations in the Euro/Sterling exchange rate will also 
continue to affect performance in the second half.  
We will also continue to move forward with regulatory 
activities in Germany and the US.
There are many opportunities that will enable us to create 
a bright future for Allergy Therapeutics. With operating 
profits delivered for the second year running giving 
the Group a strong financial base and excellent market 
potential, I believe we will build on this year’s performance  
and create significant long-term value for shareholders and  
stakeholders, as well as making a real difference to patients.
Manuel Llobet 
Chief Executive Officer
16 September 2011
CEO’s Review 18 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Our Markets 
We have a particularly strong presence  
in Europe with our own operations in 
important markets including Germany,  
Italy, Spain, Austria and the United Kingdom; 
and we now have operations in Switzerland  
and The Netherlands. 
Our Markets 19 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Our Markets 
Our Markets 20 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
This year has seen the expansion of our own sales 
infrastructure in Europe and further investment in  
our existing markets.
We have a particularly strong presence in Europe with  
our own operations in important markets including 
Germany, Italy, Spain, Austria and the United Kingdom; 
and we now have operations in Switzerland and The 
Netherlands. The only major European market in which  
we are not yet present is France.
In markets where we do not have a direct presence,  
we often make our products available through partners. 
The most important distributor markets for us are  
Canada, the Czech and Slovak Republics and South Korea. 
Our goal is to invest profits back into the business to 
sustain and increase this growth in sales. The quality  
and quantity of our efforts in sales and marketing within 
our affiliates has improved and we expect to benefit  
from this in the coming years, as well as through our 
strategic initiatives to expand into Emerging Markets,  
in-license products and leverage our sales infrastructure.
 Germany
The most important market for the Group, Germany  
is also the single largest immunotherapy market in the 
world by value, with annual sales of over €300 million. 
Germany has been a key focus for the Group this year 
and improvements have been made in a number of 
areas,including management structure, new marketing 
materials and employing a portfolio approach to  
marketing products.
The market has been challenging recently due to 
changes being brought about by the Therapeutic Allergen 
Regulation through the Paul-Ehrlich Institute (PEI), the 
Regulatory Authority for biological products in Germany, 
and because of various austerity measures brought in  
by the government. 
 
 Italy
We estimate the total Italian immunotherapy market to  
be worth €55 million in sales per year; although growth  
is somewhat limited due to negative economic conditions 
impacting patients and their ability to pay for vaccines. 
Italy is largely a sublingual market.
With a stronger organisation in place, we believe there 
is a great opportunity to continue to grow our business 
despite the flat performance of the overall market.
Our goal is to invest profits back into the business to sustain and increase  
this growth in sales. The quality and quantity of our efforts in sales and  
marketing within our affiliates has improved and we expect to benefit from  
this in the coming years, as well as through our strategic initiatives to expand 
into Emerging Markets, in-license products and leverage our sales infrastructure.
Our Markets 21 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
 Spain
Total market sales per year in Spain are estimated to be 
€61 million, with mid-single digit growth during the past 
year. Growth in this market has recently been impacted 
by the economic slowdown. It still remains a large market 
in terms of volume, with approximately 150,000 patients 
a year estimated to receive immunotherapy. Injectable 
immunotherapy products continue to be the treatment  
of choice for Spanish physicians.
 
 United Kingdom
The UK, our home market, is an important if challenging 
marketplace and a potential area of future growth for  
the Group. Whilst there is limited use of allergy vaccines  
in the UK, this is changing and there has been an 
increased focus at government level, with the release  
of a second government White Paper (policy statement) 
and reforms underway in the NHS. 
We are working with several groups who are actively 
seeking solutions to the lack of existing allergy services and 
it is envisaged that this situation will improve in the near 
future. Our business in the UK has been growing quickly 
in a complex market. The focus on pharmaeconomics is 
of significant benefit to Pollinex
®
 Quattro, with the short 
duration of treatment reducing direct and indirect costs. 
This leads to high rates of compliance and makes for 
compelling pharmaeconomic outcomes.
 Austria
Austria is an established market with total market  
sales of about €18 million per year and our own  
operation is performing well, with double-digit growth. 
 The Netherlands
This represents a new opportunity for the Group following 
the establishment of our own operations. The total market 
size is close to €50 million a year. Like other European 
countries, new regulations require that only registered 
products can be sold. This should be to our advantage 
as we already have registrations in this market for our 
Pollinex
®
 products. 
 Switzerland
The allergy vaccine market in Switzerland is sophisticated 
and well established, and is worth approximately  
€12 million per annum. The recent acquisition of Teomed 
provides a great opportunity to improve earnings and  
gives us an established infrastructure from which to  
launch Pollinex
®
 Quattro in the future. For the purposes 
of the segmental reporting analysis, Central Europe 
represents the markets of Germany, Austria, Netherlands 
and Switzerland and Southern Europe represents Spain 
and Italy. The Other segment represents the distributor 
and licensee revenues through other world wide markets 
including Canada and South Korea. 
Revenue by Country
 
Germany – 66%
Italy – 9%
UK & Export Market – 9%
Spain – 5%
Austria – 3%
The Netherlands – 3%
Switzerland – 5%
Our Markets 22 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Our Products 
Injectable vaccines form the largest  
segment of our vaccines portfolio and  
are comprised of one key product,  
Pollinex
®
 Quattro, which is the largest  
and the fastest growing product in  
our portfolio.
Our Products 23 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Our Products 
Our Products 24 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Pollinex
®
 Quattro, launched in 1999, began a transformation  
of immunotherapy by introducing allergy vaccination with  
only four injections per course. 
The Group sells a wide range of allergy vaccines and 
diagnostics. The main sales of the Group are in allergy 
vaccines and we sell both injectable vaccines and 
sublingual vaccines. Our vaccines and diagnostics trade 
under certain brand names, however under each brand 
name is a product that is produced in many different 
forms depending upon the specific allergy needs of the 
patient as determined by the doctor. The majority of  
our sales are for the treatment of pollen related allergies, 
particularly for allergies to grasses and trees. 
According to the current opinion of expert immunologists, 
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, it has become established as the 
only therapy addressing the cause of type one allergies.
Injectable vaccines form the largest segment of our 
vaccines portfolio and are comprised of one key product, 
Pollinex
®
 Quattro, which is the largest and the fastest 
growing product in our portfolio, and various other longer 
course products. These other products trade under 
different names in different markets and include Pollinex
®
, 
TA Mix top and Venomil.
Pollinex
®
 Quattro, launched in 1999, began a transformation 
of immunotherapy by introducing allergy vaccination with 
only four injections per course. 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 R595 using a process of 
extraction, purification and detoxification.
As a vaccine adjuvant, MPL has been used for many 
years. 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, a hepatitis B vaccine and 
an HPV vaccine to protect against cervical cancer - Fendrix 
and Cervarix respectively - have received broad approval 
in Europe, the US, Japan and Canada. These modern, 
successful vaccines are already widely used.
Our Products 25 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
The adjuvant effect of MPL in specific immunotherapy 
(SIT) has been documented in numerous studies and 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.
Our sublingual product is Oralvac. Recently we relaunched 
this product in a new and improved form as Oralvac 
Compact. Oralvac Compact’s dosing schedule allows for 
a more rapid and simpler escalation of dosage making 
treatment more convenient for patients and doctors. 
The product launched in 2009 in Germany and is being 
launched into other European markets. We expect that 
this product will be very competitive and attract interest 
in the sublingual market at a time when competitors are 
launching new products.
Licensed Products
Anapen
®
 is an innovative auto-injector containing  
150 mcg, 300 mcg or 500 mcg of epinephrine  
(adrenaline) for the emergency (self) treatment of 
anaphylaxis. Anaphylaxis is a severe, life-threatening 
systemic allergic reaction. Adrenaline (epinephrine) is  
a hormone which combats the effects of anaphylaxis  
by maintaining blood pressure, increasing the heart rate, 
constricting blood vessels and dilating airways. We have 
launched the product in October 2010 in The Netherlands 
and will be launching in the short term in Spain,  
Italy, Belgium and several Latin American markets.
DAP is a product for exclusive use in the diagnosis  
of type I or immediate hypersensitivity to benzylpenicillin 
and related antibiotics (betalactams) by means of 
cutaneous tests (prick and intradermal). Allergic reactions 
to betalactams are the most common cause of severe 
adverse drug reactions and there is an increasing 
prevalence in the population (up to 10% of the  
German population reports an allergy to penicillin).  
DAP was launched in Italy in May 2011.
How We’re Doing
Gross Sales  £m
Oralvac
®
 Compact 
(sublingual) 
Tyrosin TU t.o.p Pollinex
®
 Grasses + Rye Pollinex
®
 Trees
The majority of our sales are for the  
treatment of pollen related allergies,  
particularly for allergies to grasses  
and trees. 
Our Products
2009 
38.6
2010 
42.0
2011 
43.0
Pollinex
®
 Quattro 26 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Research & Development
Within the R&D area, this has been  
a year of great importance as several key 
development goals have been achieved  
in the regulatory arena.
Research & Development 27 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Research & 
Development
Research & Development 28 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Within the R&D area, this has been a year of great 
importance as several key development goals have  
been achieved in the regulatory arena.
As mentioned in previous annual reports, the Therapeutic 
Allergen Regulation (introduced by the Paul-Ehrlich 
Institute, the Regulatory Authority for biological products 
in Germany) has changed the regulatory landscape. For 
the preceding two years, Allergy Therapeutics has been 
preparing Marketing Authorisation Applications (MAAs) 
for our key products and, during the course of this year, 
we successfully submitted 10 MAAs to the PEI before the 
deadline of 1 December 2010. This was a major project 
and achievement, beginning to focus the portfolio on 
registered finished products. It is expected that additional 
clinical information will be required on some of these 
products over the next few years to 2017, which we will 
address following the PEI’s review of the applications. 
In June we received the PEI’s review of the Pollinex
®
 
Quattro Grass Complete 0.5ml application for the MAA 
which had been submitted in March 2009. PEI have 
raised a number of questions on the MAA and requested 
clarification of several points. Allergy Therapeutics has 
studied the report in detail and believes that the questions 
can be satisfactorily addressed and will be submitting  
its response prior to the deadline at the end of  
November 2011. 
Meanwhile, two highly significant events have taken  
place in the Americas. Firstly, in the United States,  
the Company met the FDA in March 2011 to discuss  
the lifting of the clinical hold. The Pollinex
®
 Quattro  
(MATA MPL) development programmes have been  
on hold in the US since July 2007 following an adverse 
event in a patient who had previously participated in 
one of the Phase 3 studies and pending a review of the 
Monophosphoryl Lipid A (MPL). Allergy Therapeutics 
submitted a complete response to the FDA including an 
extensive safety review with external expert evaluation,  
an overall assessment of the potential benefits and risks  
of the product and a proposed way forward. At the 
meeting, the FDA agreed that we had addressed each  
of the hold issues and stated their intention to lift the  
clinical hold on all three programmes (Grass, Ragweed  
& Tree). The FDA agreed in principle to the proposed  
plan presented by the Group and we are now preparing 
detailed protocols for discussion with the FDA to  
officially lift the hold; these will be submitted by  
December 2011.
The Group has made great strides towards developing its potential  
in Latin America. 
Research & Development 29 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Secondly, within the last year, the Group has made  
great strides towards developing its potential in Latin 
America. This has been a real team effort within the Group 
and with our advisors on two continents to understand 
the medical and regulatory requirements within the key 
territories of Argentina, Columbia, Chile and Venezuela,  
to adapt the product portfolio accordingly and to supply 
the appropriate products and supporting information.  
We look forward to adapting this approach for use in  
other Emerging Markets.
In other markets, a dossier was submitted in Switzerland 
for Pollinex
®
 Quattro Grass and we continue to supply the 
Italian Regulatory Authority (AIFA) with the information 
requested for the eventual registration of our products  
on the market in Italy.
Our Product Pipeline
Pre-Clinical
Japanese Cedar
Phase 1
Sublingual MPL
Phase 2
Trees 
(US/Canada/
Europe)
Phase 3
Grasses (US/
Canada)
Ragweed (US/
Canada)
Registration
Grasses 
(Europe)
Research & Development 30 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Financial Review
The acquisition of the Group’s Swiss  
distributor, Teomed AG, has progressed  
well and this has helped support the results  
in the period by adding £2.1m in revenue.
Financial Review 31 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Financial  
Review
Financial Review 32 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
The Group’s strategy, to exploit its sales and force through 
complementary product sales, was launched during the year. 
A number of commercial initiatives have started and whilst 
revenues from these initiatives are small in the current year, 
growth is expected in the future.
Ian Postlethwaite   
Finance Director   
16 September 2011
The following section should be read in conjunction with the 
financial statements and related Notes on pages 40 to 103.
Overview of the business model 
We are a specialist fully integrated pharmaceutical 
company that is focused on the allergy vaccine sector. 
We concentrate on specialist products used by allergists, 
dermatologists, paediatricians and Ear Nose and Throat 
(ENT) doctors who treat people for Allergic Rhinitis.
The results for the twelve months to 30 June 2011  
have seen the Group posting another operating profit, 
following its maiden operating profit in the prior year,  
of £0.1m (2010: £1.5m). The relative reduction in 
performance in 2011 reflects weaker German revenue  
and the lower average Euro versus Sterling exchange rate.
Revenues
We market and sell allergy vaccines mainly in Europe,  
South Korea and Canada and since the year end have 
started marketing in Latin America. Germany is our most 
important market, accounting for 66% of our revenue,  
a reduction from the prior year (74%). Our revenues 
derive principally from sales of our own products,  
generally through our own sales forces but also through 
distributors. The key product is Pollinex
®
 Quattro, 
accounting for approximately 50% of sales.
Gross sales for the period, before the statutory sales  
rebate in Germany of £1.4m (2010: £1.3m), were £43.0m 
(2010: £42.0m). This represents an increase of 5% over  
the previous year at a constant currency. However, given 
that most of the Group’s sales are in Euros, the weaker  
average Euro rate to Sterling during the year of 1.17 
compared to the average rate in the prior year of 1.14  
has had a negative impact on sales limiting the growth  
rate to 2% and the increase in sales to £1m. This growth  
is driven primarily by sales in the new markets of 
Switzerland and the Netherlands, mitigating the weaker 
effect of the lower sales in Germany. From a product 
perspective, sales of new licensed in products have 
contributed most to the growth. After the German  
statutory rebate, Group revenue increased by 2% to  
£41.6m (2010: £40.8m).
The acquisition of the Group’s Swiss distributor, Teomed 
AG, has progressed well and this has helped support the 
results in the period by adding £2.1m in revenue. 
Growth in the remainder of the Group’s markets, excluding 
Germany, was good with a constant currency increase of 
15%. These performances helped mitigate the weaker 
German allergy vaccine market where units sold during 
the period declined in the 12 month period to June by 6% 
and gross sales in Germany declined by 5% at constant 
Financial Review 33 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
currency rates. The market in Germany has declined for the 
first time in the Group’s history as a result of various factors 
changing in the market place, including the introduction of 
a new regulatory environment, the Therapeutic Allergen 
Regulation (TAV), which has led to the withdrawal of certain 
product ranges and also pressures from the German health 
insurance companies on the prescribing doctors to reduce 
their spending. Moreover, the pollen count last year was 
lower than normal in most areas of Germany.
The Group’s strategy, to exploit its sales force 
infrastructure through complementary products sales, 
was launched during the year. A number of commercial 
initiatives have started, including in-licensing Anapen
®
,  
(an adrenaline injector), DAP , (a penicillin allergy  
diagnostic) and co-promoting Avamys from GSK in 
Germany. Whilst revenues from these initiatives are  
small in the current year, growth is expected in the future.
Gross profit
As a consequence of lower than expected sales in Germany, 
where the Group benefits from its highest selling prices 
and a weaker Euro to Sterling exchange rate, gross profit 
decreased by 4% to £28.3m (2010: £29.6m), representing 
a gross margin of 68% (2010: 73%) of revenue. This impact 
was compounded by an increase in cost of goods to £13.2m 
(2010: £11.2m). This was generally a result of the prior year 
cost of goods charge benefiting from some one-off  
events and higher manufacturing compliance costs. 
To combat the impact on the gross margin, as soon as 
the Group became aware of the weakness in the German 
market, a decision was made to reduce the head count by 
approximately 10%. The majority of those affected were 
based in the manufacturing and support departments. 
Although this is regrettable for those people affected  
it was essential to take such measures to protect the  
Group’s profitability to ensure its long term financial  
health. As a consequence, the cost savings from this 
exercise should benefit margins for the future.
Financial Review 34 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Operating expenses
Despite the reduction in total headcount, investment and 
head count in sales and marketing, the major component of 
distribution costs has not been adversely impacted. This is 
due to the strategy of improving our marketing capabilities 
in all of our key markets. Total distribution costs increased 
to £17.5m (2010: £16.1m), an increase of 9% over the 
previous year. Administration costs of £9.2m (2010: 
£10.2m) were lower by £1.0m than in the previous year due 
primarily to various cost saving initiatives taking effect and 
despite taking on further overheads in our new markets.
Research and development costs decreased again  
during the year to £1.7m (2010: £2.2m) as the 
development activity for the MPL based vaccine  
range has now completed its current programme.  
Other income represents the gain on bargain purchase 
released as a consequence of the purchase of the  
Swiss distributor being at a price below the fair value  
of the net assets acquired. In the prior year, other income 
came from funds received from a partner to build in-house 
specific manufacturing plant.
The operating profit for the period was £0.1m (2010: 
£1.5m), lower than the previous year due principally to  
the impact of foreign exchange with a £0.8m charge 
(2010: £nil) for the fair valuation of the foreign exchange 
forward contracts outstanding at the balance sheet date 
resulting in a charge in administration expenses.
Finance expenses are significantly higher than the prior 
year at £2.4m (2010: £1.6m) primarily due to a higher 
revaluation loss of £1.3m (2010: £0.1m) on the Euro 
denominated loan as a consequence of the year-end 
Euro:Sterling exchange rate strengthening against the  
rate used at the prior year end from 1.23 to 1.11.
During the previous year a £0.8m research and 
development tax credit was received which related  
to spend in the prior financial year, offset by a small  
tax charge in Germany. In the current year the small tax 
charge relates to the German and Italian subsidiaries. 
The loss after tax for the year was £2.7m (2010: profit 
£0.6m) reflecting the lower operating profit and higher 
finance charges.
Spending on capital items was broadly in line with the 
charges for depreciation and amortisation in the year. 
Intangible assets however have increased by £1.1m, 
to £4.4m due mainly to the acquisition of the Swiss 
subsidiary.
Net current assets excluding cash and cash equivalents 
are £2.7m (2010: £0.3m). This increase of £2.4m is 
principally due to higher debtors in Germany and additional 
trade debtors in the new markets of £0.5m offset by a 
higher foreign exchange derivative fair valuation creditor  
Financial Review 35 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
of £0.8m. Although net current assets excluding cash  
are higher, due to an increase in net debt, net assets  
have decreased by £1.7m to £2.1m during the year.
Net cash generated by operations for the year was an 
outflow of £1.7m (2010: inflow £1.1m) and was impacted 
by the £2.4m increase in net current assets excluding 
cash and cash equivalents.
Financing
The weakening of the average rate of the Euro against 
Sterling during the year has been detrimental to the Group’s 
performance. Over 85% of our sales are denominated in 
Euros whereas roughly 50% of costs are incurred in the 
United Kingdom and denominated in Sterling. Although the 
Euro weakened against Sterling on average over the year, 
it actually closed stronger at the balance sheet date against 
the prior year closing rate and this generated two further 
negative effects on the Income statement: forward foreign 
exchange contracts maturing after the balance sheet date 
when fair valued at the balance sheet date generated a 
charge of £0.8m and similarly the Euro denominated loan 
was revalued up at the balance sheet date charging the 
Income Statement with £1.3m.
Furthermore, there have been changes in the 
reimbursement regime in Germany, our key market. 
Notably, there has been a price freeze on reimbursed 
products from the prices in the market on 1 August 2009 
and the rebate paid to sick-funds increased from August
2010 from the previous level of 6% to 16%, although  
the Company has received an exemption from this  
rebate rise until the end of the calendar year.
The Group meets its ongoing financing obligations 
through a combination of a term loan facility of €8.1m 
(2010: €11.0m), a revolving credit facility of €15.5m 
(2010: €15.5m) and a small bank overdraft. At the balance 
sheet date a net amount of £15.2m was drawn on these 
facilities (2010: £11.7m). The Directors believe that the 
Company and the Group will have access to adequate 
facilities for the foreseeable future and accordingly,  
they continue to adopt the going concern basis in 
preparing the full year results.
Ian Postlethwaite 
Finance Director 
16 September 2011
Financial Review 36 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Meet the Board
Meet the Board 37 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Meet the Board
Meet the Board 38 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Peter Jensen 
Non-Executive Chairman (60)
Appointed to the Board in 
October 2010 and appointed  
Non-Executive Chairman on  
1 January 2011.
As Non-Executive Chairman,  
Peter is responsible for leadership of the Board by ensuring 
Board effectiveness, good corporate governance and 
effective communication with shareholders.
Peter held a number of senior roles in his 21 years  
with SmithKline-Beecham. Between 1994 and  
1998 he was Chairman of Consumer Healthcare  
Europe and between 1998 and 2001 he held the  
position of President of Worldwide Supply Operations,  
based in Philadelphia.
Since leaving the company at the time of the merger 
with Glaxo, Peter has held a number of non-executive 
director and chairman roles for various public and private 
companies. These include Domino Printing Sciences 
plc, Glenmorangie plc, Genetix Group plc and Celsis 
International plc.
In addition to his role at Allergy Therapeutics,  
Peter is currently the Senior Independent Director  
at Victoria plc, a Director at Newmarket Racecourses  
and The Osborne Studio Gallery and Chairman of 
Screendragon Limited, The Home of Horseracing  
Trust Limited and The British Sporting Art Trust.
Peter has chaired the Nomination Committee from  
1 January 2011.
Manuel Llobet 
Chief Executive Officer (47) 
Manuel Llobet joined the  
Group in September 2009 
following the successful 
refinancing in which Azure 
Ventures Limited was the 
main investor. Prior to this 
appointment, Manuel was the Principal Consultant  
for Biohealth LLC and CEO of International Operations  
of the Weinstein family’s group of companies. 
 
Manuel was responsible for international development  
of the Weinstein family’s group of pharmaceutical 
companies in 20 countries. Mr Llobet has over ten  
years experience working in the pharmaceutical  
industry, primarily in South America and has served  
as Executive Director of Corporación Drokasa where  
he was responsible for a US$25 million AAA-rated  
bond issue to finance the group’s expansion plans;  
CEO of Laboratorios Andrómaco where he led the 
Company to an IPO on the Santiago Stock Exchange;  
and Business Development Manager for Laboratorio  
Chile. Manuel participated in the Executive Program  
at the Graduate Business School of Stanford University  
and has an MBA from IESE, Universidad de Navarra  
in Barcelona. Manuel also has degrees in Industrial 
Business Management and Chemical Engineering  
from Universitat Ramon Llull in Barcelona.
As Chief Executive Officer, Manuel is responsible  
for the executive management of Group operations, 
investor relations, and implementation of the Board’s 
collective decisions overseeing all operational aspects  
of the Group and directing the long-term strategy.
Board of Directors
Meet the Board 39 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Ian Postlethwaite 
Finance Director (48) 
Ian Postlethwaite 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.
Stephen Smith 
Non-Executive Director (58)
 
Stephen Smith is a Chartered 
Management Accountant,  
Fellow of the Association of 
Corporate Treasurers and Member 
of the Institute for Turnaround. 
Since 1995, he has operated as 
an independent executive, Non-
Executive Director 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 6 years as Group Treasurer of The  
Rank Organisation and 3 years as Group Finance Director  
of a quoted hotel company. 
Stephen chairs the Audit and Remuneration Committees,  
is a member of the Nomination Committee which he 
chaired until 1 January 2011 and is the Senior Non-
Executive Director.
Alejandro Weinstein Jr 
Non-Executive Director (53)
Alejandro Weinstein Jr. is  
CEO of Laboratorios Recalcine 
Chile, a position held since  
2000, and is responsible for  
the entire Weinstein family  
group of pharmaceutical 
companies. Alejandro has been responsible for transforming 
the Recalcine Group from a local Chilean pharmaceutical 
Company into a global pharmaceutical Company, recently 
floated on the Santiago Stock Exchange, with a presence 
in 20 countries and double digit sales growth for the 
last five years. Alejandro has been active in developing 
and managing several businesses and start ups in the 
pharmaceutical industry and the healthcare sector, including 
Genomika Foundation, a stem cell research organisation; 
Biomedical Research Consortium, a joint venture  
between a biotech R&D Company and a university;  
Vidacel and Banco de Vida, public and private stem cell 
banks in Chile; and several other joint ventures with local  
and foreign R&D companies. Alejandro has a BA, is a 
Certified Public Accountant and participated in the  
Owner/President Management Program (OPM) at  
Harvard Business School.
Alejandro sits on the Nomination Committee.
Ignace Goethals 
Non-Executive Director (66) 
Ignace stepped down as 
Chairman on 1 January 2011  
but remains on the board as  
a non-executive director.
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 
Worldwide 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. Ignace sits on the Audit, 
Nomination and Remuneration Committees.
Virinder Nohria 
Non-Executive Director (57)
Virinder works as a strategic 
consultant in international  
drug development. 
He has led teams in many 
successful interactions with 
regulatory bodies in several 
countries, particularly the US FDA. He is founder and Chief 
Medical Officer of Alaven Pharmaceutical LLC, a privately 
held specialty pharmaceutical Company in the areas of 
gastroenterology and women’s health, which was acquired 
by Media AB in August 2010. Virinder served as Chief 
Medical Officer and Vice President of Xcel Pharmaceuticals, 
Inc., a US specialty pharmaceutical Company until the sale 
of the Company to Valeant Pharmaceutical International 
in early 2005. Prior to joining Xcel, Virinder held several 
positions in biotechnology and pharmaceutical companies 
including UCB Pharma and Eli Lilly and Company. Virinder 
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 US and has an affiliation  
with Mercer University. 
Virinder sits on the Remuneration Committee.
Meet the Board 40 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Directors’ Report 
The Directors present their annual report  
and the audited financial statements  
for the 12 months ended 30 June 2011. 
The financial statements are for Allergy 
Therapeutics plc (the “Company”)  
and its subsidiary companies  
(together, the “Group”). 
Directors’ Report  41 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Directors’
Report 
Directors’ Report  42 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Directors’ Report  
The Directors present their annual report and the 
audited financial statements for the 12 months ended 
30 June 2011. 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 and also licenses in related products. 
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, Spain,  
The Netherlands and Switzerland and representative 
offices in Poland and the Slovak Republic.
Results 
The loss for the year after taxation was £2.7m  
(2010: profit £0.6m). The results for the year are set  
out on page 56 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 page 8, the Chief Executive’s Review on pages 12 to 
17 and the Financial Review on pages 30 to 35 and are 
incorporated in this report by reference.
Fair review of the Group’s business  
and Key Performance Indicators  
The management consider the Key Performance Indicators 
(KPI’s) of the business to be revenue, operating profit, 
EBITDA, net cash generated and staff turnover.
Revenue in the year increased to £41.6m compared  
to £40.8m in the previous year, an increase of 2%.
The operating profit was £0.1m (2010: profit £1.5m),  
the reduction being largely a consequence of adverse 
foreign exchange impacts.
EBITDA for the year was £1.8m (2010: £2.9m) with the 
current year being impacted by the fair valuation of foreign 
exchange hedge contracts of £0.8m (2010: £0.0m).
Net cash generated by operations for the year was an 
outflow of £1.7m (2010: inflow £1.1), due mainly to a 
£2.4m increase in net current assets excluding cash  
and cash equivalents.
Directors’ Report  43 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Staff turnover, including redundancies and temporary 
staff, in the UK during the year was 24.1% (2010: 18.7%), 
compared to an average UK staff turnover rate of 12.4% 
(2010: 19.2%), (data supplied by the Chartered Institute of 
Personnel and Development). Excluding redundancies and 
temporary staff, the turnover rate was 9.2% (2010: 8.7%).
A more detailed 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 page 8, the Chief Executive’s Review on 
pages 12 to 17 and the Financial Review on pages 30 to 35 
and are incorporated in this report by reference.
Description of the principal risks  
and uncertainties facing the Group 
In common with many pharmaceutical companies  
the Group faces a number of risks and uncertainties. 
Internal controls are in place to help identify, manage  
and mitigate these risks. The main risks have been 
identified as follows:
Risk that the Group is unable to provide effective 
commercially successful products 
Continued development of viable new products and  
their successful registration and marketing is key to  
the success of the Group and is a costly and lengthy 
process. Rationale for new product development 
may indicate potential, however following significant 
investment there is no guarantee that a product will  
be successful. Board approval is sought for all 
development projects and business cases. 
The registration of Pollinex
®
 Quattro in Europe is  
a key priority.
The formal lifting of the clinical hold by the FDA in the  
USA on Pollinex
®
 Quattro is subject to agreeing protocols 
for each program. A key risk facing the Group with respect 
to new development in the US is agreeing future clinical 
activity and securing a partner to help finance the activity. 
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.  
The Group maintains product liability insurance and 
ensures systems and processes relating to the 
manufacture of it’s products are compliant and regularly 
reviewed. It has a pharmacovigilence team in place  
to monitor and address any safety issues arising.
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, could hinder the commercialisation of some 
of its products. The Group has internal and external patent 
experts. Internal controls are in place to avoid disclosure 
of patentable material and to protect existing patents. 
Arrangements are also in place to notify the Group of  
any infringements of our intellectual property which it 
would defend robustly.
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 
licensees on favourable terms or recruit the right staff 
to help develop and market its products. Approximately 
66% of Group sales are made in Germany and therefore 
Group results are sensitive to German legislation and 
government policies, and performance of the German 
market. To mitigate this risk, the Group intends to  
expand it’s revenue outside Germany.
Pharmaceutical products are subject to far greater  
controls on price in certain markets than other products 
in the marketplace. Some governments intervene directly 
in setting price levels and rebates paid into public sick 
funds, especially with an increasing aged population in 
developed countries. The Group cannot accurately predict 
when, where and how such controls and restrictions may 
be altered, either to its benefit or detriment, but it does 
conduct regular reviews of pricing and reimbursement 
levels and assessments of healthcare reforms on pricing.
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.  
The Board actively reviews the financial requirements  
of the Group on a regular basis. 
A majority of the Group’s sales are denominated in 
Euros whilst the manufacturing and most corporate 
administration costs are in the UK and therefore the  
Group is exposed to volatility in exchange rate 
fluctuations. The Group monitors exchange rates  
regularly and implements hedges to mitigate such risks.
 
Directors’ Report  44 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Clinical and regulatory 
The Group operates in a highly regulated environment 
for the testing, manufacture and supply of its products. 
Compliance with clinical and regulatory requirements 
within the EU affects not only the cost of product 
development and resource use, but also the time 
required to comply. Increased regulation may require 
products to be amended to comply with regulations and/
or products have to be withdrawn, reducing revenues 
and/or increasing costs. Regulatory authorities such as 
the FDA are increasingly focussed on the benefit/risk 
of pharmaceutical products and safety data making it 
more onerous to obtain regulatory approval. Compliance 
systems are in place to ensure all clinical, manufacturing 
and marketing activities comply with regulations in the 
EU and other territories. Standard operating procedures 
are maintained to ensure compliance with good 
manufacturing practice. The Group maintains constant 
awareness of new regulations and engages with key 
Regulatory Authorities whenever possible to contribute  
to trends in regulatory thinking.
Financial risk management objectives and policies 
Note 24 in the Notes to the Financial Statements gives 
details of the Group’s objectives and policies for risk 
management of financial instruments.
Development and performance of the Group’s business 
during the financial year 
For a full review of development and performance of the 
Group during the financial year, please refer to the Chief 
Executive’s Review on pages 12 to 15 and the Financial 
Review on pages 30 to 35. 
Position of the Group’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. Infrastructure setup in Latin America 
will provide for growth opportunities beyond the current 
European focus.
Main trends and factors likely to affect the future 
development, performance and position of the  
Group’s business 
Allergy remains a fast growing market with largely unmet 
market needs in many countries. The allergy “epidemic” 
continues to grow and it is increasingly recognised that  
for many people suffering from hay-fever, it is far from 
being a trivial matter. There are currently few competitors 
in the niche market in which the Group operates.  
The Board is confident of achieving registration within 
Europe for Pollinex
®
 Quattro Grass and expects further 
expansion of product sales in the Emerging Markets.
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 370 people in 7 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, discretionary performance based bonuses  
and long term incentive programmes. The Board is 
committed to retaining 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. 
The Group places considerable value on the involvement  
of its employees and has continued to keep them 
informed on matters affecting them as employees  
and on the various factors affecting the performance of 
the Group. This is achieved through formal and informal 
meetings and email updates. Family friendly employment 
policies conform to statutory requirements and flexible 
working practices are adopted where viable. 
The Group implements equality of opportunity in all 
of its employment practices, policies and procedures. 
Employees are highly valued and their rights and dignity 
are respected. The Group practices equal treatment 
of all staff and potential staff irrespective of their race, 
creed, colour, sexual orientation, nationality, ethnic origin, 
religion, disability, age, gender or marital status. The equal 
opportunities section of the Staff Handbook covers all 
permanent and temporary employees, job applicants, 
agency staff, consultants and contractors.
A full review of the Group’s activities, important events 
affecting the Group and its development programme  
is contained in the Chief Executive’s Review on pages  
12 to 15 and the Financial Review on pages 30 to 35,  
both of which form part of this report.
Corporate social responsibility 
The Directors recognise the increasing importance of 
corporate social responsibility and endeavour to take 
into account the interests of the Group’s stakeholders, 
including its investors, employees, customers, suppliers 
and business partners when operating its business. 
The Group is committed to empowering responsible 
employees who display sound judgement and awareness 
of the consequences of corporate decisions and actions, 
and who act in an ethical and moral way.
Directors’ Report  45 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
The dates of appointment above refer to appointment  
as Directors of Allergy Therapeutics plc. All the Directors, 
with the exception of Dr Nohria, Mr Llobet, Mr Jensen 
and Mr Weinstein were previously Directors of Allergy 
Therapeutics (Holdings) Limited.
Mr Gratz and Dr Holdich resigned as directors on 30 
September 2010.
Under a Compromise Agreement and Letter of 
Appointment between Mr Carter and the Company  
dated 11 June 2009, Mr Carter stepped down as  
Chief Executive Officer and became a Non-executive 
Director on 1 September 2009. Mr Carter resigned  
as a Non-executive director on 31 December 2010  
Under a Service Agreement dated 11 June 2009 between 
Mr Manuel Llobet and the Company, Mr Llobet assumed 
the role of Chief Executive Officer on 1 September 2009 
and relinquished his position as a Non-Executive Director  
held from 1 July 2009.
Under a Letter of Appointment dated 11 June 2009,  
Mr Alejandro Weinstein was appointed a Non-Executive 
Director of the Company effective from 1 July 2009.
Directors and Directors’ interests 
The Directors who held office during the period were as follows:      
   
   Date of appointment Date of resignation
 Peter Jensen Non-Executive Chairman** 1 October 2010 
 Manuel Llobet Chief Executive Officer 1 July 2009 
 Ian Postlethwaite Finance Director  1 July 2004 
 Stephen Smith Non-Executive Director  8 September 2004
 Alejandro Weinstein Non-Executive Director 1 July 2009 
 Ignace Goethals Non-Executive Director** 8 September 2004 
 Virinder Nohria Non-Executive Director 1 November 2005
 Thomas Holdich R&D Director  8 September 2004 30 September 2010
 Christian Grätz Market operations Director 8 September 2004 30 September 2010
 Keith Carter Non-Executive Director 1 September 2009* 31 December 2010
 
*  Refers to date of appointment as a Non-Executive Director 
** On 1 January 2011, Peter Jensen became Chairman replacing Ignace Goethals who remains on the board  
 as a non-executive director
   At beginning of year:  At end of year:  
 Name Ordinary Shares Options & LTIPs Ordinary Shares Options & LTIP
  
 Peter Jensen - - 100,000 - 
 Manuel Llobet* 3,125,000 750,000 3,125,000 1,470,000 
 Ian Postlethwaite  493,000 2,833,191 493,000 3,023,500 
 Stephen Smith 756,513 150,000 756,513 150,000 
 Alejandro Weinstein 140,568,287 - 140,568,287 - 
 Ignace Goethals 4,897,912 150,000 5,013,109 150,000 
 Virinder Nohria 462,160 100,000 512,160 100,000
 
 
* All or part are shares held in trusts of which the Director is a beneficiary. 
The Directors who held office at the end of the financial 
year had the following interests in the ordinary shares of 
the Company:
Directors’ Report  46 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
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.
Structure of the Company’s capital 
The Company’s share capital which is traded on the AIM 
market of the London Stock Exchange comprises a single 
class of ordinary shares of 0.1 pence each, which each 
carry one voting right and all rank equally with each other. 
At 30 June 2011 310,771,614 shares were allotted and 
fully paid. Details of movements in the Company’s share 
capital during the period are shown in Note 27 to the 
financial statements.
Details of employee share schemes are set out in Note 
28 to the financial statements. Participants in employee 
share schemes have no voting or other rights in respect 
of the shares subject to their awards until the options are 
exercised or conditional shares fully vest, at which time 
the shares rank pari passu in all respects with shares 
already in issue. 
Substantial shareholders 
At 31 August 2011 the Company had been notified  
of the following major interests, each representing  
3% or more of the existing issued ordinary share capital: 
 Shareholder Ordinary shares % held
 
 Yissum Holdings 137,491,788 44.24 
 Limited 
 
 M&G Investment  17,507,764 5.63 
 Management  
 
 Southern Fox 15,816,666 5.09 
 Investments 
 
 Fidelity Investments 15,124,376 4.87 
 
 Henderson Global 11,344,768 3.65 
 Investors 
 
 Smithkline Beecham 10,118,748 3.26 
 Biologicals Manufacturing  
 S.A
 
 
Changes to interest in own shares
Neither the Company nor any Employee Benefit Trust 
holds any shares in the Company. 
The Board
 Members Director since  Meeting 
   attendance 
   2010-11
 
 Peter Jensen October 2010 13 / 13 
 
 Manuel Llobet July 2009 18 / 18 
 
 Ian Postlethwaite July 2004 18 / 18 
 
 Stephen Smith September 2004 18 / 18 
 
 Alejandro Weinstein July 2009 12 / 18 
 
 Ignace Goethals September 2004 18 / 18 
 
 Virinder Nohria November 2005 15 / 18 
 
 Tom Holdich September 2004  5 / 5 
 
 Christian Graetz September 2004  4 / 5 
 
 Keith Carter September 2004  7 / 8
 
The Board is led by the Chairman, who is non  
executive and comprises the Chief Executive Officer,  
the Finance Director, and four other Non-Executive 
Directors. Biographical details of all Board members are 
shown on pages 38 and 39. The roles of Chairman and 
Chief Executive Officer are separate. The Directors feel 
that given the current size of the Group, 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 Group.
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  47 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
The Board delegates certain other responsibilities  
to committees, details of which are set out below.
Board Committees
The Company has an Audit Committee, a Remuneration 
Committee and a Nominations Committee all with written 
terms of reference including formally delegated duties  
and responsibilities. The chairman of each committee 
reports directly to the Board. 
The Audit Committee comprised Stephen Smith (Chairman) 
and Ignace Goethals. The Audit Committee 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, reviewing the reports 
from the auditors relating to the financial statements and 
monitoring the internal control function.
The Remuneration Committee comprised Stephen  
Smith (Chairman), Ignace Goethals and Virinder Nohria. 
The Remuneration Committee reviews the compensation 
policy and strategy for the Group as a whole and the scale 
and structure of the executive Directors’ remuneration 
packages including the terms of their service contracts. 
No Director takes part in the discussion of his own 
remuneration. This committee is also responsible for  
grant of shares under the Group’s Long Term Share 
Incentive Plan.
The Nomination Committee comprises Peter Jensen 
(Chairman), Ignace Goethals, Stephen Smith and Alejandro 
Weinstein. The Committee held three meetings during  
the past financial year. The Nominations Committee’s 
principle purpose is to consider and proffer proposals for 
the composition and size of the Board and its Committees 
as well as Board refreshment and succession planning.
Full details of Directors’ remuneration and a statement 
of the Company’s remuneration policy are set out in the 
Directors’ Remuneration Report on pages 50 to 53.
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 Group has an internal audit function, 
reporting directly to the Audit Committee, which carries 
out reviews periodically of the Company’s subsidiaries. 
The Group also has a budgeting and reporting system 
in place, with results compared to annual budgets and 
quarterly forecasts using variance analysis.
Shareholder relations
The Company maintains a policy of open dialogue  
with all shareholders to ensure that the objectives of 
the Group are understood. The Chief Executive Officer 
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 
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
Annual General Meeting
The notice convening and giving details of the Annual 
General Meeting of the Company accompanies this report.
Engagement of auditor for the supply of non-audit 
services
It is the Group’s policy that it will only engage the Group’s 
auditor to supply other professional services to the Group 
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 Group,  
a mutuality of interest is created or the external auditor  
is put in the role of advocate for the Group.
Research and development
The Group will continue it’s policy of investment in 
research and development, although this will be at a lower 
level of spend than that seen a few years ago, in order to 
improve its competitive position in the market. However, 
with the focus in Germany on a portfolio of registered 
products it is expected that additional clinical information 
will be required on some of these products over the 
next few years to 2017. In accordance with International 
Financial Reporting Standards (IFRS), during the year the 
Group expensed to the income statement £1.7m (2010: 
£2.2m) on research and development. Further details  
on the Group’s research and development are included  
in the Chief Executive’s Review on pages 12 to 15.
Going concern
The Group’s business activities, together with the factors 
likely to affect its future development, performance and 
position are set out in the Chairman’s Statement on page 
8, the Chief Executive’s Review on pages 12 to 15 and 
the Financial Review on pages 30 to 35. The financial 
Directors’ Report  48 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
position of the Group, its cash flows, liquidity position 
and borrowing facilities are also described in the Finance 
Director’s Finance Review on pages 30 to 35. In addition, 
Note 24 to the financial statements includes the Group’s 
objectives, policies and processes for managing its capital, 
its financial risk management objectives, details of its 
financial instruments and its exposures to foreign currency 
risk, interest rate risk and liquidity risk.
After making appropriate enquiries, which included a 
review of the annual budget, considering the cash flow 
requirements for the foreseeable future, noting that the 
borrowing facility was not due for renewal until 2014 and 
the effects of sales and foreign exchange sensitivities 
on the Group’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.
Market value of land and buildings 
All freehold properties are stated at market value.  
The Group’s policy is that a full revaluation is carried out 
every five years with an interim valuation carried out in  
the third year after each full valuation. In the intervening 
years the directors review the carrying values of the 
freehold land and buildings to ensure that there have  
been no material variations.
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 generally 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. During the last quarter of the year terms 
with some trade creditors were temporarily renegotiated, 
although less so than in the previous year. Shortly after the 
year end normal terms were resumed. Whilst the Company 
had no trade creditors, the number of trade creditor days 
for the Group at 30 June 2011 was 62 days (2010: 72 days).
Dividend 
The Company is unable to declare a dividend.
Charitable and political contributions 
The Group made no political or charitable contributions 
during the year.
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 Group information on the intranet. 
Information about the Group is also available on the 
internet at www.allergytherapeutics.com
Health & Safety 
The Group is committed to 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 & 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 financial statements in accordance  
with applicable law and regulations.
Company law requires the directors to prepare financial 
statements for each financial year. Under that law the 
directors have elected to prepare the financial statements 
in accordance with International Financial Reporting 
Standards as adopted by the European Union (IFRSs).
Under company law the directors must not approve the 
financial statements unless they are satisfied that they give 
a true and fair view of the state of affairs and profit or loss 
of the group for that period. In preparing these financial 
statements, the directors are required to:
•	 select suitable accounting policies and then apply them  
 consistently;
•	 make judgments and accounting estimates that  
 are reasonable and prudent;
•	 state whether applicable IFRSs have been followed,  
 subject to any material departures disclosed and  
 explained in the financial statements;
•	 prepare the financial statements on the going concern  
 basis unless it is inappropriate to presume that the  
 company will continue in business.
Directors’ Report  49 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
The directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the company’s transactions and 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. They are also responsible 
for safeguarding the assets of the company and hence for 
taking reasonable steps for the prevention and detection  
of fraud and other irregularities.
In so far as each of the directors is 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 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 financial statements may differ from legislation in  
other jurisdictions.
Statement of Directors’ responsibilities  
– Company Financial Statements 
The directors are responsible for preparing the Annual 
Report and the financial statements in accordance with 
applicable law and regulations.
Company law requires the directors to prepare financial 
statements for each financial year. Under that law the 
directors have elected to prepare the financial statements 
in accordance with United Kingdom Generally Accepted 
Accounting Practice (United Kingdom Accounting 
Standards and applicable laws). Under company law the 
directors must not approve the financial statements unless 
they are satisfied that they give a true and fair view of  
the state of affairs and profit or loss of the company  
for that period. In preparing these financial statements,  
the directors are required to:
•	 select suitable accounting policies and then apply  
 them consistently;
•	 make judgments and accounting estimates that  
 are reasonable and prudent;
•	 state whether applicable UK Accounting Standards  
 have been followed, subject to any material departures 
 disclosed and explained in the financial statements;
•	 prepare the financial statements on the going concern  
 basis unless it is inappropriate to presume that the  
 company will continue in business.
The directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the company’s transactions and 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 2006. They are also 
responsible for safeguarding the assets of the company 
and hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
In so far as each of the directors is 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 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 financial statements may differ from legislation in  
other jurisdictions.
Auditor 
Grant Thornton UK LLP offer themselves for 
reappointment as auditor in accordance with section 
489 of the Companies Act 2006. A resolution for their 
reappointment is to be proposed at the forthcoming  
Annual General Meeting.
By order of the Board on 16 September 2011.
Ian Postlethwaite 
Finance Director 
16 September 2011
Directors’ Report  50 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
The Remuneration Committee 
The Remuneration Committee comprised Stephen Smith 
(Chairman), Ignace Goethals and Dr Virinder Nohria.  
The Committee held 6 meetings during the past financial 
year. 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. 
 Members Member Attendance 
  since at meetings  
   2010-11
  
 Stephen Smith November 2004 6 / 6 
 
 Ignace Goethals November 2004 6 / 6 
 
 Virinder Nohria November 2005 5 / 6
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 is reviewed annually as at 1 October, taking 
into account personal performance, and benchmarked 
against the Comparator Group.
(ii) Taxable benefits 
Taxable benefits represent the provision of a car allowance 
and private medical insurance.
(iii) Share options 
No share options were granted in the year. 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) Limited  
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 2011 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 Group’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 
During the year ended 30 June 2011 no offer was made 
to employees or executives under the SAYE scheme. 
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 Group 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 Manuel Llobet 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. 
(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 Manuel Llobet for whom 
the Company contributes 15% of salary (subject to HMRC 
cap). Christian Grätz was a member of the Bencard Allergie 
GmbH pension scheme in Germany. 
 
Directors’ Remuneration Report
Directors’ Remuneration Report 51 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Service contracts
 
 Executive Directors Date of Notice 
   contract* period
   
 Manuel Llobet 1 July 2009 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 for Ian Postlethwaite and Tom Holdich  
refer to service contracts with Allergy Therapeutics   
(Holdings) Limited and for Christian Grätz, with 
Bencard  Allergie GmbH. The service contracts for   
Ian Postlethwaite and Tom Holdich were amended  
on 5  October 2004 to reflect the change of employer  
to Allergy Therapeutics plc.
Christian Grätz resigned as a Director with effect from  
30 September 2010 and resigned as an employee with 
effect from 31 March 2011.
Tom Holdich resigned as a Director with effect from  
30 September 2010.
 Non-Executive Directors Date of  Notice 
  contract period
   
 Ignace Goethals 8 September 2004 3 months 
 
 Stephen Smith 8 September 2004 3 months 
 
 Virinder Nohria 1 November 2005 3 months 
 
 Alejandro Weinstein 1 July 2009 3 months 
  
 Keith Carter 1 September 2009 3 months 
 
 Peter Jensen 1 October 2010  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.
Keith Carter resigned as a Non-Executive Director with 
effect from 31 December 2010.
Directors’ Remuneration Report 52 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Directors’ remuneration (audited information) 
Details of remuneration of those who served as directors during  
the year are set out below.
            
        Year ended 30 June 2010
  Basic Bonus Cash  Taxable Fees Total Pension Total Pension  
  salary  the year allowance benefits 
    in lieu of 
    pension 
  £ £ £ £ £ £ £ £ £
 
 Manuel Llobet 188,140 64,000 8,221 11,170 - 271,531 19,999 228,541 21,100 
 
 Ian Postlethwaite 148,099 31,080 - 10,782 - 189,961 14,809 199,202 14,484 
 
 Christian Grätz 139,758 - - 23,262 30,990 194,010 21,512 240,985 40,957 
 
 Tom Holdich 153,314 51,480 - 11,170 - 215,964 15,331 178,640 14,994 
 
 Peter Jensen 41,500 - - - - 41,500 - - - 
 
 Stephen Smith - - - - 36,000 36,000 - 36,000 - 
 
 Alejandro Weinstein 36,000 - - - - 36,000 - 36,000 - 
 
 Ignace Goethals 36,000 - - - - 36,000 - 36,000 - 
 
 Virinder Nohria  36,000 - - - - 36,000 - 36,167 - 
 
 Keith Carter - - - - 18,000 18,000 - 712,481 20,265
 
 Totals 778,811 146,560 8,221 56,384 84,990 1,074,966 71,651 1,704,016 111,800
Christian Grätz’ salary was paid in Euros and is shown here  
converted at a rate of £1:€1.1731 as at 30 June 2011. 
A severance payment of £30,990 was paid to Christian Grätz  
in the year. This figure is included in the fees column within  
the table above.
The audited information detailed above is summarised in  
Note 6 to the accounts.
Directors’ Remuneration Report 53 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Directors’ share options and LTIPs
 
  Options Options Options Options Directorship Options Sub- Exercise Expiry   
  held at 1 granted in exercised lapsed resigned held at 30 scription date from date 
  July 2010 the year in the year in the year in the year June 2011 price 
        pence
 
 Executive Directors       
 
 Manuel Llobet *750,000 - - -  *750,000 - - -  
  - *720,000 - -  *720,000 - - - 
 
 Ian Postlethwaite 400,000 - - -  400,000 30.0 03/06/2002 03/06/2012 
  1,500,000 - - -  1,500,000 5.0 17/12/2002 17/12/2012 
  163,500 - - -  163,500 18.5 18/10/2009 18/10/2019 
  *169,691  - *169,691  - - - - 
  *600,000 - - -  *600,000 - - - 
  - *360,000 - -  *360,000 - - - 
 
 Christian Grätz 1,400,000 - - - 1,400,000 - 5.0 18/12/2002 18/12/2012 
  188,500 - - - 188,500 - 18.5 18/10/2009 18/10/2019 
  *198,320 - - - *198,320 - - - - 
  *600,000 - - - *600,000 - - - - 
 
 Tom Holdich 97,400 - - - 97,400 - 18.5 18/10/2009 18/10/2019 
  *176,805 - - - *176,805 - - - - 
  *600,000 - - - *600,000 - - - -
 
 Non-Executive Directors      
 
 Stephen Smith 150,000 - - -  150,000 45.0 26/02/2005 26/02/2014 
 
 Ignace Goethals 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 
 
 Keith Carter 231,000 - - - 231,000 - 18.5 18/10/2009 18/10/2019
          
 Totals  7,475,216 1,080,000 - 169,691 3,492,025 4,893,500   
 
* Long Term Incentive Plan 
 
The aggregate amount of gains made by Directors upon the  
exercise of share options in the year ended 30 June 2011  
was £nil (year ended 30 June 2010 £153,813).
At 30 June 2011 the London Stock Exchange market value  
of shares was 14.0p per share. The range of values during  
the period from 1 July 2010 to 30 June 2011 was 6.88p  
to 17.25p per share.
Stephen Smith 
Chairman, Remuneration Committee
16 September 2011
Directors’ Remuneration Report 54 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
The Nominations Committee comprises Peter Jensen, 
Stephen Smith, Ignace Goethals and Alejandro Weinstein. 
The Committee has been chaired by Peter Jensen since 
1 January 2011 and was previously chaired by Stephen 
Smith. The Nominations Committee was established in 
September 2009 and held three meetings during the  
past financial year. Its principal purpose is to consider  
and proffer proposals for the composition and size of  
the Board and its Committees as well as Board 
refreshment and succession planning. 
 Members Member Attendance 
  since at meetings  
   2010-11
 
 Stephen Smith September 2009 3 / 3 
 
 Ignace Goethals September 2009 3 / 3 
 
 Alejandro Weinstein September 2009 3 / 3 
 
 Peter Jensen October 2010 1 / 1
When proposing appointments of Directors, the 
Committee considers the skills, knowledge and experience 
that a candidate possesses compared to the skill sets and 
experience of the Board as it currently stands. Selection 
of candidates also takes into consideration the breadth of 
knowledge that the Board has and that it may require to 
provide a well balanced environment which encourages 
scrutiny and appropriate challenge of the Executive 
management. Independence of Non-Executive Directors 
is of paramount importance being a cornerstone of good 
corporate governance.
The Committee’s principal focus during the year ended  
30 June 2011 was the change in composition of the 
board. A search for an additional non-executive director 
was undertaken with the assistance of Hanson Green and 
resulted in the appointment of Peter Jensen in October 
2010. Following other changes to the board recommended 
by the Committee the size of the board reduced from nine 
to seven and includes five non-executive directors three  
of whom are regarded as independent.
Peter Jensen 
Chairman, Nominations Committee
16 September 2011
Nominations Committee Report 
Nominations Committee Report  55 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
We have audited the group financial statements of  
Allergy Therapeutics plc for the year ended 30 June 2011 
which comprise the consolidated income statement, the 
consolidated statement of comprehensive income, the 
consolidated balance sheet, the consolidated statement 
of changes in equity, the consolidated cashflow statement 
and the related notes. The financial reporting framework 
that has been applied in their preparation is applicable law 
and International Financial Reporting Standards (IFRSs)  
as adopted by the European Union.
This report is made solely to the company’s members,  
as a body, in accordance with Chapter 3 of Part 16 of  
the Companies Act 2006. 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 auditor 
As explained more fully in the Directors’ Responsibilities 
Statement set out on page 48, the directors are 
responsible for the preparation of the group financial 
statements and for being satisfied that they give a true  
and fair view. Our responsibility is to audit and express  
an opinion on the group financial statements in accordance 
with applicable law and International Standards on 
Auditing (UK and Ireland). Those standards require us to 
comply with the Auditing Practices Board’s (APB’s) Ethical 
Standards for Auditors.
Scope of the audit of the financial statements 
A description of the scope of an audit of financial 
statements is provided on the APB’s website at  
www.frc.org.uk/apb/scope/private.cfm
Opinion on financial statements 
In our opinion the group financial statements:
•	 give a true and fair view of the state of the group’s   
 affairs as at 30 June 2011 and of its loss for the year  
 then ended; 
•	 have been properly prepared in accordance with IFRSs  
 as adopted by the European Union; and
•	 have been prepared in accordance with the   
 requirements of the Companies Act 2006.
Opinion on other matter prescribed by the  
Companies Act 2006 
In our opinion the information given in the Directors’ 
Report for the financial year for which the group financial 
statements are prepared is consistent with the group 
financial statements.
Matters on which we are required to report by exception 
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report 
to you if, in our opinion:
•	 certain disclosures of directors’ remuneration specified  
 by law are not made; or
•	 we have not received all the information and   
 explanations we require for our audit.
Other matter 
We have reported separately on the parent company 
financial statements of Allergy Therapeutics plc for  
the year ended 30 June 2011. 
Christian Heeger 
Senior Statutory Auditor for and on behalf of  
Grant Thornton UK LLP Statutory Auditor,  
Chartered Accountants Gatwick
16 September 2011
Independent Auditor’s Report to the Members of Allergy Therapeutics plc (Group)
Independent Auditor’s Report to the Members of Allergy Therapeutics plc 56 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Consolidated income statement for the year ended 30 June 2011     
   Year to  Year to Year to  Year to  
   30 June 2011 30 June 2011 30 June 2010 30 June 2010 
    £’000 £’000 £’000 £’000  
  Note    
      
 Revenue 3  41,552   40,750 
 
 Cost of sales   (13,221)   (11,164)
 
 Gross profit   28,331    29,586    
      
 Distribution costs   (17,524)  (16,141) 
    Administration expenses – other  (9,232)  (10,235) 
    Research and development costs  (1,670)  (2,210) 
 
 Administration expenses   (10,902)  (12,445) 
 Other income 8    210        456
 
 Operating profit     115  1,456 
      
 Finance income 10     2              9 
 Finance expense 9   (2,430)  (1,581)
 
 Loss before tax 5  (2,313)       (116)  
 Income tax 11     (349)    702
      
 (Loss) / Profit for the period   (2,662)    586
      
 (Loss) / Earnings per share 13     
 
 Basic (pence per share)   (0.86p)  0.20p 
 Diluted (pence per share)   (0.86p)  0.19p
      
 
 
 
 
Consolidated statement of comprehensive income for the year ended 30 June 2011    
  
    Year to   Year to  
    30 June 2011  30 June 2010 
     £’000  £’000  
   Note   
   
 (Loss) / Profit for the period   (2,662)  586   
 Actuarial gain / (loss) on defined benefit pension scheme   26 235  (612)  
 Exchange differences on translation of foreign operations   586  (79)  
 Revaluation (losses) / gains    (54)  1,265  
 Income tax relating to components of other comprehensive income  -  (31) 
      
 Total comprehensive income   (1,895)  1,129 
Consolidated Income Statement
Consolidated Income Statement / of Comprehensive Income
Consolidated Statement of Comprehensive Income 57 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Consolidated balance statement       
    30 June 2011  30 June 2010 
     £’000  £’000  
   Note
   
 Assets     
 Non-current assets     
 Property, plant and equipment  16 8,809  8,938 
 Intangible assets – Goodwill  14 2,624  2,496 
 Intangible assets – Other  15 1,781  860 
 Investments – Retirement benefit asset  17 2,493  2,017
 
 Total non-current assets   15,707  14,311
     
 Current assets     
 Trade and other receivables  19 6,779  3,390 
 Inventories  18 7,087  6,894 
 Cash and cash equivalents  20 1,048  4,520
     
 Total current assets   14,914  14,804
     
 Total assets   30,621  29,115
     
 Liabilities     
 Current liabilities     
 Trade and other payables  21 (7,549)  (8,875) 
 Current borrowings  22 (2,793)  (1,109) 
 Derivative financial instruments  24 (805)  -
     
 Total current liabilities   (11,147)  (9,984)
     
 Net current assets   3,767     4,820
     
 Non current liabilities     
 Retirement benefit obligation  26 (4,114)  (3,573) 
 Non current borrowings  22 (12,361)  (10,596) 
 Derivative financial instruments  24 (376)  (830) 
 Deferred taxation  12 (201)  - 
 Non current provisions  23 (283)  (246)
     
 Total non current liabilities   (17,335)  (15,245)
     
 Total liabilities   (28,482)    (25,229)
     
 Net assets   2,139  3,886
     
 Equity     
 Capital and reserves     
 Issued capital  27 321  321 
 Share premium   58,705  58,704 
 Merger reserve – shares issued by subsidiary    40,128  40,128 
 Reserve – shares held by EBT   67  67 
 Reserve – share based payments   1,398  1,323 
 Revaluation reserve   1,287  1,381 
 Foreign exchange reserve   524  (62) 
 Retained earnings   (100,291)  (97,976) 
 
 Total equity      2,139  3,886
Consolidated Balance Sheet
These financial statements were approved by the  
Board of Directors on 16 September 2011 and were  
signed on its behalf by
   Manuel Llobet 
   Chief Executive Officer 
    
 
 
  Ian Postlethwaite 
  Finance Director
  Registered number: 05141592
Consolidated Balance Sheet 58 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Consolidated Statement of Changes in Equity
  Issued Share Merger Reserve- Reserve Revaluation Foreign Retained Total equity  
  capital  premium reserve- shares share reserve exchange earnings 
    shares held in based  reserve 
    issued by EBT payments 
    subsidiary   
  £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
 
 At 30 June 2009 92 33,193 40,128 67 1,291 189 (1,113) (97,023) (23,176)
 
 Exchange differences on  
 translation of foreign  
 operations       (79)  (79) 
 
 Actuarial losses        (612) (612) 
 
 Valuation gains taken to equity           1,265      1,265 
 
 Income tax relating to  
 components of other  
 comprehensive income      (31)   (31)
 
 Other comprehensive income - - - - - 1,234 (79) (612) 543 
 
 Profit for the period after tax               586 586
 
 Total comprehensive income - - - - - 1,234 (79) (26) 1,129 
  
 Share based payments     193    193 
 
 Shares issued 229 25,511       25,740 
 
 Transfer of depreciation  
 on revalued property      (42)  42 - 
 
 Correction of prior period  
 immaterial errors       1,130 (1,130) - 
 
 Transfer of lapsed options  
 to retained earnings          (161)    161 -
 
 At 30 June 2010 321 58,704 40,128 67 1,323 1,381 (62) (97,976) 3,886
          
 
 Exchange differences on  
 translation of foreign operations       586  586 
 
 Actuarial gains        235 235 
 
 Valuation losses taken to equity      (54)   (54)
 
 Other comprehensive income - - - - - (54) 586 235 767 
 
 Loss for the period after tax        (2,662) (2,662)
 
 Total comprehensive income - - - - - (54) 586 (2,427) (1,895) 
 
 Share based payments     147    147 
 
 Shares issued  1       1 
 
 Transfer of depreciation  
 on revalued property      (40)  40 - 
 
 Transfer of lapsed options  
 to retained earnings         (72)    72 -
 
 At 30 June 2011 321 58,705 40,128 67 1,398 1,287 524 (100,291) 2,139
Consolidated Statement of Changes in Equity 59 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Consolidated Cash Flow Statement
    Year to   Year to  
    30 June 2011  30 June 2010 
     £’000  £’000  
   Note
   
 Cash flows from operating activities     
 Loss before tax   (2,313)  (116) 
 Adjustments for:     
 Finance income  10 (2)  (9) 
 Finance expense  9 1,085  1,499 
 Revaluation loss on loan  9 1,345  82 
 Non cash movements on defined benefit pension plan   181  155 
 Depreciation and amortisation  15, 16 1,698  1,427 
 Gain on bargain purchase  29 (186)  - 
 Charge for share based payments   147  193 
 Financial derivative instruments   805  (1,172) 
 Disposal of property, plant and equipment   8  - 
 (Increase) in trade and other receivables   (2,728)  (112) 
 Decrease / (increase) in inventories   73  (911) 
 (Decrease) / increase in trade and other payables   (1,788)  14
      
 Net cash (used in) / generated by operations   (1,675)  1,050
      
 Interest paid   (3)  (15) 
 Income tax (paid) / refunded   (349)  667
      
 Net cash (used in) / generated by operating activities   (2,027)  1,702
     
 Cash flows from investing activities     
 Interest received   3  9 
 Investments   (313)  (319) 
 Acquisitions  29 (740)  - 
 Payments for intangible assets   (87)  (56) 
 Payments for property plant and equipment   (1,150)  (1,642)
      
 Net cash used in investing activities   (2,287)  (2,008)
     
 Cash flows from financing activities     
 Proceeds from issue of equity shares   1  25,740 
 Repayment of borrowings   (7,016)  (41,040) 
 Proceeds from borrowings   9,024  22,442 
 Bank loan fees and interest paid   (1,245)  (2,248)
     
 Net cash generated by financing activities   764  4,894
      
 Net (decrease) / increase in cash and cash equivalents   (3,550)   4,588 
 Effects of exchange rates on cash and cash equivalents   78  (42) 
 Cash and cash equivalents at the start of the period   4,520  (26)
      
 Cash and cash equivalents at the end of the period   1,048  4,520
Consolidated Cash Flow Statement 60 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
1. Basis of preparation 
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’).
Allergy Therapeutics plc is the Group’s ultimate parent 
company. The Company is a limited liability company 
incorporated and domiciled in England. The address 
of Allergy Therapeutics plc’s registered office and its 
principal place of business is Dominion Way, Worthing, 
West Sussex and its shares are listed on the Alternative 
Investment Market (AIM). The consolidated financial 
statements for the year ended 30 June 2011 (including 
comparatives) have been prepared under the historical  
cost convention except for land and buildings and 
derivative financial instruments which have been measured 
at fair value. They were approved and authorised for  
issue by the Board of Directors on 16 September 2011.
New standards adopted  
The Group has adopted the following new interpretations, 
revisions and amendments to IFRS issued by the 
International Accounting Standards Board which are 
relevant to and effective for the Group’s financial 
statements for the year beginning 1 July 2010. 
IFRS 3 Business Combinations (revised 2008) 
During 2011 the Group adopted IFRS 3 revised.  
In anticipation of this, £120,000 of transactions costs  
were recognised through the Group’s consolidated  
income statement in 2010 which related to the  
acquisition of Teomed AG as detailed in Note 29.
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 
2011 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:
IFRS 9 Financial Instruments (effective 1 January 2013) 
This IFRS replaced IAS39 and addresses the usefulness 
for users of financial statements by simplifying the 
classification and measurement requirements for financial 
instruments. Management are currently assessing the 
detailed impact on the Group’s financial statements. 
IFRS 10 Consolidated Financial Statements  
(effective 1 January 2013)
This IFRS establishes principles for the presentation  
and preparation of consolidated financial statements  
when an entity controls one or more other entities.
IFRS 12 Disclosure of Interests in Other Entities 
(effective 1 January 2013) 
This IFRS looks at the disclosure of information that 
enables users of financial statements to evaluate the 
nature of, and risks associated with, its interests in other 
entities, and the effects of those interests on its financial 
position, financial performance and cash flows.
IFRS 13 Fair Value Measurement  
(effective 1 January 2013) 
IFRS 13 seeks to increase consistency and comparability  
in fair value measurements and related disclosures through 
a ‘fair value hierarchy’.
IAS 19 (Revised June 2011) Employee Benefits 
(effective 1 January 2013) 
IAS 19 reviews the treatment of employee benefits with 
a view to recognising the cost in the period in which the 
benefit is earned by the employee, rather than when it  
is paid or payable.
IAS 27 (Revised) Separate Financial Statements 
(effective 1 January 2013) 
IAS 27 is concerned with the preparation and presentation 
of consolidated financial statements for a group of 
entities under the control of a parent, and in accounting 
for investments in subsidiaries, jointly controlled entities 
and associates when an entity elects, or is required by 
local regulations, to present separate (non-consolidated) 
financial statements. 
Amendments to IFRS 7 Disclosures on Transfers  
of Financial Assets (effective 1 July 2011) 
IFRS 7 addresses the need for additional disclosures  
on financial instruments regarding the significance,  
nature and risk arising from their use. 
Amendments to IAS 12 Deferred Tax: Recovery  
of Underlying Assets (effective 1 January 2012) 
This IAS prescribes the treatment for income taxes. 
Amendments to IAS 1 Presentation of Other 
Comprehensive Income (effective 1 July 2012) 
This IAS amendment revises the way the statement 
of other comprehensive income should be presented 
requiring separate subtotals for those elements which  
may be ‘recycled’ (e.g. cash-flow hedging, foreign  
currency translation), and those elements that will not.
Management anticipate that the above pronouncements 
will be adopted in the Group’s financial statements in line 
with the effective dates stated above. Management are 
currently assessing their detailed impact on the Group’s 
financial statements. 
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 61 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Going concern 
For the year ended 2011 and for the second year in 
succession, the Group has reported an operating profit, 
however the Group reported a loss after tax of £2.7m 
(2010: £0.6m profit) and an operating cash outflow of 
£2.0m (2010: £1.7m inflow), and these have been  
funded by the debt facilities.
The Group has prepared detailed budgets, including cash 
flow projections, for the periods ending 30 June 2012  
and 30 June 2013. 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 
The principal accounting policies adopted in the  
preparation of these financial statements are set out 
below. These policies have been consistently applied  
to all years presented unless otherwise stated.
Consolidation 
The Group’s financial statements consolidate those of  
the parent company and all of its subsidiaries drawn up  
to 30 June 2011. 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. Identifiable assets acquired and 
liabilities and contingent liabilities assumed in a business 
combination that meet the conditions for recognition under 
IFRS 3 Revised Business Combinations, are recognised 
at their fair values at the acquisition date. 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 profit or loss.
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.
Where necessary, adjustments are made to the financial 
statements of subsidiaries to bring accounting policies 
used into line with those used in the Group.
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.
Notes to the Financial Statements 62 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Subsequent to initial recognition, internally generated 
intangible assets are reported at cost less accumulated 
amortisation and accumulated impairment losses. 
Amortisation of all intangible 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 in the consolidated income statement.
Segmental reporting 
In identifying its operating segments, management  
follow the Group’s revenue lines which represent the  
main geographical markets within which the Group 
operates. These operating segments are managed 
separately as each requires different local expertise, 
regulatory knowledge and a specialised marketing 
approach. An operating segment is a group of assets  
and activities engaged in operations that is subject to  
risks and returns that are different from those of other 
business segments. A market based operating segment  
is engaged in production, marketing and selling within  
a particular economic environment that is different from  
that in segments operating in other economic 
environments. All inter-segment transfers are carried  
out at arm’s length prices.
The Group’s operating segments are market based and are 
reported in a manner consistent with the internal reporting 
provided to the Group’s Chief Operating Decision Maker 
(CODM) who has been identified as the Board of Directors. 
The CODM is responsible for allocating resources and 
assessing the performance of the operating segments.
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 profit and loss.
Group companies 
The results and financial position of all Group entities that have a 
functional currency different from the presentational currency 
are translated into the presentational currency as follows:
•	 Assets and liabilities for each balance sheet  presented  
 are translated at the closing rate at the date of the   
 balance sheet with all resulting exchange differences  
 being recognised in other comprehensive income and  
 accumulated in a separate component of equity.
•	 Income and expenses for each income statement   
 item are translated at actual exchange rates or using  
 an average rate as an approximation with resulting  
 exchange differences recognised in other  
 comprehensive income and accumulated in a  
 separate component of 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.
A small proportion of the Group’s overseas sales are  
made though licensees and distributors.
For all licensee arrangements, the licensee is invoiced at 
the time of delivery and title to the product passes upon 
Notes to the Financial Statements 63 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
full and final settlement of the invoice to which the delivery 
relates. The licensee has full discretion over the setting of 
the final selling price to the end customer and pays a fixed 
percentage of the final selling price back to the Group as 
‘royalties’ as and when those sales are made. The licensee 
is responsible for all customer returns of product. 
It is considered that the significant risks and rewards of 
ownership of the product are transferred to the licensee at 
the point of delivery and therefore revenue is recognised 
at this point in accordance with IAS 18. Royalties are 
recognised on an accruals basis as the licensee books 
the sale to the end customer in accordance with IAS 18 
paragraph 30 (b).
For all distributor agreements, the distributor places  
orders with the Group, at which point goods are shipped 
to them. The Group however, holds title to these products 
until they are sold on to a third party with the distributor 
effectively acting as an agent. The selling price to the 
end user is set by the relevant Government body and the 
distributor receives a fixed percentage of this selling price. 
The distributor notifies the Group monthly on stock levels 
and this is reconciled to a statement which generates an 
invoice for payment by the distributor. The Group  
is responsible for any customer returns of product.
It is considered that the significant risks and rewards  
of ownership of the product are not transferred from  
the Group until the distributor has sold the product to 
a third party and therefore revenue on these sales is 
recognised at this point by the Group in accordance  
with IAS 18 appendix 2 (c).
Expenditure recognition 
Operating expenses are recognised in the income 
statement upon utilisation of the service or at the date  
of their origin. 
Borrowing costs 
Borrowing costs primarily comprise interest on the Group’s 
borrowings. Borrowing costs directly attributable to the 
acquisition, construction or production of a qualifying asset 
are capitalised during the period of time that is necessary 
to complete and prepare the asset for its intended use or 
sale. Other borrowing costs are expensed in the period in 
which they are incurred and reported in ‘finance costs’.
Property, plant and equipment 
Following the introduction of IAS 16, the Group has 
adopted a policy of revaluation of freehold properties.  
In accordance with this policy management have 
agreed that all freehold properties will be subject to a 
full revaluation at least every five years with an interim 
valuation carried out in accordance with IAS16 in the  
third year after each valuation. 
Revaluations are performed by independent qualified and 
experienced valuers who have adequate local knowledge 
in the country in which the property is situated. In the 
intervening years between independent revaluations,  
the directors review the carrying values of the freehold 
land and buildings and adjustments are made if the 
carrying values differ significantly from their respective  
fair values. Increases in the carrying value from 
revaluations are recognised in other comprehensive 
income. Decreases in the carrying values arising  
from revaluations are first offset against increases  
from earlier revaluations in respect of the same assets  
and are thereafter charged to profit or loss.
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 (except land) is made over their estimated 
useful lives, on a straight line basis principally using the 
following annual rates: 
 
 Buildings  33 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.
Depreciation is included within operating expenses  
in the income statement.
Impairment 
The Group’s goodwill, other intangible assets, freehold  
land and buildings and 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. 
Notes to the Financial Statements 64 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
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.
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 loans and receivables are initially 
recognised at fair value plus transaction costs,  
and subsequently at amortised cost, with any changes 
going through profit or loss.
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 and derivatives. 
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 profit and loss.
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. 
Notes to the Financial Statements 65 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
•	 “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 and land and buildings.
•	 “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. 
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 other comprehensive income (such  
as the revaluation of land and buildings) in which case  
the related deferred tax is also charged or credited  
directly to other comprehensive income.
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 in 
other comprehensive income. 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. They are held at fair value with any  
gains or losses on valuation charged or credited to  
other comprehensive income.
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 
including Save As You Earn (SAYE) and Long Term 
Incentive Plan (LTIP) schemes.
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 
Notes to the Financial Statements 66 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
to the share option or shares 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). The fair value of LTIP shares, which 
have market conditions attached, includes an adjustment 
based on the probability of the shares vesting at the end  
of the vesting period. 
Details of the SAYE and LTIP schemes and the conditions 
applying to each scheme are fully disclosed in Note 28 
(Share Based Payments) on page 89.
All share based compensation is ultimately recognised as 
an expense in the consolidated income statement 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 share 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.
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 reflects the requirements of the users of  
 those statements.
b) 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, £1.7m   
 (2010: £2.2m).
c) Land and buildings were not revalued to fair value at  
 the reporting date as management determined that  
 the effect of the changes in market prices between  
 the dates of revaluation and the reporting dates  
 were immaterial.
d) Judgements have been made in respect of the  
 identification and valuation of intangible assets  
 made on the acquisition of Teomed AG, based on  
 pre-acquisition forecasts, analysis and negotiations.
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.
e) Determining the goodwill position on the acquisition  
 of  Teomed AG on 1 July 2011 requires an estimation  
 of the future cashflows relating to distributor   
 agreements in place with Teomed AG on that date.  
 It also requires estimation of a suitable discount rate  
 in order to  calculate the present value.
Notes to the Financial Statements 67 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
3. Revenue 
An analysis of revenue by category is set out  
in the table below:
  2011 2010 
  £’000 £’000
   
 Sale of goods 40,445 38,735 
 Royalties 1,107 2,015
   
  41,552 40,750
There were no milestone payments in either the current  
or previous year.
4. Segmental reporting
The Group’s operating segments are being reported 
based on the financial information provided to the Board 
of Directors, which is the Chief Operating Decision-Maker 
(CODM), to enable it to allocate resources and make 
strategic decisions. 
The CODM reviews information based on geographical 
market sectors and assesses performance at an EBITDA 
(operating profit before interest, tax, depreciation and 
amortisation) and operating profit level. Management have 
identified that the operating segments are Central Europe 
(Germany, Austria and the new markets in Switzerland  
and the Netherlands), Southern Europe (Italy and Spain), 
the UK and Other.
Notes to the Financial Statements 68 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Revenue by segment 
 
  Revenue Inter Total Revenue Inter Total 
  from segment segment from segment segment 
  external revenue revenue external revenue revenue 
  customers   customers 
  2011 2011 2011 2010 2010 2010 
  £’000 £’000 £’000 £’000 £’000 £’000
       
 Central Europe      
  Germany 27,390  27,390 29,973  29,973 
  Other 4,816  4,816 933  933
  
  32,206  32,206 30,906  30,906
 
 Southern Europe 5,931  5,931 5,562  5,562 
 UK 700 34,925 35,625 490 35,024 35,514 
 Other 2,715  2,715 3,792  3,792
       
  41,552 34,925 76,477 40,750 35,024 75,774
Revenues from external customers in all segments 
are derived from the sale of a range of pharmaceutical 
products designed for the immunological treatment of  
the allergic condition. 
Other revenues include licensee and distributor sales and 
royalties through several world-wide markets including 
Czech and Slovak Republics, Canada and South Korea.
Inter-segment revenues represent sales of product from 
the UK to the operating subsidiaries. The price is  
set on an arms-length basis which is eliminated  
on consolidation. 
The CODM also reviews revenue by segment on  
a constant currency basis to provide relevant year  
on year comparisons. The following revenue table  
is based on a constant currency rate of €1.20: £1.00  
which was the rate used in the 2011 budget.
  Revenue from external  Revenue from external 
  customers customers 
  2011  2010 
  £’000 £’000 
     
 Central Europe    
 Germany 26,783 28,409 
  Other 4,855 1,816
  
  31,638 30,225
 
 Southern Europe 5,689 5,172 
 UK 700 490 
 Other 2,638 2,965 
     
  40,665 38,852
Notes to the Financial Statements 69 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Depreciation and amortisation by segment 
 
  2011 2010 
  £’000 £’000 
     
 Central Europe 74 58 
 Southern Europe 93 99 
 UK 1,531 1,270
   
  1,698 1,427
EBITDA by segment 
 
  2011 2010 
 Allocated EBITDA £’000 £’000 
     
 Central Europe 363 521 
 Southern Europe  (189) 313 
 UK 1,639 2,049
 
 Allocated EBITDA 1,813 2,883 
 Depreciation and amortisation (1,698) (1,427)
 
 Operating profit 115 1,456 
 Finance income 2 9 
 Finance expense (2,430) (1,581)
   
 Loss before tax (2,313) (116)
Total assets by segment 
 
  2011 2010 
  £’000 £’000 
     
 Central Europe 9,849 6,538 
 Southern Europe 3,823 3,255 
 UK 33,436 34,810
 
  47,108 44,603
 
 Inter-segment assets (1,835) (1,620) 
 Inter-segment investments (14,652) (13,868)
   
 Total assets per balance sheet 30,621 29,115
Total liabilities by Segment 
 
  2011 2010 
  £’000 £’000 
     
 Central Europe (7,836) (5,633) 
 Southern Europe (1,646) (1,289) 
 UK (20,835) (19,927)
  
  (30,317) (26,849)
 
 Inter-segment liabilities 1,835 1,620
   
 Total liabilities per balance sheet (28,482) (25,229)
Notes to the Financial Statements 70 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
5. Loss before tax 
 
  2011 2010 
 Loss for the period has been arrived at after charging: £’000 £’000 
     
 Foreign exchange loss 2,180 730 
 
 Depreciation and amortisation:   
 Depreciation of property plant and equipment (Note 16) 1,355 1,172 
 Amortisation of intangible assets (Note 15) 343 255 
 
 Research and development 1,670 2,210 
 
 Employee benefits expense:   
 Employee costs (Note 7) 17,459 19,029 
 
 Land and buildings held under operating leases  446 398 
 Other operating leases 503 520 
  
 Acquisition costs - 120 
 
 Audit and non-audit services:   
 Fees payable to the Company’s auditor for the audit of the Group accounts 21 21 
 
 Fees payable to the Company’s auditor and its associates for other services:   
 The audit of the Company’s subsidiaries pursuant to legislation 54 62 
 Tax services 3 2 
 Other services pursuant to legislation 17 11 
 
 Share based payment expense (Note 28) 147 193
6. Remuneration of key management personnel 
 
  2011 2010 
  £’000 £’000 
     
 Salaries and short-term employee benefits 1,044 1,162 
 Social security costs 98 74 
 Severance payments 31 542 
 Post employment benefits – defined benefit plans 22 41 
 Post employment benefits – defined contribution plans 50 71
 
  1,245 1,890
 
 Over accrual of bonuses - (50) 
 Share based payment 46 75
   
  1,291 1,915
 
 
Key management personnel are considered to be the Directors  
and full details of their remuneration are set out in the audited  
information included in the Director’s Remuneration Report on  
pages 50 to 53.
Notes to the Financial Statements 71 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
7. Employees  
 
  2011 2010 
  £’000 £’000 
     
 Wages and salaries 14,684 16,093 
 Social security costs 2,158 2,278 
 Share based payments 147 193 
 Pension costs – defined benefit plans 261 244 
 Pension costs – defined contribution plans 209 221
   
  17,459 19,029
 
 
 The average number of employees during the period  
 (including executive directors) was made up as follows: 
 
  2011 2010
   
 R&D, marketing and administration 125 136 
 Sales 83 72 
 Production 165 186
   
  373 394
8. Other income 
 
  2011 2010 
  £’000 £’000 
     
 Gain on bargain purchase 186 - 
 Contribution from third party 24 456
 
  210 456
On 1 July 2010, Allergy Therapeutics plc acquired  
100% of the issued share capital of Teomed AG  
(see Note 29). The acquisition gave rise to a gain on 
bargain purchase primarily due to the fair valuation  
of the existing distribution agreements exceeding  
the cash paid. These intangible assets represent the 
potential future discounted cashflows lost to the  
Group should these existing agreements be terminated. 
They were not recognised on the balance sheet of the 
acquired company.
During the previous year a facility had been constructed 
to manufacture a product component; previously this 
stage in the manufacturing process was carried out 
by the Company’s supplier. A contribution of £456,000 
was made towards the cost of this construction by the 
supplier. Under IFRS, this contribution is included in 
the consolidated income statement as other income 
whilst the asset is included under fixed assets in the 
consolidated balance sheet and depreciation is charged 
annually on the gross amount. A further £24,000 was 
received in the current year.
Notes to the Financial Statements 72 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
9. Finance expense 
 
  2011 2010 
  £’000 £’000 
     
 Interest on borrowing facility 1,342 1,580 
 Change in fair value of financial derivative instrument (454) (289) 
 Bank interest - 6 
 Employee defined benefit scheme interest expense 196 193 
 Other interest and charges  1 9
  
  1,085 1,499 
 Retranslation loss on Euro denominated borrowing facilities  1,345 82
   
  2,430 1,581
The revaluation loss represents the translation  
difference on the Group’s Euro based borrowing  
facility caused by the movement of the Euro  
against Sterling throughout the year.
10. Finance income 
 
  2011 2010 
  £’000 £’000 
     
 Bank interest 2 9 
11. Income tax expense 
 
  2011 2010 
 Current Tax: £’000 £’000 
     
 Prior period tax (66) (831) 
 Overseas tax 429 129
 
  363 (702)
 
 Deferred tax – current year (14) -
 
 Tax charge/(credit) for the period 349 (702) 
Notes to the Financial Statements 73 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
  2011 2010 
  £’000 £’000 
     
 Loss for the period before tax (2,313) (116)  
 
 Loss for period multiplied by the respective standard rate  (636) (32) 
 of corporation tax applicable in each domain (average 27.5%)
   
 Effects of:    
 Disallowable adjustments 589 (437) 
 Capital allowances in excess of depreciation  (2) (147) 
 Other fixed asset temporary differences, adjustments and movements 23 31 
 Tax utilised (24) (26) 
 Allowances for R&D expenditure (138) (386) 
 Tax losses not utilised 650 243 
 Adjustment for different tax rates (33) 26 
 Relief for shares acquired by employees and Directors - (43) 
 Tax loss surrendered to R&D tax credit - 900 
 R&D tax credit received in the period (66) (831)
 
  363 (702) 
 Deferred tax release (14) -
   
 Tax charge/(credit) for the period 349 (702)
12. Deferred Tax  
  Recognised deferred tax 
   2011 2010 
   £’000 £’000 
     
 At 1 July - - 
 Acquisition of Teomed AG (Note 29) 177 - 
 Released in the period (14) - 
 Exchange differences 38 -
   
   201 -
The tax charge / (credit) assessed for the period is higher 
than the standard rate of corporation tax as applied in the 
respective trading domains where the Group operates. 
The differences are explained below:
Deferred tax is provided under the balance sheet 
liability method using the local tax rate for the overseas 
difference.
Notes to the Financial Statements 74 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com Notes to the Financial Statements
Unrecognised deferred tax 
 
  2011 2011 2010 2010 
  Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities 
  £’000 £’000 £’000 £’000
 
 Non Current Assets     
 Property, plant and equipment - (632) - (697) 
 
 Current Liabilities     
 Derivative financial instruments 209 - - - 
 
 Non Current Liabilities     
 Pension and other employee 535 - 436 - 
 obligations  
 Derivative financial instruments 98 - 232 - 
 Share options 119 - - - 
 
 Unused tax losses 17,783 - 18,776 -
 
  18,744 (632) 19,444 (697) 
 
 Offset (632) 632 (697) 697
     
 Total 18,112 - 18,747 -
The main UK corporation tax rate is to change  
from 26% to 25% with effect from 1 April 2012.  
The unrecognised deferred tax assets have been 
calculated at 26%, being the rate enacted at 30 June 
2011. The estimated impact of the reduction in the  
tax rate to the net deferred tax asset and liabilities  
is a net reduction in the asset of £0.7m.
No deferred tax has been recognised in respect of these 
temporary differences.
13. (Loss) / earnings per share 
 
  2011 2010 
  £’000 £’000 
     
 (Loss) / profit after tax attributable to equity shareholders (2,662) 586 
 
 
  Shares Shares 
  ‘000 ‘000
   
 Issued ordinary shares at start of the period 310,757 82,367 
 Ordinary shares issued in the period 15 228,390 
 Issued ordinary shares at end of the period 310,772 310,757
   
 Weighted average number of shares in issue for the period 310,759 293,143 
 Weighted average number of shares for diluted earnings per share 323,354 305,581
   
 Basic (loss) / earnings per share (pence) (0.86p) 0.20p 
 Diluted (loss) / earnings per share (pence) (0.86p) 0.19p
The diluted loss per share in the current year 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. 75 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
14. Goodwill  
 
  2011 2010 
  £’000 £’000 
     
 At 1 July 2,496 2,555 
 Exchange difference 128 (59)
   
 At 30 June 2,624 2,496
 
  
 For the purposes of impairment testing of goodwill, the directors  
 recognise the Group’s Cash Generating Units (“CGU”) to be the following: 
 
  2011 2010 
  £’000 £’000
   
 Germany 2,624 2,496
The recoverable amount for the CGU 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 
which the Group has estimated to be the approximate 
weighted average cost of capital to the Group.
Management’s key assumptions include sales growth  
(at an average of 4% for the three year period), 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 CGU described above, the Group’s 
management is not currently aware of any other probable 
changes that would necessitate changes in its key 
estimates.
Notes to the Financial Statements 76 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
The acquired assets relate to the fair valuation of existing 
distribution agreements acquired during the purchase 
of 100% of the share capital of Teomed AG, a Swiss 
company that specialises in the field of allergy (see Note 
29). These intangible assets represent the potential future 
discounted cashflows lost to the group should these 
existing agreements be terminated.
15. Intangible assets 
 
  Manufacturing Non-competing Other Computer Total 
  know-how know-how intangibles software 
  £’000 £’000 £’000 £’000 £’000 
     
 Cost      
 At 1 July 2009 1,000 3,634 1,011 1,604 7,249 
 Additions - - - 53 53 
 Foreign exchange - (150) (14) (20) (184)
      
 At 30 June 2010 1,000 3,484 997 1,637 7,118 
 Additions - - 55 128 183 
 Acquired assets - - 884 - 884 
 Foreign exchange - 326 217 59 602
      
 At 30 June 2011 1,000 3,810 2,153 1,824 8,787
      
 Amortisation      
 At 1 July 2009 733 3,634 796 1,021 6,184 
 Charge for the year 67 - 51 137 255 
 Foreign exchange - (150) (12) (19) (181)
      
 At 30 June 2010 800 3,484 835 1,139 6,258 
 Charge for the year 67 - 125 151 343 
 Foreign exchange - 326 27 52 405
      
 At 30 June 2011 867 3,810 987 1,342 7,006
      
 Net book value      
 At 1 July 2009 267 - 215 583 1,065 
 At 30 June 2010 200 - 162 498 860 
 
 At 30 June 2011 133 - 1,166 482 1,781
Notes to the Financial Statements 77 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
16. Property, plant and equipment 
 
  Plant &  Fixtures &  Motor Computer  Assets under Freehold land  Total 
  machinery fittings vehicles equipment construction & buildings 
  £’000 £’000 £’000 £’000 £’000 £’000 £’000
     
 Cost or valuation        
 At 1 July 2009 4,998 3,548 36 1,897 1,927 332  12,738 
 Revaluation - - - - - 950 950 
 Additions 150 184 - 78 1,238 - 1,650 
 Asset reclassification 7 - - 105 (112) - - 
 Foreign exchange (6) (28) - (24) - (17) (75) 
 Disposals (6) (50) - (10) - - (66)
 
 At 30 June 2010 5,143 3,654 36 2,046 3,053 1,265 15,197
        
 Additions 297 636 - 129 - - 1,062 
 Acquired assets 10 4 - 1 - - 15 
 Asset reclassification 2,068 408 - 577 (3,053) - - 
 Foreign exchange 14 61 - 58 - 138 271 
 Disposals (29) (18) - - - - (47)
        
 At 30 June 2011 7,503 4,745 36 2,811 - 1,403 16,498
        
 Depreciation        
 At 1 July 2009 2,271 1,779 14 1,152 - 331  5,547 
 Charge for the year 409 450 8 266 - 39 1,172 
 Revaluation - - - - - (331) (331) 
 Foreign exchange (4) (20) - (22) - (17) (63) 
 Disposals (6) (50) - (10) - - (66)
 
 At 30 June 2010 2,670 2,159 22 1,386 - 22 6,259
        
 Charge for the year 518 512 7 275 - 43 1,355 
 Foreign exchange 10 50 - 52 - 2 114 
 Disposals (28) (11) - - - - (39)
        
 At 30 June 2011 3,170 2,710 29 1,713 - 67 7,689
        
 Net book value        
 At 1 July 2009 2,727 1,769 22 745 1,927 1  7,191 
 At 30 June 2010 2,473 1,495 14 660 3,053 1,243 8,938 
 
 At 30 June 2011 4,333 2,035 7 1,098 - 1,336 8,809
All assets are secured against the Group’s bank 
borrowings.
All assets previously considered to be under the course  
of construction have been completed during the year 
and are currently in use. These assets have therefore 
now been transferred into their relevant categories and 
depreciated in line with the Group’s policies. There are  
no assets under construction as at 30 June 2011.
The Group’s land and buildings were revalued in July 2009 
by independent valuers. The land and buildings were 
previously valued using the cost model and had a carrying 
value of £1. Fair values were estimated based on recent 
market transactions, which were then adjusted for  
specific conditions relating to the land and buildings.
The land and buildings were not revalued to fair value  
at the reporting date as management determined that  
the effect of changes in market prices between the  
date of revaluation and reporting dates were immaterial.
If the cost basis was used, the carrying amounts  
of the revalued land and buildings would be £1. 
 
The revalued amounts include a revaluation surplus  
of £1,281,000 before tax (of which £331,000 writes  
back the accumulated depreciation) which is not  
available for distribution to the shareholders of the Group.
Notes to the Financial Statements 78 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
17. Investments
The Group carries an insurance policy which is designed  
to contribute towards the obligation in respect of the 
defined benefit pension scheme. It is valued at fair  
value (market price) by the Group’s actuaries each year.
  2011 2010 
  £’000 £’000 
     
 At 1 July 2,017 1,824 
 Additions 296 319 
 (Loss) on the investment  (54) (15) 
 Gain / (loss) on foreign exchange 234 (111)
   
  2,493 2,017
18. Inventories 
 
  2011 2010 
  £’000 £’000 
     
 Raw materials and consumables 2,196 2,072 
 Work in progress 3,134 4,474 
 Finished goods 1,757 348
   
  7,087 6,894
The cost of inventories recognised as an expense in  
cost of sales during the year was £13.2m (2010: £11.2m) 
including write-downs in the year amounting to £1.1m 
(2010: £1.5m).
The value of inventories measured at fair value less  
cost to sell was £252,000 (2010: £175,000).
19. Trade and other receivables 
 
  2011 2010 
  £’000 £’000 
     
 Trade receivables 2,842 2,132 
 Other receivables 2,774 373 
 VAT 130 158 
 Prepayments 1,033 727
   
  6,779 3,390
Notes to the Financial Statements 79 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
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. During the year, £471,000 of the  
provision was utilised whilst £39,000 of trade receivables 
were found to be impaired. A provision decrease of 
£405,000 (2010: increase of £84,000) has been recorded 
accordingly. 
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 financial assets which were overdue but not provided for were: 2011 2010 
  £’000 £’000 
     
 Trade receivables   
 Not more than 3 months  515 334 
 More than 3 months but not more than 6 months  269 138 
 More than 6 months but not more than 1 year  76 42 
 More than one year  3 119
   
  863 633
 Bad and doubtful debt provision 2011 2010 
  £’000 £’000 
     
 Balance b/f 484 421 
 Foreign exchange adjustments 27 (21) 
 Charge for the year 39 84 
 Utilised (471) -
   
 Balance c/f 79 484
20. Cash and cash equivalents 
 
  2011 2010 
  £’000 £’000 
     
 Cash at bank and in hand 1,048 4,520
21. Trade and other payables 
 
  2011 2010 
  £’000 £’000 
     
 Trade payables 3,821 3,948 
 Social security and other taxes 765 1,657 
 Other creditors 146 134 
 Accrued expenses and deferred income 2,817 3,136
   
  7,549 8,875
Notes to the Financial Statements 80 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
22. Borrowings 
 
  2011 2010 
  £’000 £’000 
     
 Due within one year   
 Facility borrowing  2,793 891 
 Short term loans - 218
 
  2,793 1,109
   
 
 Due after more than one year   
 Facility borrowing 12,361 10,596
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 a variable 
margin. The loan is secured in favour of The Royal Bank 
of Scotland plc by means of debentures granted by the 
Company and it’s principal subsidiaries, 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. 
23. 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.
  2011 2010 
  £’000 £’000 
     
 At 1 July 246 277 
 Additions 43 36 
 Utilisation (33) (56) 
 Foreign exchange movement 27 (11)
 
 At 30 June 283 246
Notes to the Financial Statements 81 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
24. 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. 
Capital management objectives are met through regular 
reviews of cash flows, debtor/creditor balances, budgets 
and forecasts.
  2011 2010 
  £’000 £’000 
     
 Total equity 2,139 3,886 
 Cash and cash equivalents (1,048) (4,520)
 
 Capital 1,091 (634)
   
 Total equity 2,139 3,886 
 Borrowings 15,154 11,705
 
 Overall financing 17,293 15,591
   
 Capital-to-overall financing ratio 0.06 (0.04)
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 2011 2010 
  £’000 £’000 
     
 Financial assets   
 Current   
 Loans and receivables (including cash and cash equivalents) 6,794 7,183 
 Non financial current assets 1,033 727
 
  7,827 7,910
   
 Financial liabilities   
 Current   
 At amortised cost (including borrowings and payables) (6,760) (5,191) 
 Fair value through profit and loss (805) - 
 Non financial current liabilities (3,582) (4,793) 
 Non current   
 At amortised cost (including borrowings and payables) (12,644) (10,842) 
 Fair value through profit and loss (376) (830) 
 Non financial non current liabilities (201) - 
 
  (24,368) (21,656)
Notes to the Financial Statements 82 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
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 were arranged to convert 
60% of the Company’s loan borrowings from floating to 
fixed rates. Within the fair value hierarchy, this financial 
derivative is classified as level 2. 
Euro forward contracts 
The Group has Euro forward contracts with its bank that 
are arranged for the sale of €16,681,000 to purchase GBP 
at an average blended rate of 1.171 at future dates from 
July 2011 to April 2012. 
Euro exchange swap 
The Group has utilised a Euro exchange swap for the 
sale of €1,173,000 to purchase GBP at a rate of 1.1125, 
maturing in July 2011.
 Analysis of derivative financial instruments 2011 2010 
  £’000 £’000 
     
 (Charge) / Credit to the Income Statement   
 Euro exchange swap - held for trading (6) - 
 Euro forward contacts - held for trading (799) 1,172 
 Euro forward contracts - matured in the period (293) (1,755)
   
  (1,098) (583)
   
 Interest rate swap - held for trading 454 296 
 Interest rate swap - charges in the period (474) (689)
   
  (20) (393)
Forward exchange contracts are considered by 
management to be part of economic hedge arrangements 
but have not been formally designated as such.
 Derivative financial instruments 2011 2010 
  £’000 £’000 
     
 Current liabilities 
 Derivative financial instruments   
 - Euro exchange swap - held for trading 6 - 
 - Euro forward contracts - held for trading 799 -
    
  805 -
 
 Non current liabilities   
 Derivative financial instruments  
 - Interest rate swap – held for trading 376 830
   
  376 830
The net loss at fair value of financial instruments through 
the profit and loss is £351,000 (2010: £1,468,000 gain). 
Notes to the Financial Statements 83 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
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 active subsidiaries in Germany, Italy, 
Spain, Austria and the Netherlands, Sterling which is the 
functional currency of the UK subsidiary or Swiss Francs 
which is the functional currency of the Swiss subsidiary. 
Some costs are denominated in US dollars and some 
income is denominated in Canadian dollars. 
The Group carries bank balances in the following 
currencies:
  2011 2010 
  £’000 £’000 
     
 Sterling 56 1,582 
 Euro 882 2,114 
 US dollars 47 17 
 Canadian dollars 5 8 
 Swiss franc 40 795 
 Slovak krona 17 - 
 Polish zloty 1 4
    
  1,048 4,520
Foreign currency denominated financial assets and 
liabilities, translated into Sterling at closing rates,  
are as follows:
  Sterling Euro Other Sterling Euro Other 
  2011 2011 2011 2010 2010 2010 
  £’000 £’000 £’000 £’000 £’000 £’000
       
 Financial assets 304 5,657 833 1,824 4,099 1,260 
 Financial liabilities (1,606) (5,208) (751) (1,408) (2,325) (1,458)
       
 Short term exposure (1,302) 449 82 416 1,774 (198)
       
 Financial assets - - - - - - 
 Financial liabilities - (13,021) - - (11,672) -
       
 Long term exposure - (13,021) - - (11,672) -
Notes to the Financial Statements 84 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
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. Foreign exchange movements over the 
last two years have been considered and an average 
taken, and on this basis a 10% movement is considered  
to be a reasonable benchmark. For 2010, a 10% 
movement was also used.
  2011 2010 
  £’000 £’000 
     
 If Sterling had strengthened against the Euro by  10% 10% 
 Net results for the year 157 984 
 Other comprehensive income (628) (211)
    
  (471) 773
    
 If Sterling had weakened against the Euro by 10% 10% 
 Net results for the year (337) (720) 
 Other comprehensive income 767 254
     
  430 (466)
Interest rate risk
The Group finances its operations through equity 
fundraising and bank facilities. Interest is charged  
at a floating rate on the borrowing facility; hedged by  
an interest rate swap covering 60% of the total 
outstanding, converting floating to fixed rates of interest. 
This borrowing facility was amended on 3 July 2009 and 
is now tailored in such a way as to give greater flexibility 
to the Group. This allows the Group to utilise a higher 
proportion of the facility in the low sales season and pay 
down the debt in the high sales season. 
The following table illustrates the sensitivity of  
the net result for the year and equity to possible  
changes in interest rates of + 1% with effect from  
the beginning of the year on the remaining element  
of borrowings. Due to the current low interest rates it  
is unfeasible to illustrate the results were the interest 
rates to fall by 1%. The 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.
  2011 2011 2010 2010 
  £’000 £’000 £’000 £’000 
  + 1% - 1% + 1% - 1%
 
 Net results for the year (32) n/a 19 n/a 
 Equity - n/a - n/a
     
  (32) n/a 19 n/a
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 85 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Liquidity risk
The Group’s capital management objectives are to ensure 
the Group’s ability to continue as a going concern, and to 
provide adequate funding for its day to day operations. 
Management has access to funding through a bank facility 
and continues to have the option to raise funding from the 
issue of equity shares to ensure the Group remains able 
to meet its commitments as they fall due. As at 30 June 
2011 the Group’s contractual maturities are summarised 
as follows:
 Current liabilities 
  2011 2011 2010 2010 
  £’000 £’000 £’000 £’000 
  Within 6 months 6 to 12 months Within 6 months 6 to 12 months
 
 Borrowing facility - principal 1,396 1,397 218 891 
 Borrowing facility -  658 451 778 522 
 interest and other charges 
 Trade payables 3,821 - 3,948 - 
 Other short term liabilities 3,728 - 4,927 -
     
  9,603 1,848 9,871 1,413 
 Derivatives 684 121 - -
     
  10,287 1,969 9,871 1,413
 Non-current liabilities 
  2011 2011 2010 2010 
  £’000 £’000 £’000 £’000 
  1 to 5 years Later than 5 years 1 to 5 years Later than 5 years
 
 Borrowing facility - principal 12,361 - 10,596 - 
 Borrowing facility -  1,387 - 3,263 - 
 interest and other charges  
 Other long term liabilities 283 - - -
     
  14,031 - 13,859 - 
 Derivatives 376 - 830 -
     
  14,407 - 14,689 -
There is no material difference between the fair values 
and the book values of these financial instruments.
Notes to the Financial Statements 86 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
  Land & Land &  Other Other Total Total 
  buildings buildings  
  2011 2010 2011 2010 2011 2010 
  £’000 £’000 £’000 £’000 £’000 £’000
         
  Within one year 485 315 457   409   942 724 
 Two to five years 1,628 733 745  335   2,373 1,068 
 Over five years 621 821 - 8 621 829
       
  2,734 1,869 1,202    752 3,936 2,621
25. Operating lease commitments
The following payments are due to be made on operating 
lease commitments:
Of the operating lease commitments for the land and 
buildings of £2,734,000 (2010: £1,869,000), £1,271,000 
relates to the UK based premises. The production 
facility accounts for £692,000 (2010: £784,000) of this 
commitment and expires in December 2018. Premises 
in Spain account for £255,000 (2010: £330,000) expiring 
in 2020 and in Germany for £1,035,000 (2010: £114,000) 
expiring in December 2015.
Of the other commitments, £893,000 (2010: £581,000) 
relates to leased vehicles all expiring within 5 years.
26. 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 £209,000 (2010: £221,000). 
Defined benefit scheme
The Group operates a partly funded non-contributory 
defined benefit pension scheme for certain employees  
in Germany. The actuarial valuation was carried out by 
Swiss Life Pensions Management GmbH at 30 June 2011. 
The major assumptions used were as follows: 
  2011 2010 
  % pa % pa 
     
 Retail price inflation 1.5 1.5 
 Salary increase rate 4.0 4.0 
 Rate of pension increase 1.5 1.5 
 Discount rate at the beginning of the year 5.0 6.0 
 Discount rate at the end of the year 5.0 5.0 
 Expected return on assets 3.8 4.1 
 Increase of social security contribution ceiling 3.7 3.7
   
 Average life expectancies    
 Male, 65 years of age at the balance sheet date 18.5 18.3 
 Female, 65 years of age at the balance sheet date 22.6 22.4 
 Male, 45 years of age at the balance sheet date 41.2 41.0 
 Female, 45 years of age at the balance sheet date 45.1 45.0
Notes to the Financial Statements 87 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
 The assets in the scheme and the expected rates of return were as follows: 
  2011 2010 
  £’000 £’000 
     
 Fair value of planned assets 1,275 1,076 
 Present value of scheme liabilities (5,389) (4,649)
    
 Deficit in the scheme (4,114) (3,573)
    
 Experience losses on plan assets (6) (9) 
 Experience gains / (losses) on plan liabilities 241 (108)
The plan assets consist of long-term insurance  
policies held to cover the German pension obligation.  
The value of the plan assets is deducted from the  
value of the pension liability to give a net liability  
of £4,114,000 (2010: £3,573,000). The basis used  
to determine the overall expected rate of return is  
the expected market return as determined by Swiss Life 
Pensions Management GmbH using the projected unit 
credit method. The actual return on plan assets for the 
year is £41,000 (2010: £37,000). The pension charge 
generates an unrecognised deferred tax asset  
of £535,000 (2010: £436,000), however this is 
unrecognised in the Group accounts as there is 
uncertainty over the recoverability.
Long term insurance policies that do not qualify as plan 
assets are recognised as separate investment assets at 
fair value and represent a re-imbursement right as defined 
by IAS 19. Management have assumed that there will be 
no expected return on these assets as was the case in 
the previous year. See Note 17 for further details of these 
investment assets.
  2011 2010 
  £’000 £’000 
     
 Amounts charged to operating profit   
 Current service costs 279 244
    
 Amounts included in other finance expenses    
 Expected return on pension scheme assets (47) (46)  
 Interest on pension scheme liabilities 243 239
 
 Net charge 196 193
    
 Amounts recognised in other comprehensive income   
 Actual return less expected return on pension scheme assets (6) (9) 
 Experience gains / (losses) arising on scheme liabilities 241 (108) 
 Changes in assumptions underlying the present value of scheme liabilities - (495) 
 
 Total amount relating to year 235 (612) 
 Opening cumulative losses (1,146) (534)
 
 Actuarial loss recognised (911) (1,146)
    
 Net movement recognised (911) (1,146)
Notes to the Financial Statements 88 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
 Movement in assets during the year 2011 2010 
  £’000 £’000 
     
 Balance as at 1 July 1,076 1,104 
 Foreign currency differences 120 (56) 
 Expected return 47 46 
 Actuarial losses (6) (9) 
 Contributions from employer 80 74 
 Assets transferred to finance benefits paid (42) (83)
 
 Balance as at 30 June 1,275 1,076
 Movement in liabilities in the year 2011 2010 
  £’000 £’000 
     
 Balance as at 1 July (4,648) (3,925) 
 Foreign currency differences (520) 265 
 Service cost (279) (244) 
 Interest cost (243) (239) 
 Actuarial gains / (losses) 241 (108) 
 Benefits paid by employer 18 15 
 Benefits paid from assets 42 83 
 Changes in assumptions - (495) 
   
 Balance as at 30 June (5,389) (4,648)
The expected contributions over the forthcoming  
year are £223,000.
History of retirement benefit obligation 
 
   2011 2010 2009 2008 2007 
  £’000 £’000 £’000 £’000 £’000 
     
 Fair value of plan assets  1,275 1,076 1,104 932 718 
 Present value of scheme  (5,389) (4,649) (3,925) (3,256) (2,900) 
 liabilities 
  
 Scheme deficit (4,114) (3,573) (2,821) (2,324) (2,182)
History of experience gains and losses 
 
  2011 2011 2010 2010 2009 2009 2008 2008 2007 2007  
  % £’000 % £’000 % £’000 % £’000 % £’000 
     
 Scheme assets           
 Difference between (0.5) (6) (0.7) (9) (0.9) (10) 2.6 23 1.5 (11) 
 the expected and 
 actual return
           
 Scheme liabilities           
 Experience gains 4.7 254 (2.1) (108) - 1 6.7 201 1.0 (30) 
 and (losses)
           
 Changes in assumptions  -  (495)  -  352  174 
 underlying present value
           
 Total amount  4.6 248 (12.1) (612) (0.2) (9) 17.7 576 4.6 133 
 recognised 
Notes to the Financial Statements 89 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
27. Issued share capital
  2011 2011 2010 2010 
  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    
 At 1 July  310,756,614 311 82,366,614 82 
 
 Issued during the year 15,000 - 228,390,000 229
    
 At 30 June 310,771,614 311 310,756,614 311
 
 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 320,619,947 321 320,604,947 321
The deferred shares have no voting rights, dividend rights 
or value attached to them.
28. Share based payments
The Group has a Savings Related Share Option Plan 
(‘SAYE’) for the benefit of all employees and Executive 
directors with 12 months continuous service. No options 
were granted in 2009/10 or 2010/11 under this scheme. 
(The 2007 SAYE carried a 15% discount while the 2008 
SAYE carried a 10% discount to the average market share 
price on the date of grant). The vesting period is three 
years and 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 (‘LTIP’) 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 
LTIP 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. 
During the year a new grant under the LTIP was 
provisionally awarded. This scheme falls under the 
initial 2005 award and therefore, all calculations and 
assumptions have been performed under the same 
conditions as the previous LTIPs.
Notes to the Financial Statements 90 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
  2011 WAEP 2011 WAEP 2010 WAEP 2010 WAEP 
  Number Price (£) Number Price (£)
 
 Outstanding at the beginning of the year 5,768,713 0.19 9,497,620 0.36 
 Granted during the year - - 740,656 0.18 
 Exercised during the year (15,000) 0.05 (1,175,000) 0.01 
 Forfeited during the year (1,102,983) 0.29 (353,508) 0.64 
 Cancelled during the year - - (2,941,055) 0.75 
 Outstanding at the year end 4,650,730 0.16 5,768,713 0.19 
 Exercisable at the year end 4,650,730 0.16 4,399,245 0.17
For the following outstanding share options disclosure, 
LTIP awards, with a nil exercise price have been disclosed 
separately to avoid distorting the weighted average 
exercise price (WAEP):
Included in the above numbers outstanding at 30 June 
2011 are 3,752,306 (2010: 3,993,386) 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 14p (2010: 14p).
The share options outstanding at the end of the year  
have a weighted average remaining contractual life  
of 2.3 years (2010: 3.2 years) and have the following  
range of exercise prices:
  30 June 2011 30 June 2010  
 Exercise price (p) Number Number 
     
 0.1-5 3,025,000 3,258,580 
 6-45 1,498,986 2,276,136 
 46-120 126,744 233,997
  
  4,650,730 5,768,713
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:
 Date of  Vesting Date of Expected Exercise Risk-free Share price Volatility of Fair value Number 
 grant period (yrs)  vesting  life (yrs) price (£) rate at grant (£) share price  (£)  outstanding
         
 10/04/08 3 01/05/11 3.2 0.3060 5% 0.34 42% 0.13 82,812 
 26/03/07 3 01/05/10 3.2 0.9945 5% 1.17 30% 0.41 - 
 11/01/06 3 01/03/09 3.2 0.6400 5% 0.75 30% 0.26 -
•	 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.
Notes to the Financial Statements 91 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Outstanding shares provisionally awarded under the  
Long Term Incentive Plan, with a nil exercise price,  
are as follows:
 Date of  Vesting Date of Expected Exercise Share price Vesting Fair value Number 
 grant period (yrs)  vesting  life (yrs) price (£) at grant (£) probability  (£)  outstanding
         
 07/12/10 3 07/12/13 3 0.0000 0.091 41.5 0.038 3,690,000 
 20/07/09 3 20/07/12 3 0.0000 0.148 41.5 0.061 4,254,000 
 21/12/07 3 27/12/10 3 0.0000 0.385 41.5 0.160 - 
 09/10/06 3 09/10/09 3 0.0000 1.000 41.5 0.415 - 
 14/12/05 3 14/12/08 3 0.0000 0.695 41.5 0.288 -
  2011 2010  
  Number Number 
     
 Outstanding at the beginning of the year 6,669,124 2,469,308 
 Awarded during the year 4,320,000 6,090,000 
 Forfeited during the year (2,397,447) (1,101,451) 
 Cancelled during the year (647,677) (788,733) 
 Outstanding at the year end 7,944,000 6,669,124
The fair value of the Long Term Incentive Plan shares 
has been arrived at using the share price at the date of 
grant and applying a vesting probability for the market 
performance conditions. The assumptions made to value 
shares awarded were as follows:
The share-based payment charge assumes an employee 
attrition rate of 5% per annum.
The Group recognised total expenses of £147,000  
(2010: £193,000) related to equity-settled share  
based payment transactions during the year. 
Notes to the Financial Statements 92 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
29. Acquisitions
As part of it’s strategy to strengthen its sales base outside 
Germany, on 1 July 2010, Allergy Therapeutics plc acquired 
100% of the issued share capital of Teomed AG. Teomed 
was established in 1989 and specialises in the field of 
allergy and is the distributor for the Company’s products 
and other company’s products in the Swiss market. 
The total consideration was CHF1,200,000 (£740,000)  
and comprised an initial cash payment of CHF800,000 
(£494,000) on signing, and a deferred payment of 
CHF400,000 (£246,000), which was paid into an escrow 
account and paid out twelve months after the date of 
completion. The deferred consideration was contingent  
on the basis that existing distributor agreements 
continued for a period of at least one year from the 
acquisition date. The allocation of the purchase price to 
the assets and liabilities of Teomed AG at the acquisition 
date was as follows:
  Pre- acquisition  Adjustment to Recognised at  
   carrying amount fair value acquisition date 
  £’000 £’000 £’000
     
 Property, plant and equipment 15 - 15 
 
 Intangible assets - 884 884
 
 Total non-current assets 15 884 899
 
 Trade and other receivables 217 (10) 207 
 
 Inventories 133 - 133 
 
 Cash and cash equivalents 3 - 3
 
 Total Assets 368 874 1,242
 
 Trade and other payables (139) - (139) 
 
 Deferred taxation liability - (177) (177)
 
 Net identifiable assets and liabilities 229 697 926
 
 Gain on bargain purchase   (186)
  
 Cost of acquisition   740
Acquisition costs incurred amounted to £120,000  
and were expensed in the year ended 30 June 2010. 
These were shown under administration costs within  
the consolidated income statement in that year.
The adjustment to fair value on trade and other 
receivables related to trade debtors which existed  
at the acquisition date.
The acquisition gave rise to a gain on bargain purchase 
primarily due to the fair valuation of the existing 
distribution agreements exceeding the consideration paid. 
These intangible assets represent the present value of the 
future cashflows expected to arise from the agreements. 
They were not recognised on the balance sheet of the 
acquired company. The gain has been included in Other 
Income in the Group’s consolidated income statement  
in the year ending 30 June 2011.
The pre-existing distributor agreement between the  
Group and Teomed AG had expired prior to the acquisition 
taking place.
The acquisition of Teomed AG took place on 1 July 2010  
and as a consequence traded for the full year  
as a member of the Group. It contributed £2.1m in 
revenue and £0.1m of the Group’s operating profit. 
Notes to the Financial Statements 93 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
30. 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 2011 was €107,426; 
£96,493 (2010: €107,426; £86,999).
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. 
31. Capital commitments
The Group’s capital commitments at the end of the 
financial period, for which no provision has been made, 
are as follows: 
Included in the above is £154,000 for ongoing factory 
refurbishments in the UK (2010: £192,000); £28,000 for 
new plant and machinery (2010: £29,000) and £55,000  
for IT equipment and systems upgrades (2010: £31,000).
  30 June 2011 30 June 2010  
  £’000 £’000
  
 Capital commitments 237   252
Notes to the Financial Statements 94 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
32. 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 pages  
50 to 53.
At 30 June 2011, the Company’s subsidiary undertakings 
were:
33. Events after the balance sheet date
As part of its ongoing strategy to enter the Emerging 
Markets, in August 2011 the Group set up its own 100% 
owned subsidiary in Argentina.
 Subsidiary Country of  Principal activity Percentage of Class of shares held  
 undertaking incorporation  shares held
 
 Allergy Therapeutics  UK Holding Company 100 Ordinary and deferred 
 (Holdings) Ltd
  
 Allergy Therapeutics  UK Manufacture and sale of 100 Ordinary 
 UK) Ltd  pharmaceutical products
 
 Allergy Therapeutics UK Dormant 100 Ordinary 
 Development Ltd
 
 Bencard Allergie  Sale of pharmaceutical 100 Ordinary 
 GmbH Germany products
 
 Bencard Allergie Austria Sale of pharmaceutical 100 Ordinary 
 (Austria) GmbH  products
 
 Allergy Therapeutics Italy Sale of pharmaceutical 100 Ordinary 
 Italia s.r.l.  products
 
 Allergy Therapeutics Spain Sale of pharmaceutical 100 Ordinary 
 Iberica S.L.  products
 
 Teomed A.G. Switzerland Sale of pharmaceutical 100 Ordinary 
   products
 
 Allergy Therapeutics Netherlands Sale of pharmaceutical 100 Ordinary 
 Netherlands BV  products
Notes to the Financial Statements 95 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
We have audited the parent company financial statements 
of Allergy Therapeutics plc for the year ended 30 June 
2011 which comprise the parent company balance sheet 
and the related notes. The financial reporting framework 
that has been applied in their preparation is applicable 
law and United Kingdom Accounting Standards (United 
Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, 
as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. 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 auditor
As explained more fully in the Directors’ Responsibilities 
Statement set out on page 48, the directors are 
responsible for the preparation of the parent company 
financial statements and for being satisfied that they 
give a true and fair view. Our responsibility is to audit 
and express an opinion on the parent company financial 
statements in accordance with applicable law and 
International Standards on Auditing (UK and Ireland). 
Those standards require us to comply with the Auditing 
Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial 
statements is provided on the APB’s website at  
www.frc.org.uk/apb/scope/private.cfm
Opinion on financial statements
In our opinion the parent company financial statements:
•	 give a true and fair view of the state of the company’s  
 affairs as at 30 June 2011; 
•	 have been properly prepared in accordance with United  
 Kingdom Generally Accepted Accounting Practice; and
•	 have been prepared in accordance with the   
 requirements of the Companies Act 2006.
Opinion on other matter prescribed by  
the Companies Act 2006
In our opinion the information given in the Directors’ 
Report for the financial year for which the financial 
statements are prepared is consistent with the parent 
company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following 
matters where the Companies Act 2006 requires us  
to report to you if, in our opinion:
•	 adequate accounting records have not been kept  
 by the parent company, or returns adequate for our  
 audit have not been received from branches not  
 visited by us; or
•	 the parent company financial statements are not in  
 agreement with the accounting records and returns; or
•	 certain disclosures of directors’ remuneration specified  
 by law are not made; or
•	 we have not received all the information and   
 explanations we require for our audit.
Other matter
We have reported separately on the group financial 
statements of Allergy Therapeutics plc for the year  
ended 30 June 2011. 
Christian Heeger
Senior Statutory Auditor for and on behalf of  
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Gatwick
16 September 2011
Independent Auditor’ s Report to the Members of Allergy Therapeutics plc
Independent Auditor’s Report to the Members of Allergy Therapeutics plc (Company) 96 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
Company Balance Sheet  
   30 June 2011 30 June 2010  
    Restated 
   £’000 £’000 
  Note
      
 Fixed assets     
 Investments 3 1,444 1,297
     
 Current assets     
 Debtors: amounts falling due within one year 4 731 646 
     
 Current liabilities     
 Creditors: amounts falling due within one year 5 - (39)
     
 Net current assets  731 607 
 
 Total assets less current liabilities  2,175 1,904
     
 Net assets  2,175 1,904
 
 Capital and reserves     
 Called up share capital 6 321 321 
 Share premium 7 58,705 58,704 
 Other reserves – shares held by EBT 7 67 67 
 Other reserves – share based payments 7 1,398 1,324 
 Profit and loss account 7 (58,316) (58,512)
     
 Total equity     2,175 1,904
These financial statements were approved by the Board of 
Directors on 16 September 2011 and were signed on its 
behalf by
   Manuel Llobet 
   Chief Executive Officer 
    
 
 
  Ian Postlethwaite 
  Finance Director
  Registered number: 05141592
Company Balance Sheet 97 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
1. Accounting policies
Basis of preparation
The separate financial statements of the Company  
are presented as required by the Companies Act 2006.  
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. 
Restatement of previous year figures
During the period the amendments to IFRS 2 and FRS 20, 
Group Cash-settled Share-based Payment Transactions, 
were adopted by the Group and Company respectively.
The main purpose of the amendments is to ensure that the 
costs associated with share based payments are included in 
the accounts of the individual Group subsidiary which receives 
the goods or services from the supplier (including employees). 
The amendment has been applied retrospectively leading  
to a restatement of prior period retained reserves, the full 
details of which are set out in Note 14.The amendments  
have had no effect on the Group balances.
Going Concern
For the second year running, the Group has reported an 
operating profit, however for the financial years ended 
2007 to 2009 primarily as a consequence of its investment 
in research and development activities, it reported losses. 
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 2012 and 
30 June 2013. 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 Group’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. 
There are no shares remaining in the EBT.
Share based payments
The Company has adopted the amendment to FRS 20 
(Group cash-settled share based payment transactions). 
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 now recognised in 
the financial statements of the subsidiary which receives  
the goods or service from the supplier (including employees), 
however the share based payment reserve remains in the 
Company’s 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 98 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
2. Loss for the financial period
The Company has taken advantage of s.408 of the 
Companies Act 2006 and has not included its own  
profit and loss account in these financial statements.  
The Company’s profit for the period was £122,000 
(restated 2010: £25,465,000 loss).
   Shares in subsidiary undertaking 
   Restated 
   £’000
  
 Cost  
 Investment brought forward   1,297 
 Additions  147
  
 Investment carried forward  1,444
3. Investments
 Subsidiary Country of  Principal activity Percentage of Class of shares held  
 undertaking incorporation  shares held
 
 Allergy Therapeutics  UK Holding Company 100 Ordinary and deferred 
 (Holdings) Ltd
  
 Allergy Therapeutics  UK Manufacture and sale of 100 Ordinary 
 UK) Ltd  pharmaceutical products
 
 Allergy Therapeutics UK Dormant 100 Ordinary 
 Development Ltd
 
 Bencard Allergie  Sale of pharmaceutical 100 Ordinary 
 GmbH Germany products
 
 Bencard Allergie Austria Sale of pharmaceutical 100 Ordinary 
 (Austria) GmbH  products
 
 Allergy Therapeutics Italy Sale of pharmaceutical 100 Ordinary 
 Italia s.r.l.  products
 
 Allergy Therapeutics Spain Sale of pharmaceutical 100 Ordinary 
 Iberica S.L.  products
 
 Teomed A.G. Switzerland Sale of pharmaceutical 100 Ordinary 
   products
 
 Allergy Therapeutics Netherlands Sale of pharmaceutical 100 Ordinary 
 Netherlands BV  products
At 30 June 2011 the Company’s subsidiary  
undertakings were:
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.
In July 2010 the Group acquired a 100% owned subsidiary 
in Switzerland and also set up a new 100% owned 
limited company in the Netherlands. See Note 29 in the 
consolidated financial statements for further details.
As part of its ongoing strategy to enter the Emerging 
Markets, in August 2011 the Group set up its own 100% 
owned subsidiary in Argentina.
Notes to the Company Balance Sheet 99 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
4. Debtors
  30 June 2011 30 June 2010  
  £’000 £’000
  
 Amounts falling due within one year   
 Amount owed by subsidiary undertakings 722 642 
 Prepayments 9 4
   
  731 646
 
 
The amount owed by subsidiary undertakings is stated net  
of provisions of £57,849,000 (2010: £58,055,000).
5. Creditors – amounts falling due within one year  
  
  30 June 2011 30 June 2010  
  £’000 £’000
  
 Taxation and social security - 39
6. Called up share capital
Full details of the Company’s share capital are set out  
in Note 27 of the consolidated financial statements.
Notes to the Company Balance Sheet 100 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
7. Reserves   
 
  Profit and loss account 
  Restated 
  £’000
   
 At 30 June 2010 (58,512) 
 Retained profit for the year 122 
 Lapsed share based payments transferred to retained losses 74
  
 At 30 June 2011 (58,316)
 
   
  Share premium account 
  £’000
  
 At 30 June 2010 58,704 
 Shares issued in the year 1
  
 At 30 June 2011 58,705
 
    
  Other reserve – share based payments 
  £’000
  
 At 30 June 2010 1,324 
 Provision in year for share based payments 148 
 Lapsed share based payments transferred from retained losses (74)
  
 At 30 June 2011 1,398
 
 
  Other reserve – EBT 
  £’000
  
 At 30 June 2010 67 
 Sale of shares by EBT -
  
 At 30 June 2011 67
8. Share based payments
Full details of the Company’s share based payments 
are set out in Note 28 of the consolidated financial 
statements.
9. Directors’ emoluments
Full details of the Company’s directors’ emoluments  
are set out in the Directors’ Remuneration Report in  
the Report of the Directors.
Notes to the Company Balance Sheet 101 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
10. Reconciliation of movement in shareholders’ funds  
 
  Year to 30 June 2011 Year to 30 June 2010 
   Restated  
  £’000 £’000
     
 Profit/ (loss) for the financial year  122 (25,465) 
 Issue of shares from EBT  - 
 Share based payments 148 193 
 Shares Issued      1 25,740
                
 Net addition to shareholders’ funds 271 468 
 
 Opening shareholders’ funds 1,904 383  
 
 Reallocation of prior periods share based payments charges - 1,053
                 
 Closing shareholders’ funds 2,175 1,904
11. Contingent Liabilities
Full details of the Company’s contingent liabilities are set 
out in Note 30 of the consolidated financial statements.
12. Related party transactions
In accordance with FRS 8 on Related Party transactions, 
details of transactions with the Company’s subsidiaries 
are not disclosed as they are included in the consolidated 
financial statements. The consolidated financial 
statements include the results of the Company.  
Details of the related party transactions can be found  
in Note 32 to the consolidated financial statements.
13. Events after the balance sheet date
Full details of events after the balance sheet date are set 
out in Note 33 of the consolidated financial statements.
Notes to the Company Balance Sheet 102 © Allergy Therapeutics plc Annual Report & Accounts 2011   www.allergytherapeutics.com www.pollinex.com 
  As Originally Reported Amount of Restatement As Restated 
  2010  2010 2010  
  £’000 £’000 £’000 
 Company Balance Sheet
 
 Fixed asset investment 51 1,246 1,297 
 Total assets less current liabilities 658 1,246 1,904 
 Net assets 658 1,246 1,904 
 Capital and reserves    
 Profit and loss account (59,758) 1,246 (58,512)
 
 Note 2: Loss for the financial period (25,658) 193 (25,465)
 
 Note 3: Investments    
 Investments brought forward 51 1,246 1,297
 
 Note 7: Reserves    
 Profit and loss account as at 30 June 2010 (59,758) 1,246 (58,512)
 
 Note 10: Reconciliation of movement in 
 shareholders funds    
 Reallocation of prior periods share - 1,246 1,246 
 based payments charges
14. Restatement of prior year figures
During the period the Company adopted the amendment 
made to FRS 20, as detailed under Note 1 – accounting 
policies (page 69). This amendment has had no effect on 
the Group’s financial statements; however because the 
treatment has been applied retrospectively, some of the 
prior period figures have changed as detailed below.
Notes to the Company Balance Sheet 103 © Allergy Therapeutics plc Annual Report & Accounts 2011 www.allergytherapeutics.com www.pollinex.com 
Shareholder Information
Registered office
Dominion Way
Worthing
West Sussex
BN14 8SA
Advisers
Nominated Adviser and Broker
Nomura Code Securities
1 Carey Lane
London
EC2V 8AE
Auditor
Grant Thornton UK LLP
The Explorer Building
Fleming Way
Manor Royal
Crawley 
West Sussex
RH10 9GT
Lawyers
Covington and Burling LLP
265 Strand
London
WC2R 1BH
Actuary
SLPM Swiss Life Pensions Management GmbH
Swiss Life Gruppe
Berliner Strasse 85
80805 München
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 Allergy Therapeutics plc 
(Registered Company Number 5141592)
Dominion Way
Worthing
West Sussex
BN14 8SA
Tel:  +44 (0)1903 844720
Fax: +44 (0)1903 844726
www.allergytherapeutics.com   www.pollinex.com