Allergy Therapeutics plc
Annual Report & Accounts
Allergy Therapeutics plc
Dominion Way
Worthing
West Sussex
BN14 8SA
T: +44 (0)1903 844720
F: +44 (0)1903 844726
2005
www.allergytherapeutics.com
Allergy Therapeutics plc Annual Report & Accounts 2005
Allergy Therapeutics plc (ATp) is a specialty pharmaceutical 
company focused upon the treatment and prevention  
of allergy. Our mission is to establish a position  
as a mainstream supplier of novel therapies for  
the prevention and treatment of allergy with  
a comprehensive range of innovative, patent  
protected, high value allergy vaccine products.
C o n t e n t s
01 Highlights
02 Chairman’s Statement
03 Chief Executive’s Review
08 Financial Review
10 Board of Directors
12 Shareholder Information
13 Directors’ Report
17 Directors’ Remuneration Report
20  Report of the Independent Auditors to  
the Members of Allergy Therapeutics plc
21 Consolidated Profit and Loss Account
22 Consolidated Balance Sheet
23 Company Balance Sheet
24 Consolidated Cash Flow Statement
24  Reconciliation of Net Cash Flow  
to Movement in Net Funds
25  Consolidated Statement of Total  
Recognised Gains and Losses
26 Notes to the Financial Statements Allergy Therapeutics plc
Annual Report & Accounts
Allergy Therapeutics plc
Dominion Way
Worthing
West Sussex
BN14 8SA
T: +44 (0)1903 844720
F: +44 (0)1903 844726
2005
www.allergytherapeutics.com
Allergy Therapeutics plc Annual Report & Accounts 2005
Allergy Therapeutics plc (ATp) is a specialty pharmaceutical 
company focused upon the treatment and prevention  
of allergy. Our mission is to establish a position  
as a mainstream supplier of novel therapies for  
the prevention and treatment of allergy with  
a comprehensive range of innovative, patent  
protected, high value allergy vaccine products.
C o n t e n t s
01 Highlights
02 Chairman’s Statement
03 Chief Executive’s Review
08 Financial Review
10 Board of Directors
12 Shareholder Information
13 Directors’ Report
17 Directors’ Remuneration Report
20  Report of the Independent Auditors to  
the Members of Allergy Therapeutics plc
21 Consolidated Profit and Loss Account
22 Consolidated Balance Sheet
23 Company Balance Sheet
24 Consolidated Cash Flow Statement
24  Reconciliation of Net Cash Flow  
to Movement in Net Funds
25  Consolidated Statement of Total  
Recognised Gains and Losses
26 Notes to the Financial Statements Soluble allergens bind
to allergen specific IgE Inflammatory mediators released
Histamine, IL4, IL5,IL6, IL13, TNF ,
Leucotrienes and Prostaglandins
Rhinitis, conjunctivitis, sinusitis, 
allergic asthma, anaphylaxis.
More allergen 
specific IgE
Processed by antigen 
presenting cells such 
as B-cells macrophages 
neutrophils
Allergen epitopes
presented to committed
T-cell via MHC Class II
Committed
T-helper cells
Committed
B-cells
Pollen
House dust mites
Mould spores
Soluble 
allergens
IL4, IL13
IL4, IL13
IL5, IL13,
Eosinophil
recruitment
The 
vicious 
circle
Mast cells
Allergoids do not 
react with IgE No Inflammatory mediators 
Histamine production inhibited
Permanent reduction in allergic
symptoms such as: rhinitis, conjunctivitis, 
sinusitis, allergic asthma.
No specific 
IgE produced
Mast cells
Blocking antibodies
IgG1, IgG4 and IgA
produced
Processed by antigen 
presenting cells 
activated via TLR4 and TLR2 
agonist—MPL
®
 and tyrosine
Allergen epitopes
presented to committed
T-cell via MHC Class II
Committed
T-helper cells
Committed
T-helper cells
Naive
T cells
Clonal 
selection & 
multiplication
DC
Activated dendritic
cells migrate to
germinal centres
Class switched
B-cells
Pollinex
®
 Quattro
vaccines
Soluble allergoids
with MPL
®
IL12
IL12
Interferon
Anti-inflammatory 
mediators TGFß and IL10 
synthesised
The 
virtuous 
circle
γ 
The anatomy of allergy
The Science
An allergy is an immune hypersensitivity 
reaction in which the body’s natural defences 
react inappropriately to specific proteins or 
allergens from common substances such as 
pollen, mould spores, peanuts and many more. 
Allergic symptoms may vary depending on the nature 
and presentation of the specific allergens but all 
allergens, in some way or other, cause inflammation 
in mucosal surfaces such as those in the eyes, nose, 
upper and lower respiratory tracts. These symptoms are 
typically referred to as ‘hay fever‘ if they affect the eyes 
and nose, and allergic asthma if they affect the lower 
respiratory tract. Additionally, allergens such as house 
dust mite, whilst affecting both the upper and lower 
respiratory tract, can also cause allergic eczema through 
skin contact whilst food allergens also affect the gastro-
intestinal tract. Allergy Therapeutics currently focuses 
on vaccine treatments for the major problem of allergies 
caused by inhaled airborne allergens. 
What are allergies? Allergy vaccination
Allergy vaccination or immunotherapy  
treats the underlying cause of allergic 
disease, providing both symptomatic relief 
and the potential of a permanent cure. 
To achieve this the vaccine must modify the immune 
response by blocking the interaction of allergens 
with IgE and must prevent the production of 
allergen-specific IgE antibodies. Traditionally, this has 
required long courses of injections with gradually 
increasing doses of allergen to build the patient’s 
tolerance to the allergenic challenge whilst avoiding 
serious allergic reactions to the vaccine. Allergy 
Therapeutics has pioneered short–course vaccination 
in which the allergens are modified (allergoids) 
to prevent reaction with IgE, combined with the 
biocompatible depot L-tyrosine and a powerful toll 
receptor agonist (TLR4/TLR2) – monophosphoryl 
lipid A (MPL
®
) as adjuvants. These rapidly induce 
profound changes in the immune response to the 
allergens whilst substantially reducing the risk of 
allergic reactions.
Pollinex
®
 Quattro vaccines
Phase I and II clinical studies have included over 850 hay fever 
patients and have demonstrated significant clinical activity 
of Pollinex
®
 Quattro vaccines (4 injections). In a ‘Clinical Use’ 
study of over 3000 patients, approximately 90% demonstrated 
improvements in clinical symptoms. Patients also showed little 
or no seasonal rise in IgE and a significant increase in blocking 
IgG antibodies compared with the placebo patients where the 
reverse was true. In particular, production of allergen-specific  
IgG4 antibodies was correlated with successful treatment. 
T-helper cells isolated during the pollen season from patients 
treated with active vaccine showed an allergen-specific, highly 
significant, rise in the production of 
γ
 interferon and no seasonal 
rise in IL4 and IL5. In patients treated with the placebo the 
reverse was true. These results are entirely consistent with 
effective treatment of the underlying immunological cause of 
pollen allergy. Phase III registration trials are planned for the next 
pollen season in Europe and North America.
The key characteristic that distinguishes allergic individuals is 
the production of large quantities of IgE antibodies specific 
to the sensitising allergens. IgE is naturally important in 
handling parasitic infections and is highly bound to mast  
cells acting as a trigger for this class of immune cell. When 
the target allergens crosslink these bound antibodies, the 
mast cells release a wide range of inflammatory materials, 
including histamine, which are responsible for the allergy 
symptoms. Additionally, this process stimulates the production 
of further IgE antibodies. Antihistamines are effective in 
partially controlling allergic symptoms but have no effect on 
the course and development of the underlying disease which 
can progressively become worse.
Our product pipeline
Product Pre-Clinical Phase I Phase II Phase III Registration
Pollinex
®
 Quattro Grass
Pollinex
®
 Quattro Tree
Pollinex
®
 Quattro Ragweed
Pollinex
®
 Quattro Japenese Cedar
Pollinex
®
 Quattro Mite
Sublingual MPL
® Soluble allergens bind
to allergen specific IgE Inflammatory mediators released
Histamine, IL4, IL5,IL6, IL13, TNF ,
Leucotrienes and Prostaglandins
Rhinitis, conjunctivitis, sinusitis, 
allergic asthma, anaphylaxis.
More allergen 
specific IgE
Processed by antigen 
presenting cells such 
as B-cells macrophages 
neutrophils
Allergen epitopes
presented to committed
T-cell via MHC Class II
Committed
T-helper cells
Committed
B-cells
Pollen
House dust mites
Mould spores
Soluble 
allergens
IL4, IL13
IL4, IL13
IL5, IL13,
Eosinophil
recruitment
The 
vicious 
circle
Mast cells
Allergoids do not 
react with IgE No Inflammatory mediators 
Histamine production inhibited
Permanent reduction in allergic
symptoms such as: rhinitis, conjunctivitis, 
sinusitis, allergic asthma.
No specific 
IgE produced
Mast cells
Blocking antibodies
IgG1, IgG4 and IgA
produced
Processed by antigen 
presenting cells 
activated via TLR4 and TLR2 
agonist—MPL
®
 and tyrosine
Allergen epitopes
presented to committed
T-cell via MHC Class II
Committed
T-helper cells
Committed
T-helper cells
Naive
T cells
Clonal 
selection & 
multiplication
DC
Activated dendritic
cells migrate to
germinal centres
Class switched
B-cells
Pollinex
®
 Quattro
vaccines
Soluble allergoids
with MPL
®
IL12
IL12
Interferon
Anti-inflammatory 
mediators TGFß and IL10 
synthesised
The 
virtuous 
circle
γ 
The anatomy of allergy
The Science
An allergy is an immune hypersensitivity 
reaction in which the body’s natural defences 
react inappropriately to specific proteins or 
allergens from common substances such as 
pollen, mould spores, peanuts and many more. 
Allergic symptoms may vary depending on the nature 
and presentation of the specific allergens but all 
allergens, in some way or other, cause inflammation 
in mucosal surfaces such as those in the eyes, nose, 
upper and lower respiratory tracts. These symptoms are 
typically referred to as ‘hay fever‘ if they affect the eyes 
and nose, and allergic asthma if they affect the lower 
respiratory tract. Additionally, allergens such as house 
dust mite, whilst affecting both the upper and lower 
respiratory tract, can also cause allergic eczema through 
skin contact whilst food allergens also affect the gastro-
intestinal tract. Allergy Therapeutics currently focuses 
on vaccine treatments for the major problem of allergies 
caused by inhaled airborne allergens. 
What are allergies? Allergy vaccination
Allergy vaccination or immunotherapy  
treats the underlying cause of allergic 
disease, providing both symptomatic relief 
and the potential of a permanent cure. 
To achieve this the vaccine must modify the immune 
response by blocking the interaction of allergens 
with IgE and must prevent the production of 
allergen-specific IgE antibodies. Traditionally, this has 
required long courses of injections with gradually 
increasing doses of allergen to build the patient’s 
tolerance to the allergenic challenge whilst avoiding 
serious allergic reactions to the vaccine. Allergy 
Therapeutics has pioneered short–course vaccination 
in which the allergens are modified (allergoids) 
to prevent reaction with IgE, combined with the 
biocompatible depot L-tyrosine and a powerful toll 
receptor agonist (TLR4/TLR2) – monophosphoryl 
lipid A (MPL
®
) as adjuvants. These rapidly induce 
profound changes in the immune response to the 
allergens whilst substantially reducing the risk of 
allergic reactions.
Pollinex
®
 Quattro vaccines
Phase I and II clinical studies have included over 850 hay fever 
patients and have demonstrated significant clinical activity 
of Pollinex
®
 Quattro vaccines (4 injections). In a ‘Clinical Use’ 
study of over 3000 patients, approximately 90% demonstrated 
improvements in clinical symptoms. Patients also showed little 
or no seasonal rise in IgE and a significant increase in blocking 
IgG antibodies compared with the placebo patients where the 
reverse was true. In particular, production of allergen-specific  
IgG4 antibodies was correlated with successful treatment. 
T-helper cells isolated during the pollen season from patients 
treated with active vaccine showed an allergen-specific, highly 
significant, rise in the production of 
γ
 interferon and no seasonal 
rise in IL4 and IL5. In patients treated with the placebo the 
reverse was true. These results are entirely consistent with 
effective treatment of the underlying immunological cause of 
pollen allergy. Phase III registration trials are planned for the next 
pollen season in Europe and North America.
The key characteristic that distinguishes allergic individuals is 
the production of large quantities of IgE antibodies specific 
to the sensitising allergens. IgE is naturally important in 
handling parasitic infections and is highly bound to mast  
cells acting as a trigger for this class of immune cell. When 
the target allergens crosslink these bound antibodies, the 
mast cells release a wide range of inflammatory materials, 
including histamine, which are responsible for the allergy 
symptoms. Additionally, this process stimulates the production 
of further IgE antibodies. Antihistamines are effective in 
partially controlling allergic symptoms but have no effect on 
the course and development of the underlying disease which 
can progressively become worse.
Our product pipeline
Product Pre-Clinical Phase I Phase II Phase III Registration
Pollinex
®
 Quattro Grass
Pollinex
®
 Quattro Tree
Pollinex
®
 Quattro Ragweed
Pollinex
®
 Quattro Japenese Cedar
Pollinex
®
 Quattro Mite
Sublingual MPL
® 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 0 1
+20 %
Gr os s	 s ale s	 this	 y e ar	 up	 20%	
on	 las t	 y e ar	 t o	 £22.9m.
+97 %
O p e r a t i n g 	 p r o f i t 	 ( b e f o r e 	 R & D ,	
r e b a t e s 	 a n d 	 e x c e p t i o n a l s ) 	 u p	
9 7 % 	 o n 	 la s t 	 y e a r 	 t o 	 £ 6 . 1 m .
Highlights
S u c c e s s f u l	 I PO	 r a i s i n g	 £ 1 5 m	 n e t	 o f	 e x p e n s e s
G r o s s	 s a l e s	 u p	 2 0 %	 t o	 £ 2 2 . 9 m
Op e r a t i n g	 p r o f i t	 b e f o r e	 R & D ,	 r e b a t e s	 a n d	
e x c e p t i o n a l s	 u p	 9 7 %	 t o	 £ 6 . 1 m
S t a r t	 o f	 f i r s t	 p i v o t a l	 s t u d y	 f o r	 r e g i s t r a t i o n	 	
o f	 P o l l i n e x
®
	 Q u a t t r o
F i r s t	 o u t l i c e n s e	 o f	 P o l l i n e x
®
	 Q u a t t r o
P o l l i n e x
®
	 Q u a t t r o	 a w a r d e d	 p r e s t i g i o u s	 	
M M W	 A r z n e i m i t t e l p r e i s	 f o r	 p h a r m a c e u t i c a l	
i n n o v a t i o n
U K	 p a t e n t	 g r a n t e d	 f o r	 s u b l i n g u a l	 ( u n d e r	 	
t h e	 t o n g u e )	 u s e	 o f	 M P L
®
	 a s	 a n	 a d j u v a n t	 	
t o	 i m m u n o l o g i c a l	 t h e r a p i e s
G e r m a n	 r e b a t e s	 r e d u c e d	 t o	 6 %	 f r o m	 	
J a n u a r y	 2 00 5 0 2 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	
Job:	 [6536/Allergy	Therapeutics	Annual	Report	Front]	 Proof:	 [03]
Operator:	[Kathleen]	 Date:	 [20/09/05]
Server:	 [studio	II]
Chairman’s 
Statement
Our History
1 9 3 4	 F o u n d at i o n	 o f	 C L	 B e n c a r d	 	
a	 s p e c i a l i s t	 a l l e r g y	 co m p a n y	 i n	 	
D e v o n ,	 E n g l a n d .
1 9 4 9	 B e e c h a m	 G r o u p	 L t d	 a c q u i r e	 	
C L	 B e n c a r d .
1 97 2	 L a u n c h	 o f	 P o l l i n e x
®
	 v a c c i n e	
i n	 t h e	 U K	 co n t a i n i n g	 g r a s s	 p o l l e n	
a l l e r g e n s .
1 97 5	 L a u n c h	 o f	 P o l l i n e x
®
	 R	
( R a g w e e d )	 f o r	 t h e	 C a n a d i a n	 m a r k et .
1 9 9 4 	 L a u n c h 	 o f 	 O r a l v a c
®
, 	 a	 	
su b l i n g u a l 	 a l l e r g y	 d e s e n s i t i s i n g	 	
v a c c i n e	 i n	 G e r m a n y .
1 9 9 8 	 M a n a g e m e n t 	 b u y - i n 	 a c q u i r e s	
B e n c a r d 	 b u s i n e s s 	 f r o m 	 S m i t h k l i n e	
B e e c h a m 	 t o 	 f o r m 	 A l l e r g y 	 T h e r a p e u t i c s	
L t d 	 ( A T L ) .
1 9 9 9 	 L a u n c h	 o f	 P o l l i n e x
®
	 Q u at t r o	 	
i n	 G e r m a n y .
2 0 0 3	 L a u n c h	 o f	 O r a l v a c
®
	 P l u s .
2 0 0 4 	 P o l l i n e x
®
	 Q u at t r o	 r e c e i v e s	
M M W	 P h a r m a c e u t i c a l s	 a w a r d .
2 0 0 4	 T h e	 C o m p a n y	 l i s t s	 o n	 A I M .
2 0 0 5	 S i g n	 f i r s t	 o u t l i c e n s i n g	 d ea l	 	
w i t h	 A l l e r p h a r m a	 f o r	 P o l l i n e x
®
	 Q u at t r o	
i n	 C a n a d a .
T h i s 	 h a s 	 b e e n 	 a 	 y e a r 	 o f 	 s i g n i f i c a n t 	 c h a n g e 	 f o r 	 A l l e r g y	
T h e ra p e u t i c s . 	 W e 	 h a v e 	 u n d e r g o n e 	 a 	 m a j o r 	 t ra n s i t i o n 	 f r o m	
b e i n g 	 a 	 p ri v a t e l y - o w n e d 	 c o m p a n y 	 t o 	 a 	 p u b l i c 	 c o m p a n y	
l i s t e d 	 o n 	 t h e 	 L o n d o n 	 S t o c k 	 E x c h a n g e . 	 F r o m 	 h a v i n g 	 p l a n s	
f o r 	 c l i n i c a l 	 t ri a l s , 	 w e 	 n o w 	 h a v e 	 p a t i e n t s 	 e n r o l l e d 	 a n d 	 b e i n g	
t r e a t e d 	 i n 	 a 	 f i r s t 	 p i v o t a l 	 s t u d y .
I n 	 Oc t o b e r 	 2 0 0 4 	 A l l e r g y 	 T h e ra p e u t i c s 	 G r o u p 	 l i s t e d 	 o n	
t h e 	 A l t e r n a t i v e 	 I n v e s t m e n t 	 M a r k e t 	 o f 	 t h e 	 L o n d o n 	 S t o c k	
E x c h a n g e , 	 ra i s i n g 	 £ 1 5 	 m i l l i o n 	 n e t 	 o f 	 e x p e n s e s . 	 T h e	
d e c l a r e d 	 u s e 	 o f 	 p r o c e e d s 	 w a s 	 t o 	 a c c e l e ra t e 	 t h e 	 c l i n i c a l	
d e v e l o p m e n t 	 o f 	 t h e 	 P o l l i n e x
®
	 Q u a t t r o 	 fa m i l y 	 o f 	 p r o d u c t s ,	
t h e 	 C o m p a n y ’ s 	 i n n o v a t i v e 	 u l t ra - s h o r t - c o u r s e 	 ( 4 	 s h o t s	
t o t a l 	 p r e - s e a s o n a l l y ) 	 a l l e r g y 	 v a c c i n e s 	 b a s e d 	 o n 	 t h e 	 TR L 4	
a g o n i s t 	 v a c c i n e 	 a d j u v a n t 	 M P L
®
. 	 S i n c e 	 t h e n 	 e x c e l l e n t	
p r o g r e s s 	 h a s 	 b e e n 	 m a d e ; 	 r e l a t i o n s h i p s 	 w i t h 	 v a ri o u s	
r e g u l a t o r y 	 b o d i e s 	 e s t a b l i s h e d , 	 t h e 	 ‘ p a t h 	 t o 	 r e g i s t ra t i o n ’	
c l a ri f i e d 	 a n d 	 a 	 f i r s t 	 p i v o t a l 	 c l i n i c a l 	 t ri a l 	 c o m m e n c e d . 	 T h e	
C o m p a n y 	 i s 	 o n 	 t ra c k 	 t o 	 c o m m e n c e 	 f u l l 	 P h a s e 	 I I I 	 s t u d i e s	
o n 	 v a c c i n e s 	 a g a i n s t 	 a l l e r g y 	 t o 	 t h e 	 m o s t 	 c o m m o n 	 p o l l e n s	
d u ri n g 	 t h e 	 2 0 0 6 	 p o l l e n 	 s e a s o n .	
A l l e r g y 	 T h e ra p e u t i c s 	 i s 	 a 	 f u l l y 	 i n t e g ra t e d 	 p h a r m a c e u t i c a l	
c o m p a n y . 	 T h i s 	 g i v e s 	 u s 	 g r e a t 	 s t r e n g t h 	 i n 	 f u r t h e r	
d e v e l o p i n g 	 t h e 	 b u s i n e s s 	 i n 	 t a n d e m 	 w i t h 	 t h e 	 n e w	
p r o d u c t s . 	 F u r t h e r m o r e , 	 P o l l i n e x
®
	 Q u a t t r o 	 – 	 o u r 	 m a i n	
d e v e l o p m e n t 	 p r o d u c t 	 – 	 i s 	 c u r r e n t l y 	 b e i n g 	 s o l d 	 o n 	 a	
‘ n a m e d 	 p a t i e n t 	 p r o d u c t ’ 	 ( NP P ) 	 b a s i s 	 i n 	 G e r m a n y , 	 I t a l y	
a n d 	 S p a i n , 	 w h e r e 	 s u c h 	 s a l e s 	 o f 	 p r e - r e g i s t ra t i o n 	 p r o d u c t s	
a r e 	 p e r m i t t e d . 	 W e 	 h a v e 	 s o l d 	 o v e r 	 1 1 5 , 0 0 0 	 u n i t s 	 o f 	 t h e	
p r o d u c t 	 t o 	 d a t e , 	 g i v i n g 	 u s 	 g r e a t 	 a n d 	 i n c r e a s i n g 	 c o n f i d e n c e	
i n 	 t h e 	 e f f i c a c y 	 a n d 	 s a f e t y 	 o f 	 t h e s e 	 v a c c i n e s .	
T h e 	 C o m p a n y 	 h a s 	 m a d e 	 g o o d 	 p r o g r e s s 	 i n 	 i t s	
c o m m e r c i a l i s a t i o n 	 a c t i v i t i e s . 	 G r o s s 	 s a l e s 	 a r e 	 £ 2 2 . 9 	 m i l l i o n ,	
u p 	 2 0 % 	 a g a i n s t 	 t h e 	 p r e v i o u s 	 y e a r , 	 d ri v e n 	 c h i e f l y 	 b y 	 a	
4 1 % 	 i n c r e a s e 	 i n 	 s a l e s 	 o f 	 P o l l i n e x
®
	 Q u a t t r o . 	 T h i s 	 i n c l u d e s	
o u r 	 f i r s t 	 o u t - l i c e n c e 	 a g r e e m e n t 	 f o r 	 P o l l i n e x
®
	 Q u a t t r o ,	
w i t h 	 A l l e r p h a r m a 	 f o r 	 t h e 	 Ca n a d i a n 	 m a r k e t . 	 £ 1 	 m i l l i o n	
o f 	 m i l e s t o n e 	 i n c o m e 	 w a s 	 b o o k e d 	 i n 	 t h e 	 y e a r , 	 w i t h 	 a	
f u r t h e r 	 £ 7 	 m i l l i o n 	 t o 	 b e 	 p a i d 	 o v e r 	 t h e 	 d e v e l o p m e n t 	 p e ri o d	
o f 	 t h e 	 v a c c i n e s , 	 s u b j e c t 	 t o 	 t h e 	 a c h i e v e m e n t 	 o f 	 c e r t a i n	
d e v e l o p m e n t 	 o b j e c t i v e s . 	 O p e ra t i n g 	 p r o f i t 	 i n c l u d i n g	
m i l e s t o n e 	 i n c o m e 	 b u t 	 b e f o r e 	 G e r m a n 	 s a l e s 	 r e b a t e ,	 	
R & D 	 a n d 	 e x c e p t i o n a l 	 i t e m s 	 h a s 	 n e a rl y 	 d o u b l e d 	 t o	 	
£ 6 . 1 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ 3 . 1 	 m i l l i o n ) .	
O n e 	 o f 	 t h e 	 a t t ra c t i o n s 	 o f 	 A l l e r g y 	 T h e ra p e u t i c s ’ 	 b u s i n e s s	
m o d e l 	 i s 	 t h a t 	 t h e 	 e x t e n s i v e 	 R & D 	 p r o g ra m m e 	 n o w 	 u n d e r	
w a y 	 i s 	 f u n d e d 	 i n 	 p a r t 	 b y 	 t h e 	 p r o f i t s 	 f r o m 	 o u r 	 c o m m e r c i a l	
o p e ra t i o n s . 	 C o n s e q u e n t l y , 	 d e s p i t e 	 R & D 	 i n v e s t m e n t 	 o f	
£ 5 . 6 	 m i l l i o n 	 c o m p a r e d 	 w i t h 	 £ 0 . 5 	 m i l l i o n 	 l a s t 	 y e a r , 	 t h e 	 l o s s	
a f t e r 	 t a x 	 a m o u n t e d 	 t o 	 £ 1 . 9 	 m i l l i o n 	 c o m p a r e d 	 t o 	 l a s t 	 y e a r ’ s	
p r o f i t 	 o f 	 £ 1 . 2 	 m i l l i o n . 	 W e 	 a n t i c i p a t e 	 a 	 f u r t h e r 	 s u b s t a n t i a l	
i n c r e a s e 	 i n 	 R & D 	 i n v e s t m e n t 	 t h i s 	 y e a r 	 a s 	 t h e 	 P h a s e 	 I I I	
p r o g ra m m e 	 p r o g r e s s e s 	 f o r 	 P o l l i n e x
®
	 Q u a t t r o 	 v a c c i n e s 	 f o r	
A l l e r g i c 	 R h i n i t i s 	 ( A R ) 	 t o 	 m a j o r 	 p o l l e n s , 	 a n d 	 t h e 	 s u b l i n g u a l	
p r o g ra m m e 	 g e t s 	 u n d e r 	 w a y .
A l l e r g y 	 T h e ra p e u t i c s 	 h a s 	 a 	 f i r s t - c l a s s 	 t e a m 	 o f 	 p e o p l e	
w h o s e 	 e f f o r t s 	 h a v e 	 p r o d u c e d 	 t h e s e 	 e x c e l l e n t 	 r e s u l t s 	 i n	
e v e r y 	 a r e a ; 	 I 	 t h a n k 	 e a c h 	 o n e 	 f o r 	 h i s 	 o r 	 h e r 	 e f f o r t s .	
I f , 	 a s 	 w e 	 a n t i c i p a t e , 	 o u r 	 d e v e l o p m e n t 	 a c t i v i t i e s 	 o v e r 	 t h e	
n e x t 	 f e w 	 y e a r s 	 a r e 	 s u c c e s s f u l , 	 w e 	 w i l l 	 b e 	 i n 	 t h e 	 p o s i t i o n 	 o f	
h a v i n g 	 t h e 	 f i r s t 	 e v e r 	 i n n o v a t i v e , 	 u l t ra - s h o r t - c o u r s e 	 a l l e r g y	
v a c c i n e s 	 r e g i s t e r e d 	 b o t h 	 i n 	 E u r o p e 	 a n d 	 w i t h 	 t h e 	 F o o d 	 a n d	
D r u g 	 A d m i n i s t ra t i o n 	 f o r 	 s a l e 	 i n 	 t h e 	 U S A . 	 T h i s 	 o u t c o m e	
w o u l d 	 b e 	 e x t r e m e l y 	 p o s i t i v e 	 f o r 	 t h e 	 C o m p a n y 	 a n d 	 w o u l d	
r e p r e s e n t 	 a 	 m a j o r 	 c h a n g e 	 t o 	 t h e 	 o p p o r t u n i t i e s 	 a n d	
c h a l l e n g e s 	 fa c i n g 	 u s . 	 I n 	 p r e p a ra t i o n , 	 d u ri n g 	 t h e 	 c o u r s e	
o f 	 t h e 	 y e a r 	 w e 	 h a v e 	 s t r e n g t h e n e d 	 o u r 	 t e a m 	 i n 	 s a l e s 	 a n d	
m a r k e t i n g , 	 R & D , 	 m a n u fa c t u ri n g 	 a n d 	 r e g u l a t o r y . 	 F u r t h e r	
i n v e s t m e n t 	 i n 	 t h e 	 t e a m 	 w i l l 	 b e 	 r e q u i r e d 	 o v e r 	 t h e 	 c o m i n g	
y e a r s 	 t o 	 m e e t 	 o u r 	 s t ra t e g i c 	 g o a l s 	 – 	 t o 	 d e v e l o p 	 w o rl d -
b e a t i n g 	 p r o d u c t s , 	 m a n u fa c t u r e 	 t h e m 	 f o r 	 a l l 	 m a r k e t s	
a n d 	 s e l l 	 t h e m 	 t h r o u g h 	 o u r 	 o w n 	 s a l e s 	 a n d 	 m a r k e t i n g	
i n f ra s t r u c t u r e 	 a c r o s s 	 t h e 	 E u r o p e a n 	 U n i o n , 	 w o r k i n g 	 w i t h	
p a r t n e r s 	 e l s e w h e r e .
W e 	 a r e 	 l o o k i n g 	 f o r w a r d 	 t o 	 a n o t h e r 	 y e a r 	 f u l l 	 o f	
a c c o m p l i s h m e n t s 	 i n 	 2 0 0 5 / 6 .	
I g n a c e 	 G o e t h a l s
Ch a i r m a n
1 2 	 S e p t e m b e r 	 2 0 0 5 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 0 3
01
A l l e r g y 	 i s 	 t h e 	 ‘ e p i d e m i c 	 o f 	 t h e 	 2 1 s t 	 C e n t u r y ’ . 	 A 	 l a r g e	
a n d 	 g r o w i n g 	 p r o p o r t i o n 	 o f 	 t h e 	 p o p u l a t i o n 	 i s 	 s u f f e ri n g	
i n 	 d i f f e r e n t 	 d e g r e e s 	 t o 	 a l l e r g y 	 t o 	 c o m m o n , 	 u n a v o i d a b l e	
s u b s t a n c e s 	 s u c h 	 a s 	 p o l l e n s , 	 m i t e s 	 a n d 	 t h e 	 d a n d e r 	 o f	
d o m e s t i c 	 p e t s . 	 I n 	 t h e 	 U S A , 	 5 4 % 	 o f 	 t h e 	 t o t a l 	 p o p u l a t i o n	
s h o w 	 p o s i t i v e 	 r e s p o n s e s 	 t o 	 s k i n 	 t e s t s 	 f o r 	 o n e 	 o r 	 m o r e 	 o f	
t h e 	 1 0 	 m o s t 	 p r e v a l e n t 	 a l l e r g e n s
1
	 ; 	 s u c h 	 s e n s i t i s a t i o n 	 i s	
a n 	 i n d i c a t i o n 	 o f 	 a l l e r g y 	 o r 	 t h e 	 p o t e n t i a l 	 t o 	 d e v e l o p 	 t h e	
s y m p t o m s 	 o f 	 a l l e r g y . 	 T h e 	 n u m b e r s 	 s u f f e ri n g 	 a r e 	 a l s o	
g r o w i n g 	 ra p i d l y ; 	 t h e 	 s a m e 	 U S 	 s u r v e y 	 c o n d u c t e d 	 1 2 	 y e a r s	
e a rl i e r 	 p u t 	 t h e 	 n u m b e r 	 o f 	 p o s i t i v e 	 s k i n 	 t e s t s 	 a t 	 j u s t 	 o v e r	
2 0 % 	 o f 	 t h e 	 p o p u l a t i o n . 	 T h e 	 s a m e 	 p a t t e r n s 	 a r e 	 s e e n 	 a c r o s s	
t h e 	 d e v e l o p e d 	 w o rl d .
A l l e r g y 	 c a n 	 b e 	 a 	 m i n o r 	 i r ri t a t i o n 	 o f 	 s h o r t 	 d u ra t i o n , 	 o r 	 i t	
c a n 	 s e ri o u s l y 	 i m p a i r 	 t h e 	 q u a l i t y 	 o f 	 l i f e 	 o f 	 t h e 	 s u f f e r e r 	 –	
r e n d e ri n g 	 w o r k , 	 e x a m s , 	 l e i s u r e 	 a n d 	 e v e n 	 s l e e p	
i m p o s s i b l e . 	 F u r t h e r m o r e , 	 A l l e r g i c 	 R h i n i t i s 	 ( A R ) 	 i s 	 n o w	
r e c o g n i s e d 	 t o 	 b e 	 a 	 p r e c u r s o r 	 o f 	 a s t h m a , 	 a 	 l i f e - t h r e a t e n i n g	
c o n d i t i o n , 	 i n 	 m a n y 	 p a t i e n t s
2
. 	 A l l e r g i c 	 p e o p l e 	 h a v e 	 3 	 t i m e s	
g r e a t e r 	 ri s k 	 o f 	 b e c o m i n g 	 a s t h m a t i c 	 t h a n 	 n o n - a l l e r g i c s
2
, 	 a	
p h e n o m e n o n 	 k n o w n 	 a s 	 t h e 	 ‘ A l l e r g i c 	 M a r c h ’ . 	 A l l e r g y 	 i s 	 a l s o	
v e r y 	 c o s t l y 	 – 	 $ 1 1 	 b i l l i o n 	 i s 	 s p e n t 	 a n n u a l l y 	 b y 	 p a t i e n t s 	 a n d	
h e a l t h 	 i n s u ra n c e 	 s y s t e m s 	 o n 	 s y m p t o m a t i c 	 t r e a t m e n t
3
,	
a n d 	 t h e 	 e c o n o m i c 	 c o s t s 	 t o 	 s o c i e t y 	 i n 	 t e r m s 	 o f 	 l o s t 	 d a y s	
o f 	 w o r k 	 a n d 	 h o s p i t a l i s a t i o n 	 d u e 	 t o 	 a s t h m a 	 a t t a c k s 	 a r e	
t h o u g h t 	 t o 	 b e 	 e v e n 	 g r e a t e r .	
T r a n s f o r m i n g 	 a l l e r g y 	 t r e a t m e n t
A s 	 r e c o g n i s e d 	 b y 	 t h e 	 W o rl d 	 H e a l t h 	 O r g a n i s a t i o n
4
,	
u n l i k e 	 a n y 	 o t h e r 	 a v a i l a b l e 	 t r e a t m e n t , 	 a l l e r g y 	 v a c c i n e s	
( a l s o 	 r e f e r r e d 	 t o 	 a s 	 s p e c i f i c 	 i m m u n o t h e ra p y 	 o r 	 ‘ a l l e r g y	
s h o t s ’ ) 	 a c t 	 a t 	 t h e 	 i m m u n o l o g i c a l 	 s o u r c e 	 o f 	 t h e 	 d i s e a s e ,	
h a v e 	 t h e 	 u n i q u e 	 p o t e n t i a l 	 t o 	 o f f e r 	 l o n g 	 t e r m 	 r e l i e f 	 t o	
s u c c e s s f u l l y 	 t r e a t e d 	 p a t i e n t s 	 a n d 	 a r r e s t 	 t h e 	 A l l e r g i c 	 M a r c h .	
A l l e r g y 	 T h e ra p e u t i c s 	 p l c 	 ( ‘ A T p ’ ) 	 i s 	 a t 	 t h e 	 l e a d i n g 	 e d g e 	 i n	
d e v e l o p i n g 	 n e w 	 v a c c i n e s 	 t o 	 t r e a t 	 A R . 	 C u r r e n t l y , 	 a l l e r g y	
v a c c i n e s 	 r e p r e s e n t 	 a 	 s m a l l 	 n i c h e 	 a r e a : 	 l e s s 	 t h a n 	 3 %	
o f 	 a l l e r g i c 	 p a t i e n t s 	 a r e 	 o f f e r e d 	 v a c c i n e s . 	 T h i s 	 i s 	 m a i n l y	
b e c a u s e 	 t h e 	 e x i s t i n g 	 p r o d u c t s 	 r e q u i r e 	 m a n y 	 i n j e c t i o n s	
o v e r 	 a 	 l o n g 	 p e ri o d 	 – 	 i n 	 t h e 	 U S A 	 u p 	 t o 	 2 0 0 	 s h o t s 	 o v e r	
5 	 y e a r s 	 i s 	 n o t 	 u n u s u a l 	 – 	 a n d 	 c a r r y 	 g r e a t e r 	 ri s k s 	 o f 	 s i d e	
e f f e c t s 	 t h a n 	 m a n y 	 p h y s i c i a n s 	 a n d 	 p a t i e n t s 	 a r e 	 w i l l i n g	 	
t o 	 t o l e ra t e .	
A l l e r g y 	 T h e ra p e u t i c s ’ 	 p i p e l i n e 	 o f 	 M P L
®
- b a s e d 	 p r o d u c t s	
i s 	 d e s i g n e d 	 t o 	 o v e r c o m e 	 t h e s e 	 s h o r t c o m i n g s , 	 a l l o w i n g	
a l l e r g y 	 v a c c i n a t i o n 	 t o 	 b e c o m e 	 a 	 m a i n s t r e a m 	 t r e a t m e n t	
ra t h e r 	 t h a n 	 a 	 l a s t 	 r e s o r t . 	 W i t h 	 o u r 	 u l t ra - s h o r t - c o u r s e ,	
e f f i c a c i o u s 	 a n d 	 w e l l - t o l e ra t e d 	 v a c c i n e s 	 o u r 	 m i s s i o n 	 i s	 	
t o 	 t ra n s f o r m 	 a l l e r g y 	 t r e a t m e n t .	
R e g i s t r a t i o n
I n 	 m a i n s t r e a m 	 p h a r m a c e u t i c a l s 	 t h e 	 p r o d u c t s 	 p r e s c r i b e d	
b y 	 p h y s i c i a n s 	 a c r o s s 	 t h e 	 w o r l d 	 m u s t 	 h a v e 	 m a r k e t i n g	
a u t h o r i s a t i o n s , 	 g r a n t e d 	 b y 	 n a t i o n a l 	 r e g u l a t o r y	
a u t h o r i t i e s 	 su c h 	 a s 	 t h e 	 F D A . 	 T h e 	 g r a n t i n g 	 o f 	 su c h	
a u t h o r i s a t i o n s 	 i s 	 c o m m o n l y 	 r e f e r r e d 	 t o 	 a s 	 ‘ r e g i s t r a t i o n ’	
a n d 	 r e q u i r e s 	 r ig o r o u s 	 p r o o f 	 o f 	 p r o d u c t 	 q u a l i t y , 	 s a f e t y	
a n d 	 e f f i c a c y 	 t h r o u g h 	 c l i n i c a l 	 t r i a l s 	 c u l m i n a t i n g 	 i n 	 pi v o t a l	
‘P h a s e 	 I I I ’ 	 s t u d i e s .	
A l l e r g y 	 v a c c i n e s 	 h a v e 	 t ra d i t i o n a l l y 	 b e e n 	 m a d e 	 t o 	 o r d e r 	 f o r	
i n d i v i d u a l 	 p r e s c ri p t i o n 	 a c c o r d i n g 	 t o 	 w h i c h 	 a l l e r g e n s 	 c a u s e	
t h e 	 p a t i e n t ’ s 	 s y m p t o m s . 	 T h i s 	 h a s 	 m e a n t 	 t h a t , 	 i n 	 g e n e ra l ,	
a l l e r g y 	 v a c c i n e s 	 fa l l 	 o u t s i d e 	 t h e 	 n o r m a l 	 r e g i s t ra t i o n	
s y s t e m 	 a n d 	 a r e 	 s o l d 	 a s 	 ‘ n a m e d 	 p a t i e n t 	 p r o d u c t s ’ 	 –	
a n o t h e r 	 r e a s o n 	 w h y 	 t h i s 	 t r e a t m e n t 	 h a s 	 b e e n 	 r e l e g a t e d	 	
t o 	 a 	 n i c h e .	
A s 	 p a r t 	 o f 	 A l l e r g y 	 T h e ra p e u t i c s ’ 	 a i m 	 o f 	 t ra n s f o r m i n g	
a l l e r g y 	 t r e a t m e n t 	 b y 	 m o d e r n i s i n g 	 a l l e r g y 	 v a c c i n a t i o n ,	 	
w e 	 h a v e 	 e m b a r k e d 	 o n 	 a 	 p r o g ra m m e 	 o f 	 c l i n i c a l 	 t ri a l s	
w i t h 	 t h e 	 o b j e c t i v e 	 o f 	 g a i n i n g 	 r e g i s t ra t i o n 	 i n 	 a l l 	 t h e 	 m a j o r	
m a r k e t s 	 w o rl d w i d e 	 f o r 	 s t a n d a r d i s e d 	 p r o d u c t s 	 s u i t a b l e	
f o r 	 a 	 b r o a d 	 ra n g e 	 o f 	 p a t i e n t s . 	 A s 	 fa r 	 a s 	 w e 	 a r e 	 a w a r e ,	
n o 	 o t h e r 	 a l l e r g y 	 v a c c i n e s 	 a r e 	 b e i n g 	 d e v e l o p e d 	 o n 	 t h i s	
w o rl d w i d e 	 b a s i s 	 w h i c h 	 r e q u i r e s 	 t h e 	 h i g h e s t 	 s t a n d a r d 	 o f	
e v i d e n c e 	 o f 	 e f f i c a c y 	 a n d 	 s a f e t y . 	 T h e 	 m o n e y 	 ra i s e d 	 a t 	 t h e	
I P O 	 w a s 	 r e q u i r e d 	 t o 	 f u n d 	 t h i s 	 p r o g ra m m e 	 o f 	 s t u d i e s .	
A l l e r g y 	 T h e r a p e u t i c s ’ 	 s t r a t e g y
A l l e r g y 	 T h e r a p e u t i c s 	 h a s 	 c o n t i n u e d 	 t o 	 p u r su e 	 i t s	 	
s t r a t e g y 	 a s 	 a n 	 i n t e g r a t e d , 	 E u r o p e - b a s e d , 	 sp e c i a l t y	
p h a r m a c e u t i c a l 	 c o m p a n y 	 a n d 	 o v e r 	 t h e 	 l a s t 	 1 2 	 m o n t h s	
h a s 	 m a d e 	 m a j o r 	 s t e p s 	 f o r w a r d . 	 T h e 	 C o m p a n y 	 i s 	 b u i l d i n g	
i t s 	 E U 	 s a l e s 	 a n d 	 m a r k e t i n g 	 i n f r a s t r u c t u r e 	 a n d 	 h a s 	 m a d e	
s ig ni f i c a n t 	 p r o g r e s s 	 i n 	 i t s 	 d e v e l o p m e n t 	 pi p e l i n e 	 o f	
i n n o v a t i v e , 	 u l t r a - sh o r t - c o u r s e 	 a l l e r g y 	 v a c c i n e s 	 b a s e d 	 o n	
M P L
®
, 	 a 	 T L R 4 	 a g o n i s t 	 w h i c h 	 a c t s 	 a s 	 a 	 v a c c i n e 	 a d j u v a n t .	
T h e 	 g u id i n g 	 p r i n c i p l e 	 o f 	 t h e 	 d e v e l o p m e n t 	 pi p e l i n e 	 i s 	 t o	
c r e a t e 	 e f f i c a c i o u s 	 a n d 	 s a f e 	 a l l e r g y 	 v a c c i n e s 	 w i t h 	 i m p r o v e d	
p r o d u c t 	 c h a r a c t e r i s t i c s 	 f o r 	 p a t i e n t 	 a n d 	 p a y e r s , 	 a s 	 t h e y	
c a n 	 b e 	 a d m i ni s t e r e d 	 o v e r 	 a 	 sh o r t 	 p e r i o d 	 o f 	 t i m e ,	 	
w i t h 	 f e w 	 i n j e c t i o n s 	 o r 	 p o s s i b l y 	 i n j e c t i o n - f r e e , 	 a s	 	
a 	 su b l i n g u a l 	 t r e a t m e n t .
Chief  
Executive’s 
Review
1	 	 J o u r n a l	o f	A l l e r g y	a n d	C l i n	I m m u n o l . ,	A u g u s t	2 0 0 5 :	‘ P r e v a l e n c e s	o f	p o s i t i v e	s k i n	t e s t	r e s p o n s e s	t o	1 0	c o m m o n	a l l e r g e n s	i n	t h e	U S	p o p u l a t i o n : 	
R e s u l t s	f r o m	t h e	3 rd	N a t i o n a l	H e a l t h	a n d	N u t r i t i o n	E x a m i n a t i o n	S u r v e y ’ .
2 	 	 ‘ B o u s q u e t 	 J , 	 v a n 	 C a u w e n b e r g e 	 P , 	 K h a l t a e v 	 N . 	 A l l e r g i c 	 r h i n i t i s 	 a n d 	 i t s 	 i m p a c t 	 o n 	 a s t h m a . 	 ( ‘ A R I A ’ ) 	 J o u r n a l 	 o f 	 A l l e r g y 	 a n d 	 C l i n i c a l 	 I m m u n o l o g y 	 – 	 20 0 1 .	
3	 D a t a m o n i t o r :	P i p e l i n e	I n s i g h t :	A s t h m a ,	C O P D	a n d	A l l e r g i c	R h i n i t i s ,	A p r i l	2 0 0 5 .
4	 W H O	P o s i t i o n	P a p e r	1 9 97 .	A l l e r g e n	I m m u n o t h e r a p y :	t h e r a p e u t i c	v a c c i n e s	f o r	a l l e r g i c	d i s e a s e s .	
60 %
P r o b a b i l i t y	 o f	 c h i l d	 s u f f e r i n g	 	
f r o m	 r h i n i t i s	 i f	 b o t h	 p a r e n t s	
a r e	 s u f f e r e r s .
1 BN
N u m b e r 	 o f 	 p o ll e n 	 g r a i n s 	 a	
s i n g l e 	 r a g w e e d 	 p la n t 	 p r o d u c e s	
i n 	 a n 	 a v e r a g e 	 s e a s o n . 	 E a c h	
g r a i n 	 c a n 	 t r a v e l 	 u p 	 t o 	 4 0 0 	 m i l e s .
26.2 %
T h e 	 t ot a l 	 U S 	 p o p u l a t i o n	
s h o w i n g 	 p o s i t i v e 	 s k i n 	 t e s t	
r e s p o n s e s 	 t o 	 r a g we e d 	 p o l l e n . 0 4 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	
Job:	 [6536/Allergy	Therapeutics	Annual	Report	Front]	 Proof:	 [03]
Operator:	[Kathleen]	 Date:	 [20/09/05]
Server:	 [studio	II]
P r o g r e ss
A l l e r g y 	 T h e ra p e u t i c s 	 p e r f o r m e d 	 w e l l 	 i n 	 t h e 	 1 2 	 m o n t h s	
e n d e d 	 J u n e 	 2 0 0 5 , 	 b o t h 	 i n 	 d e l i v e ri n g 	 s t r o n g 	 f i n a n c i a l	
r e s u l t s 	 a n d 	 t a k i n g 	 s t ra t e g i c 	 a c t i o n s 	 t h a t 	 w i l l 	 u n d e r p i n 	 t h e	
d e l i v e r y 	 o f 	 l o n g - t e r m 	 f u t u r e 	 p e r f o r m a n c e 	 o f 	 t h e 	 G r o u p .	
I n 	 p a r t i c u l a r , 	 t h e 	 m o v e 	 i n t o 	 l i f e 	 a s 	 a 	 p u b l i c l y 	 l i s t e d	
c o m p a n y 	 i n 	 O c t o b e r 	 2 00 4 	 h a s 	 b e e n 	 a 	 m a j o r 	 h i g h l i g h t .	
Th e 	 r a i s i n g 	 o f 	 £ 1 5 	 m i l l i o n , 	 n e t 	 o f 	 e x p e n s e s , 	 w a s 	 t h e 	 m o s t	
a d v a n t a g e o u s 	 m e a n s 	 o f 	 s e c u r i n g 	 f u n d s 	 t o 	 a c c e l e r a t e 	 t h e	
c l i n i c a l 	 d e v e l o p m e n t 	 o f 	 P o l l i n e x
®
	 Q u a t t r o . 	 Th e 	 C o m p a n y	
h a s 	 s i n c e 	 m a d e 	 p r o g r e s s 	 w i t h 	 e s t a b l i s h i n g 	 t h e 	 ‘ p a t h	
t o 	 r e g i s t r a t i o n ’ 	 f o r 	 t h e 	 f a m i l y 	 o f 	 v a c c i n e s 	 a n d 	 b u i l d i n g	
r e l a t i o n s h i p s 	 w i t h 	 v a r i o u s 	 r e g u l a t o r y 	 b o d i e s . 	 S u b j e c t	 	
t o 	 f u r t h e r 	 r e g u l a t o r y 	 a p p r o v a l , 	 t h e 	 C o m p a n y 	 i s 	 o n	 	
t r a c k 	 t o 	 c o m m e n c e 	 f u l l 	 P h a s e 	 I I I 	 s t u d i e s 	 o n 	 v a c c i n e s	
a g a i n s t 	 a l l e r g y 	 t o 	 c e r t a i n 	 c o m m o n 	 p o l l e n s 	 d u r i n g	 	
t h e 	 2 00 6 	 p o l l e n 	 s e a s o n .	
T h e 	 f i n a n c i a l 	 p e r f o r m a n c e 	 o f 	 t h e 	 b u s i n e s s 	 r e f l e c t s	
s i g n i f i c a n t 	 a d v a n c e s 	 m a d e 	 i n 	 t h e 	 y e a r 	 t h r o u g h o u t	 	
t h e 	 C o m p a n y . 	 T h e 	 C o m p a n y 	 h a s 	 b e n e f i t e d 	 f r o m 	 g o o d	
p r o g r e s s 	 i n 	 i t s 	 c o m m e r c i a l i s a t i o n 	 a c t i v i t i e s 	 – 	 f o r 	 t h e	 	
y e a r 	 e n d e d 	 3 0 	 J u n e 	 2 0 0 5 	 g r o s s 	 s a l e s , 	 b e f o r e 	 m i l e s t o n e	
i n c o m e , 	 o f 	 £ 2 1 . 9 	 m i l l i o n 	 w e r e 	 g e n e ra t e d , 	 u p 	 1 5 %	
a g a i n s t 	 t h e 	 p r e v i o u s 	 y e a r , 	 d ri v e n 	 c h i e f l y 	 b y 	 a 	 4 1 %	
i n c r e a s e 	 i n 	 s a l e s 	 o f 	 P o l l i n e x
®
	 Q u a t t r o . 	 O p e ra t i n g 	 p r o f i t ,	
i n c l u d i n g 	 m i l e s t o n e 	 i n c o m e 	 b u t 	 b e f o r e 	 G e r m a n 	 s a l e s	
r e b a t e , 	 R & D 	 a n d 	 e x c e p t i o n a l 	 i t e m s , 	 a 	 k e y 	 m e a s u r e 	 o f	
p e r f o r m a n c e 	 o f 	 t h e 	 c o r e 	 b u s i n e s s , 	 h a s 	 n e a rl y 	 d o u b l e d	 	
t o 	 £ 6 . 1 	 m i l l i o n 	 f o r 	 t h e 	 f i n a n c i a l 	 y e a r 	 ( 2 0 0 4 : 	 £ 3 . 1 	 m i l l i o n ) .
W e 	 h a v e 	 a l s o 	 s ig n e d 	 o u r 	 f i r s t 	 o u t - l i c e n c e 	 a g r e e m e n t	
f o r 	 P o l l i n e x
®
	 Q u a t t r o , 	 w i t h 	 C a n a d i a n 	 p h a r m a c e u t i c a l s	
c o m p a n y 	 A l l e r p h a r m a , 	 t o 	 w h o m 	 A l l e r g y 	 T h e r a p e u t i c s	
g r a n t e d 	 e x c l u s i v e 	 r ig h t s 	 f o r 	 t h e 	 C a n a d i a n 	 m a r k e t .	
£ 1 	 m i l l i o n 	 o f 	 m i l e s t o n e 	 i n c o m e 	 w a s 	 e a r n e d 	 i n 	 t h e	
y e a r , 	 w i t h 	 a 	 f u r t h e r 	 £ 7 	 m i l l i o n 	 t o 	 b e 	 p a id 	 o v e r 	 t h e	
d e v e l o p m e n t 	 p e r i o d 	 o f 	 t h e 	 v a c c i n e s , 	 su b j e c t 	 t o 	 t h e	
a c h i e v e m e n t 	 o f 	 c e r t a i n 	 d e v e l o p m e n t 	 o b j e c t i v e s .	
Po l l i n e x
®
	 Q u a t t r o
D e s c ri p t i o n : 	 	 	 U l t ra - s h o r t - c o u r s e 	 v a c c i n e s 	 f o r 	 a l l e r g y 	 t o	
m a j o r 	 p o l l e n s .
Do s i n g : 	 	 	 4 	 s u b c u t a n e o u s 	 i n j e c t i o n s 	 a d m i n i s t e r e d	
p r e - s e a s o n a l l y 	 b y 	 s p e c i a l i s t 	 f o r 	 s a m e	
s e a s o n 	 e f f i c a c y .	
C o m p o s i t i o n : 	 	 M P L
®
	 ( TL R 4 	 a g o n i s t 	 a d j u v a n t ) 	 c o m b i n e d	
w i t h 	 a l l e r g o i d s 	 ( c h e m i c a l l y 	 m o d i f i e d	
a l l e r g e n s ) 	 w i t h 	 L - 	 t y r o s i n e 	 a s 	 d e p o t 	 c a r ri e r .
P o l l i n e x
®
	 Q u a t t r o , 	 w h i c h 	 o n 	 a 	 NP P 	 b a s i s 	 i s 	 b o t h 	 a	
m a r k e t e d 	 p r o d u c t 	 i n 	 c e r t a i n 	 t e r ri t o ri e s 	 a n d 	 o u r 	 f l a g s h i p	
d e v e l o p m e n t 	 p r o d u c t , 	 h a s 	 g e n e ra t e d 	 s a l e s 	 o f	 	
£ 7 . 2 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ 5 . 1 	 m i l l i o n ) . 	 W e 	 h a v e 	 a c h i e v e d	 	
t h i s 	 g r o w t h 	 t h r o u g h 	 a 	 t a r g e t e d 	 a p p r o a c h 	 t o 	 m a r k e t i n g	 	
i n 	 k e y 	 a r e a s . 	 I n 	 G e r m a n y , 	 w i n n i n g 	 t h e 	 p r e s t i g i o u s	 	
M M W 	 A w a r d 	 f o r 	 p h a r m a c e u t i c a l 	 i n n o v a t i o n 	 h a s 	 h a d	 	
a 	 n o t i c e a b l y 	 p o s i t i v e 	 e f f e c t 	 o n 	 s a l e s .
T h e 	 C o m p a n y 	 r e c e i v e d 	 a 	 f u r t h e r 	 b o o s t 	 r e g a r d i n g 	 t h e	
N o r t h 	 A m e ri c a n 	 m a r k e t 	 i n 	 J u n e 	 w h e n 	 i t 	 r e c e i v e d	
c l e a ra n c e 	 f r o m 	 H e a l t h 	 Ca n a d a 	 t o 	 c o m m e n c e 	 p i v o t a l	
s t u d i e s 	 o n 	 P o l l i n e x
®
	 Q u a t t r o 	 R a g w e e d , 	 a 	 v a c c i n e 	 f o r	
s e a s o n a l 	 r h i n i t i s 	 c a u s e d 	 b y 	 R a g w e e d 	 p o l l e n , 	 t h e 	 m a j o r	
a l l e r g e n 	 i n 	 N o r t h 	 A m e ri c a . 	 I f 	 s u c c e s s f u l , 	 t h e 	 s t u d y 	 w i l l	
a l l o w 	 s u b m i s s i o n 	 f o r 	 r e g i s t ra t i o n 	 i n 	 H 1 	 2 0 0 6 , 	 o f f e ri n g	
t h e 	 p o s s i b i l i t y 	 o f 	 a 	 f i r s t 	 m a r k e t i n g 	 a u t h o ri s a t i o n 	 f o r 	 a	
P o l l i n e x
®
	 Q u a t t r o 	 p r o d u c t 	 i n 	 t i m e 	 f o r 	 t h e 	 2 0 0 7 	 s e a s o n .	
S h o u l d 	 s u c h 	 a 	 r e g i s t ra t i o n 	 b e 	 a c h i e v e d , 	 A l l e r g y	
T h e ra p e u t i c s 	 i n t e n d s 	 t o 	 c o n d u c t 	 p o s t - m a r k e t i n g 	 s t u d i e s	
t o 	 c o l l e c t 	 f u r t h e r 	 s a f e t y 	 a n d 	 e f f i c a c y 	 d a t a 	 w h i c h 	 w i l l	 	
b e 	 s u p p o r t i v e 	 t o 	 t h e 	 r e g i s t ra t i o n 	 a p p l i c a t i o n s 	 t o 	 b e	
m a d e 	 i n 	 o t h e r 	 t e r ri t o ri e s , 	 i n 	 p a r t i c u l a r 	 t h e 	 U S A .	
S u b j e c t 	 t o 	 r e g u l a t o r y 	 a p p r o v a l , 	 A l l e r g y 	 T h e ra p e u t i c s	
i s 	 o n 	 t ra c k 	 t o 	 c o m m e n c e 	 t h e 	 p i v o t a l 	 P h a s e 	 I I I 	 c l i n i c a l	
t ri a l s 	 p r o g ra m m e 	 d u ri n g 	 t h e 	 2 0 0 6 	 p o l l e n 	 s e a s o n . 	 T h e s e	
s t u d i e s 	 w i l l 	 b e 	 m u l t i - c e n t r e , 	 m u l t i - n a t i o n a l , 	 c o n d u c t e d 	 i n	
b o t h 	 N o r t h 	 A m e ri c a 	 a n d 	 E u r o p e 	 – 	 A l l e r g y 	 T h e ra p e u t i c s 	 i s	
t h e 	 o n l y 	 a l l e r g y 	 v a c c i n e 	 c o m p a n y 	 k n o w n 	 t o 	 h a v e 	 s u c h 	 a	
p r o g ra m m e 	 o f 	 w o rl d w i d e 	 s t u d i e s , 	 i n c l u d i n g 	 i n 	 t h e 	 U S A .
O r a l v a c
®
	 P l u s
D e s c ri p t i o n : 	 	 S u b l i n g u a l 	 v a c c i n e s 	 f o r 	 a l l e r g y 	 t o 	 m a j o r	
p o l l e n s , 	 h o u s e 	 d u s t 	 m i t e 	 a n d 	 c a t .
Do s i n g : 	 	 	 D a i l y 	 d r o p s 	 o f 	 l i q u i d 	 u n d e r 	 t h e 	 t o n g u e	
c o n t i n u e d 	 f o r 	 1 – 5 	 y e a r s 	 s u b j e c t 	 t o	
p h y s i c i a n 	 a d v i c e .
C o m p o s i t i o n : 	 	 S t a n d a r d i s e d 	 s t e ri l e 	 a q u e o u s 	 a l l e r g e n	
e x t ra c t s , 	 R a s p b e r r y 	 f l a v o u r .	
S a l e s 	 o f 	 O ra l v a c
®
	 h a v e 	 i n c r e a s e d 	 t o 	 £ 3 . 9 	 m i l l i o n 	 ( 2 0 0 4 :	
£ 2 . 9 	 m i l l i o n ) .	
S u b l i n g u a l 	 a l l e r g y 	 v a c c i n e s 	 h a v e 	 t h e 	 a d v a n t a g e 	 o f 	 e a s y	
a d m i n i s t ra t i o n ; 	 f o l l o w i n g 	 d i a g n o s i s 	 a n d 	 p r e s c ri p t i o n 	 b y	
t h e 	 s p e c i a l i s t , 	 t h e 	 p a t i e n t s 	 s e l f - a d m i n i s t e r 	 a t 	 h o m e . 	 T h i s	
a l s o 	 m a k e s 	 t h e s e 	 p r o d u c t s 	 p r e f e ra b l e 	 f o r 	 p a e d i a t ri c 	 u s e .	
S u b l i n g u a l 	 v a c c i n e s , 	 h o w e v e r , 	 a r e 	 g e n e ra l l y 	 c o n s i d e r e d	
t o 	 b e 	 l e s s 	 e f f i c a c i o u s 	 t h a n 	 i n j e c t e d 	 a l l e r g y 	 v a c c i n e s ,	
“ If you can develop an efficacious allergy vaccine 
with only 4 shots, it will be very attractive to the 
American market.”  
US 	 O pi ni o n 	 L e a d e r
Chief  
Executive’s 
Review continued 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 0 5
A l l e rg y	 T h e r a p e u t i c s	 m a n u f a c t u r e s	 i t s	 	
o w n	 v a c c i n e s	 i n	 i t s	 G M P	 f a c i l i t i e s	 i n	 t h e	 U K .	 	
M u c h	 o f	 t h e	 d e v e l o p m e n t	 p h a r m a c e u t i c s	 	
a r e	 a l s o	 c a r r i e d	 o u t	 h e r e .
We firmly believe we have a solid 
foundation from which to build a  
sustainable, high value business. 
Our Strengths
Our products
O u r 	 e f f o r t s 	 t o 	 b r i n g 	 m o d e r n 	 v a c c i n e 	 t e c h n o l o g y	
t o 	 t h e 	 f i e l d 	 o f 	 i m m u n o t h e r a p y 	 w o r l d w i d e 	 a r e	
u n i q u e 	 t o 	 t h e 	 m a r k e t .	
T h e s e 	 e f f o r t s 	 a r e 	 a l s o 	 b u i l t 	 u p o n 	 a 	 s o l i d 	 f o u n d a t i o n	 	
o f 	 e x i s t i n g 	 a l l e r g y 	 v a c c i n e s 	 w h i c h 	 h a v e 	 b e e n	 	
m a r k e t e d , 	 d e v e l o p e d 	 a n d 	 i m p r o v e d 	 u p o n 	 s t e a d i l y	 	
s i n c e 	 t h e 	 f o u n d a t i o n 	 o f 	 t h e 	 b u s i n e s s 	 o v e r 	 6 0 	 y e a r s	 	
a g o . 	 P o l l i n e x
®
	 Q u a t t r o , 	 a t 	 t h e 	 l e a d i n g 	 e d g e 	 o f	
t e c h n o l o g y , 	 c o n t a i n i n g 	 t h e 	 TL R 4 	 a g o n i s t 	 v a c c i n e	
a d j u v a n t 	 M P L
®
, 	 l e a d s 	 a 	 p o r t f o l i o 	 o f 	 a l l e r g y 	 v a c c i n e s ,	 	
b o t h 	 i n j e c t e d 	 a n d 	 s u b l i n g u a l .
W e 	 a r e 	 a 	 f u l l y 	 i n t e g r a t e d , 	 s p e c i a l t y	
p h a r m a c e u t i c a l s 	 c o m p a n y . 	 W e 	 h a v e 	 a l l 	 t h e	 	
k e y 	 e l e m e n t s 	 i n 	 p l a c e : 	 G M P 	 m a n u f a c t u r i n g ,	
p r o d u c t 	 d e v e l o p m e n t , 	 s a l e s 	 a n d 	 m a r k e t i n g .	 	
W e 	 h a v e 	 t h e 	 p e o p l e , 	 t h e 	 p h y s i c a l 	 a s s e t s 	 a n d	
t h e 	 i n t e l l e c t u a l 	 p r o p e r t y 	 a s s o c i a t e d 	 w i t h 	 t h i s	
f u l l y 	 i n t e g r a t e d 	 b u s i n e s s 	 m o d e l 	 – 	 a 	 p r o v e n	
b u s i n e s s 	 i n f r a s t r u c t u r e , 	 w h i c h 	 c a n 	 b e 	 l e v e r a g e d .
Pe o p l e
O u r 	 g r e a t e s t 	 s t r e n g t h . 	 A l l e r g y 	 T h e r a p e u t i c s 	 h a s	
a p p r o x i m a t e l y 	 2 5 0 	 e m p l o y e e s 	 o n 	 a 	 F T E 	 b a s i s 	 r a n g i n g	
f r o m 	 s a l e s 	 r e p s 	 t o 	 P h D 	 i m m u n o l o g i s t s , 	 p r i m a r y	
p r o d u c t i o n 	 o p e r a t i v e s 	 t o 	 p r o d u c t 	 m a n a g e r s . 	 O u r 	 t e a m	
h a s 	 e x t e n s i v e 	 e x p e r t i s e 	 a c r o s s 	 a l l 	 f u n c t i o n s 	 f r o m	
m a n u f a c t u r i n g 	 t o 	 r e g u l a t o r y , 	 a d m i ni s t r a t i o n 	 t o 	 s a l e s ,	
c l i n i c a l 	 t r i a l s 	 m a n a g e m e n t 	 t o 	 m e d i c a l 	 m a r k e t i n g .
M a n u f a c t u r i n g
T h e 	 a d v a n t a g e s 	 o f 	 h a v i n g 	 o u r 	 o w n 	 m a n u f a c t u r i n g	
c a p a c i t y 	 a r e 	 t h r e e f o l d . 	 W e 	 m a x i m i s e 	 t h e 	 m a r g i n s 	 t o	
o u r 	 b u s i n e s s 	 o n 	 t h e 	 p r o d u c t 	 w e 	 s e l l ; 	 w e 	 a r e 	 i n 	 f u l l	
c o n t r o l 	 o f 	 su p p l y 	 t o 	 o u r 	 m a r k e t s ; 	 w e 	 c a n 	 m a n u f a c t u r e	
o u r 	 o w n 	 c l i n i c a l 	 t r i a l s 	 m a t e r i a l s , 	 w h i c h 	 g i v e s 	 u s 	 c o n t r o l	
a n d 	 f l e x i bi l i t y .	
S a l e s 	 a n d 	 m a r k e t i n g
A l l e r g y 	 T h e r a p e u t i c s 	 h a s 	 a 	 d i r e c t 	 s a l e s f o r c e 	 p r e s e n c e	
i n 	 G e r m a n y , 	 I t a l y , 	 S p a i n , 	 t h e 	 U K , 	 P o l a n d 	 a n d 	 A u s t r i a .	
W e 	 a r e 	 w i n n i n g 	 m a r k e t 	 sh a r e 	 i n 	 o u r 	 m a i n 	 m a r k e t s . 	 W e	
a r e 	 a c t i v e l y 	 e x p l o r i n g 	 w a y s 	 o f 	 i n c r e a s i n g 	 o u r 	 E U 	 s a l e s	
a n d 	 m a r k e t i n g 	 ‘ f o o t p r i n t ’ 	 a s 	 s a l e s 	 i n c r e a s e 	 a n d 	 i n	
p r e p a r a t i o n 	 f o r 	 t h e 	 su c c e s s f u l 	 d e v e l o p m e n t 	 o f	
r e g i s t e r e d 	 u l t r a - sh o r t - c o u r s e 	 a l l e r g y 	 v a c c i n e s .
Our business model 0 6 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	
Job:	 [6536/Allergy	Therapeutics	Annual	Report	Front]	 Proof:	 [03]
Operator:	[Kathleen]	 Date:	 [20/09/05]
Server:	 [studio	II]
a n d 	 r e q u i r e 	 u n s u p e r v i s e d 	 l o n g - t e r m 	 r e p e a t 	 a d m i n i s t r a t i o n	
s o 	 p a t i e n t 	 c o m p l i a n c e 	 i s 	 q u e s t i o n a b l e . 	 B y 	 i n c l u d i n g	
M P L
®
	 i n 	 a 	 s u b l i n g u a l 	 f o r m u l a t i o n , 	 A l l e r g y 	 T h e ra p e u t i c s	
i s 	 p l a n n i n g 	 t o 	 d e v e l o p 	 n e w 	 p r o d u c t s 	 t o 	 a d d r e s s 	 t h e s e	
i s s u e s ; 	 f i r s t - i n - m a n 	 P h a s e 	 I / I I 	 s t u d i e s 	 a r e 	 p l a n n e d 	 t o	
s t a r t 	 i n 	 t h e 	 f i n a n c i a l 	 y e a r 	 2 0 0 5 / 6 .	
O t h e r 	 p r o d u c t s
F o r 	 p a t i e n t s 	 w i t h 	 a l l e r g y 	 t o 	 l e s s 	 c o m m o n 	 a l l e r g e n s 	 a n d	
f o r 	 m a r k e t s 	 w h e r e 	 s h o r t - c o u r s e 	 i n j e c t e d 	 a n d 	 s u b l i n g u a l	
v a c c i n e s 	 a r e 	 n o t 	 y e t 	 a c c e p t e d , 	 A l l e r g y 	 T h e ra p e u t i c s 	 h a s	
t h e 	 T y r o s i n e 	 T U 	 t . o . p . 	 a n d 	 V e n o m i l 	 p r o d u c t s . 	 F o r 	 m a r k e t s	
w h e r e 	 t h e 	 NP P 	 r o u t e 	 i s 	 n o t 	 p o s s i b l e , 	 w e 	 o f f e r 	 t h e	
r e g i s t e r e d 	 P o l l i n e x
®
	 G ra s s , 	 T r e e 	 a n d 	 R a g w e e d 	 p r o d u c t s .	
C o m b i n e d 	 s a l e s 	 o f 	 t h e s e 	 v a c c i n e s 	 a m o u n t e d 	 t o	 	
£ 7 . 9 	 m i l l i o n 	 i n 	 t h e 	 y e a r 	 ( 2 0 0 4 : 	 £ 8 . 5 	 m i l l i o n 	 ) .	
K e y 	 m a r k e t s
F o r 	 GM P - m a n u f a c t u r e d 	 a l l e r g y 	 v a c c i n e s , 	 G e r m a n y ,	
I t a l y , 	 S p a i n 	 a n d 	 F r a n c e 	 a r e 	 t h e 	 big g e s t 	 m a r k e t s 	 i n	
t h e 	 w o r l d . 	 G e r m a n y 	 i s 	 t h e 	 l a r g e s t 	 m a r k e t 	 a n d 	 i t	
r e m a i n s 	 A l l e r g y 	 T h e r a p e u t i c s’ 	 m o s t 	 i m p o r t a n t 	 s o u r c e	
o f 	 r e v e n u e , 	 a c c o u n t i n g 	 f o r 	 n e a r l y 	 6 9 % 	 o f 	 s a l e s . 	 I t a l y	
a n d 	 S p a i n 	 a r e 	 o f 	 g r o w i n g 	 i m p o r t a n c e 	 t o 	 u s 	 a n d 	 w e	
c o n t i n u e 	 t o 	 i n v e s t 	 i n 	 t h e s e 	 b u s i n e s s e s , 	 w h i c h 	 r e p r e s e n t	
1 0% 	 a n d 	 7 % 	 o f 	 s a l e s 	 r e sp e c t i v e l y .	
D u ri n g 	 t h e 	 c o u r s e 	 o f 	 t h e 	 y e a r 	 w e 	 i n i t i a t e d 	 p l a n s 	 t o 	 s e t	
u p 	 o u r 	 o w n 	 c o m m e r c i a l 	 o p e ra t i o n s 	 i n 	 A u s t ri a , 	 t h e 	 U K ,	
P o l a n d 	 a n d 	 t h e 	 C z e c h 	 a n d 	 S l o v a k 	 R e p u b l i c s . 	 W e 	 a l s o	
e n t e r e d 	 i n t o 	 n e w 	 d i s t ri b u t i o n 	 a g r e e m e n t s 	 f o r 	 Ca n a d a	
( A l l e r p h a r m a ) 	 a n d 	 G r e e c e 	 ( K i t e 	 H e l l a s ) .
T h e 	 U S 	 i s 	 a 	 p ri m e 	 t a r g e t 	 m a r k e t 	 f o r 	 A l l e r g y 	 T h e ra p e u t i c s ;	
i t 	 r e p r e s e n t s 	 o v e r 	 4 0 % 	 b y 	 v a l u e 	 o f 	 t h e 	 w o rl d	
p h a r m a c e u t i c a l 	 m a r k e t 	 a n d 	 a l l e r g y 	 i s 	 a 	 m a j o r 	 a n d	
g r o w i n g 	 h e a l t h 	 p r o b l e m ; 	 a d d e d 	 t o 	 t h i s , 	 c u r r e n t 	 a l l e r g y	
v a c c i n e 	 t r e a t m e n t 	 p ra c t i c e 	 i s 	 o l d - fa s h i o n e d , 	 i n v a s i v e	
a n d 	 n o t 	 c o n t r o l l e d 	 b y 	 t h e 	 F D A 	 – 	 p o t e n t i a l l y 	 m a k i n g	
A l l e r g y 	 T h e ra p e u t i c s ’ 	 n e w 	 M P L
®
	 c o n t a i n i n g 	 v a c c i n e s	
v e r y 	 a t t ra c t i v e . 	 T h e r e f o r e 	 w e 	 c o n t i n u e 	 t o 	 w o r k 	 h a r d 	 t o	
p r o g r e s s 	 t o 	 P h a s e 	 I I I 	 c l i n i c a l 	 t ri a l s 	 w i t h 	 t h e 	 F D A .	
C o r p o r a t e 	 a n d 	 s o c i a l 	 r e s p o n s i b i l i t y	
A l l e r g y 	 T h e ra p e u t i c s 	 r e c o g n i s e s 	 i t s 	 r e s p o n s i b i l i t i e s 	 t o 	 i t s	
e m p l o y e e s , 	 t h e 	 w i d e r 	 c o m m u n i t y 	 a n d 	 t h e 	 e n v i r o n m e n t .	
W e 	 a r e 	 d e t e r m i n e d 	 t o 	 b e 	 r e g a r d e d 	 a s 	 a 	 w e l l - m a n a g e d ,	
r e s p o n s i b l e 	 c o m p a n y 	 i n 	 a l l 	 t h e 	 c o m m u n i t i e s 	 i n 	 w h i c h	
w e 	 o p e ra t e 	 w o rl d w i d e .
W e 	 a r e 	 c o m m i t t e d 	 t o 	 s u p p o r t i n g 	 o u r 	 e m p l o y e e s 	 a n d	
a i m 	 t o 	 h e l p 	 t h e m 	 f l o u ri s h 	 b y 	 p r o v i d i n g 	 a n 	 e n j o y a b l e	
a n d 	 s a f e 	 w o r k p l a c e 	 f r e e 	 f r o m 	 d i s c ri m i n a t i o n 	 w h e r e	
a l l 	 e m p l o y e e s 	 c a n 	 r e c e i v e 	 t h e 	 t ra i n i n g 	 t h e y 	 r e q u i r e	
t o 	 f u r t h e r 	 t h e i r 	 d e v e l o p m e n t . 	 W e 	 a l s o 	 v a l u e 	 o u r	
r e l a t i o n s h i p s 	 w i t h 	 t h e 	 l o c a l 	 c o m m u n i t y , 	 a s 	 i n d i c a t e d	 	
b y 	 o u r 	 l i n k s 	 w i t h 	 T h e 	 U n i v e r s i t y 	 o f 	 B ri g h t o n .
W e 	 h a v e 	 a 	 r e s p o n s i b i l i t y 	 t o 	 c o n s i d e r 	 o u r 	 i m p a c t 	 o n	
t h e 	 e n v i r o n m e n t 	 a n d 	 a r e 	 c o m m i t t e d 	 t o 	 m a n a g i n g 	 o u r	
e n v i r o n m e n t a l 	 p e r f o r m a n c e 	 a n d 	 m i n i m i s i n g 	 ri s k .	
S t r a t e g y 	 a n d 	 p r o s p e c t s
O u r 	 s t ra t e g y 	 g o i n g 	 f o r w a r d 	 c a n 	 b e 	 s i m p l y 	 s u m m a ri s e d .	
W e 	 w i l l 	 d e v e l o p 	 m o d e r n , 	 r e g i s t e r e d 	 a l l e r g y 	 v a c c i n e s	
w h i c h 	 a r e 	 a t t ra c t i v e 	 f o r 	 p a t i e n t s , 	 p h y s i c i a n s 	 a n d 	 p a y e r s ,	
t h e r e b y 	 w i d e n i n g 	 c o n s i d e ra b l y 	 t h e 	 m a r k e t s 	 f o r 	 w h i c h	
t h e s e 	 t r e a t m e n t s 	 a r e 	 a p p r o p ri a t e . 	 W e 	 w i l l 	 b u i l d 	 o n 	 o u r	
s t r e n g t h 	 i n 	 t h e 	 E U 	 t o 	 p r e p a r e 	 f o r 	 f u l l 	 c o m m e r c i a l i s a t i o n	
o f 	 	 P o l l i n e x
®
	 Q u a t t r o 	 o n 	 o u r 	 o w n 	 a c c o u n t 	 w h e n 	 t h e	
r e g i s t ra t i o n s 	 a r e 	 a c h i e v e d . 	 A t 	 t h e 	 a p p r o p ri a t e 	 t i m e	
w e 	 w i l l 	 s e e k 	 p a r t n e r s 	 f o r 	 m a r k e t s 	 o u t s i d e 	 t h e 	 E U , 	 i n	
p a r t i c u l a r 	 t h e 	 U S A 	 a n d 	 J a p a n . 	 W i t h 	 r e s p e c t 	 t o 	 s u b l i n g u a l	
a l l e r g y 	 v a c c i n e s , 	 w h i c h 	 s h o u l d 	 b e 	 a 	 G e n e ra l / F a m i l y	
P ra c t i t i o n e r 	 p r o d u c t 	 a n d 	 t h e r e f o r e 	 r e q u i r e 	 a 	 l a r g e r	
s a l e s f o r c e 	 t h a n 	 a 	 c o m p a n y 	 o f 	 t h e 	 s i z e 	 o f 	 A l l e r g y	
T h e ra p e u t i c s 	 c a n 	 r e a s o n a b l y 	 m u s t e r , 	 w e 	 w i l l 	 s e e k	
p a r t n e r s 	 w o rl d w i d e 	 – 	 a g a i n 	 a t 	 t h e 	 a p p r o p ri a t e 	 t i m e .	 	
W e 	 w i l l 	 c o n t i n u e 	 t o 	 m a n u fa c t u r e 	 o u r 	 o w n 	 p r o d u c t s	 	
f o r 	 s a l e 	 a c r o s s 	 t h e 	 w o rl d .	
T h e 	 s t r a t e g y 	 i s 	 a m b i t i o u s , 	 r e q u i r i n g 	 c o n t i n u e d	
a c h i e v e m e n t 	 i n 	 e v e r y 	 a r e a 	 o f 	 t h e 	 b u s i n e s s . 	 2 0 0 4 / 5	 	
w a s 	 a 	 v e r y 	 b u s y 	 y e a r 	 f o r 	 A l l e r g y 	 T h e r a p e u t i c s ; 	 2 0 0 5 / 6
p r o m i s e s 	 t o 	 b r i n g 	 e v e n 	 m o r e 	 c h a l l e n g e s 	 a n d 	 o p p o rt u n i t i e s .	
K e i t h 	 C a r t e r
Ch i e f 	 E x e c u t i v e 	 O f f i c e r
1 2 	 S e p t e m b e r 	 2 0 0 5
 Over 115,000 treatment sets of Pollinex
®
  
Quattro have been sold in Europe to date,  
mainly for allergic sensitivities to grass and  
tree pollens.
In a ‘Post Marketing Surveillance’ study of Pollinex
®
 Quattro 
carried out over 3 years and involving over 3,000 patients, 
93.5% of subjects enjoyed an improvement in their condition. 
The safety profile is also very good.
Chief  
Executive’s 
Review continued 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 0 7
D u r i n g	 t h e	 y e a r	 A l l e rg y	 T h e r a p e u t i c s	 c o m m e n c e d	 a	
m a j o r	 p r o g r a m m e	 o f	 c l i n i c a l	 t r i a l s	 w h i c h	 w i l l	 c o n t i n u e	
i n	 t h e	 c u r r e n t	 y e a r	 w i t h	 P h a s e	 I I I	 s t u d i e s	 p l a n n e d	 f o r	
c e r t a i n	 k e y	 a l l e rg e n s .
p e o p l e	 i n	 t h e	 7	 m a j o r	
m a r k e t s	 w o r l d w i d e	 s u f f e r	
f r o m	 a l l e r g i c	 r h i n i t i s .
Markets
T h e 	 $ 1 1 	 b i l l i o n 	 s p e n t 	 a n n u a l l y 	 o n 	 a l l e r g y	
t r e a t m e n t s 	 g o e s 	 a l m o s t 	 e n t i r e l y 	 o n	
s y m p t o m a t i c 	 p h a r m a c e u t i c a l s 	 s u c h 	 a s	
a n t i h i s t a m i n e s , 	 i n h a l e d 	 c o r t i c o s t e r o i d s 	 a n d 	 o t h e r	
a n t i - i n f l a m m a t o r i e s . 	 N o n e 	 o f 	 t h e s e 	 p r o d u c t s	
h a s 	 t h e 	 c u r a t i v e 	 p o t e n t i a l 	 o f 	 a l l e r g y 	 v a c c i n a t i o n .	
A l l e r g y 	 T h e ra p e u t i c s 	 i s 	 d i r e c t l y 	 r e p r e s e n t e d 	 i n 	 3 	 o f 	 t h e	
4 	 l a r g e s t 	 m a r k e t s 	 f o r 	 m a n u fa c t u r e d 	 a l l e r g y 	 v a c c i n e s	
i n 	 t h e 	 w o rl d : 	 G e r m a n y , 	 I t a l y 	 a n d 	 S p a i n . 	 A p p r o x i m a t e l y	
7 0 0 , 0 0 0 	 p a t i e n t s 	 a r e 	 t r e a t e d 	 w i t h 	 a l l e r g y 	 v a c c i n e s	
i n 	 t h e s e 	 m a r k e t s 	 – 	 l e s s 	 t h a n 	 2 . 5 % 	 o f 	 t h e 	 a l l e r g i c	
p o p u l a t i o n . 	 A l l e r g y 	 T h e ra p e u t i c s ’ 	 c u r r e n t 	 s h a r e 	 o f	
t h i s 	 n i c h e 	 m a r k e t 	 i s 	 b e l o w 	 1 5 % 	 i n 	 a l l 	 i t s 	 m a r k e t s . 	 T h e	
p o t e n t i a l 	 f o r 	 g r o w t h 	 i s 	 c o n s i d e ra b l e .
T h e 	 U S 	 m a r k e t
F o r 	 a l l e r g y 	 v a c c i n e s , 	 t h e 	 U S 	 m a r k e t 	 f o r 	 m a n u fa c t u r e d	
p r o d u c t s 	 i s 	 n e g l i g i b l e , 	 o w i n g 	 t o 	 t h e 	 c u r r e n t 	 ‘ N a m e d	
P a t i e n t ’ 	 a p p r o a c h 	 w h i c h 	 p r e v a i l s 	 t h e r e . 	 I t 	 i s 	 e s t i m a t e d	
t h a t 	 o v e r 	 2 	 m i l l i o n 	 A m e ri c a n s 	 r e c e i v e 	 l o n g 	 c o u r s e s 	 o f	
a l l e r g y 	 s h o t s 	 f o r m u l a t e d 	 b y 	 t h e i r 	 p h y s i c i a n s 	 s p e c i f i c a l l y	
f o r 	 e a c h 	 p a t i e n t . 	 T h i s 	 r e p r e s e n t s 	 l e s s 	 t h a n 	 5 % 	 o f 	 t h e	
p o p u l a t i o n 	 s u f f e ri n g 	 f r o m 	 a l l e r g i c 	 r h i n i t i s . 	 T h e r e 	 i s	
c u r r e n t l y 	 n o 	 v a c c i n e 	 r e g i s t e r e d 	 w i t h 	 t h e 	 F D A 	 a v a i l a b l e	
o n 	 t h e 	 U S 	 m a r k e t .	
R&D
A l l e r g y 	 v a c c i n e s 	 a r e 	 e f f i c a c i o u s . 	 M o s t 	 c u r r e n t 	 v a c c i n e s	
r e q u i r e 	 l o n g 	 t e r m 	 t r e a t m e n t 	 a n d 	 m u l t i p l e 	 i n j e c t i o n s .	
O u r 	 d e v e l o p m e n t 	 a p p r o a c h 	 i s 	 t o 	 a p p l y 	 t h e 	 l a t e s t	
v a c c i n e 	 t e c h n o l o g y 	 – 	 t h e 	 TL R 4 	 a g o n i s t 	 v a c c i n e 	 a d j u v a n t	
M P L
®
	 – 	 t o 	 c r e a t e 	 b e t t e r , 	 m o d e r n , 	 p a t e n t e d 	 v a c c i n e s ,	
e f f e c t i v e 	 a f t e r 	 a 	 f e w 	 s h o t s 	 o v e r 	 a 	 s h o r t 	 p e ri o d .
Po l l i n e x
®
	 Q u a t t r o
O u r 	 l e a d 	 d e v e l o p m e n t 	 p r o d u c t s 	 a r e 	 t h e 	 P o l l i n e x
®
	
Q u a t t r o 	 fa m i l y 	 o f 	 i n j e c t e d 	 v a c c i n e s 	 f o r 	 m a j o r 	 a l l e r g e n s .	
D u ri n g 	 t h e 	 c o u r s e 	 o f 	 t h e 	 y e a r , 	 f o l l o w i n g 	 c o n s u l t a t i o n	
w i t h 	 t h e 	 F D A 	 a n d 	 o t h e r 	 r e g u l a t o r y 	 a u t h o ri t i e s , 	 w e	 	
h a v e 	 o p e n e d / a p p r o v e d 	 2 	 I ND s 	 i n 	 t h e 	 U S A , 	 8 	 C T A s 	 i n	
Ca n a d a 	 a n d 	 2 	 C T A s 	 i n 	 t h e 	 E U . 	 8 	 ‘ p r e 	 P h a s e 	 I I I ’ 	 s t u d i e s	
h a v e 	 b e e n 	 c o m m e n c e d 	 a n d 	 2 	 h a v e 	 c o m p l e t e d	
s u c c e s s f u l l y . 	 S u b j e c t 	 t o 	 f u r t h e r 	 r e g u l a t o r 	 c o n s e n t s ,	 	
o u r 	 p i v o t a l 	 P h a s e 	 I I I 	 p r o g ra m m e 	 s h o u l d 	 c o m m e n c e	 	
t h i s 	 y e a r .
S u b l i n g u a l 	 ( u n d e r 	 t h e 	 t o n g u e ) 	 v a c c i n e s
D u ri n g 	 t h e 	 y e a r 	 t h e 	 U K 	 P a t e n t 	 O f f i c e 	 g ra n t e d 	 t h e	
f i r s t 	 p a t e n t 	 i n 	 o u r 	 s u b l i n g u a l 	 M P L
®
	 fa m i l y . 	 P r e c l i n i c a l	
w o r k 	 d e m o n s t ra t e d 	 i m m u n o l o g i c a l 	 e f f i c a c y 	 o f 	 M P L
®
	
d e l i v e r e d 	 i n 	 t h i s 	 p a t i e n t - f ri e n d l y 	 w a y . 	 P r o o f 	 o f 	 c o n c e p t	
‘ f i r s t - i n - m a n ’ 	 s t u d i e s 	 a r e 	 p l a n n e d 	 t o 	 c o m m e n c e 	 i n 	 t h e	
c o m i n g 	 m o n t h s .	
1 46 M
t o t a l	 a n n u a l	 s a l e s	 o f	
s y m p t o m a t i c	 a l l e r g y	 	
t r e a t m e n t s .
$ 1 1 B N
Our Potential
There is a real opportunity for market 
transformation and a revolution in  
the way allergies are treated. 0 8 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	
Job:	 [6536/Allergy	Therapeutics	Annual	Report	Front]	 Proof:	 [03]
Operator:	[Kathleen]	 Date:	 [20/09/05]
Server:	 [studio	II]
Gr os s	 s ale s	 b y	 r egion
Financial 
Review
01	 Germany – £16.5 million (72%)
0 2 	 Rest of Europe – £4.7 million (21%)
03	 North America – £1.4 million (6%)
04	 Asia – £0.3 million (1%)
01
02
03
04
T h e 	 f o l l o w i n g 	 r e v i e w 	 s h o u l d 	 b e 	 r e a d 	 i n 	 c o n j u n c t i o n 	 w i t h	
t h e 	 G r o u p ’ s 	 c o n s o l i d a t e d 	 f i n a n c i a l 	 s t a t e m e n t s 	 a n d 	 r e l a t e d	
n o t e s 	 a p p e a ri n g 	 e l s e w h e r e 	 i n 	 t h i s 	 a n n u a l 	 r e p o r t .	
T u r n o v e r
F o r 	 t h e 	 y e a r 	 e n d e d 	 3 0 	 J u n e 	 2 0 0 5 	 t o t a l 	 g r o s s 	 s a l e s	
i n c r e a s e d 	 b y 	 2 0 % 	 t o 	 £ 2 2 . 9 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ 1 9 . 1 	 m i l l i o n ) ;	
a f t e r 	 s t a t u t o r y 	 r e b a t e s 	 i n 	 t h e 	 G e r m a n 	 m a r k e t 	 n e t 	 s a l e s	
w e r e 	 £ 2 0 . 6 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ 1 8 . 0 	 m i l l i o n ) 	 a n 	 i n c r e a s e	 	
o v e r 	 t h e 	 p r e v i o u s 	 y e a r 	 o f 	 1 4 % .	
O w n 	 m a r k e t s
T h e 	 G r o u p 	 c o m p e t e s 	 d i r e c t l y 	 i n 	 3 	 m a r k e t s , 	 3 	 o f 	 E u r o p e ’ s	
4 	 m o s t 	 i m p o r t a n t 	 f o r 	 a l l e r g y 	 v a c c i n a t i o n : 	 G e r m a n y , 	 I t a l y	
a n d 	 S p a i n .
T h e 	 G r o u p 	 i s 	 t h e 	 t h i r d 	 l a r g e s t 	 a l l e r g y 	 v a c c i n e 	 c o m p a n y 	 i n	
G e r m a n y , 	 w i t h 	 a n n u a l 	 g r o s s 	 s a l e s 	 o f 	 £ 1 6 . 4 	 m i l l i o n 	 ( 2 0 0 4 :	
£ 1 2 . 8 	 m i l l i o n ) , 	 a n 	 i n c r e a s e 	 o v e r 	 t h e 	 p r e v i o u s 	 y e a r 	 o f 	 2 8 % .	
T h e 	 G e r m a n 	 m a r k e t 	 i s 	 t h e 	 l a r g e s t 	 i n 	 t h e 	 w o rl d 	 f o r 	 ‘ f i n i s h e d	
f o r m ’ 	 a l l e r g y 	 v a c c i n e s ; 	 t h e 	 G r o u p ’ s 	 s h a r e 	 i s 	 g r o w i n g 	 a n d	
l a s t 	 y e a r 	 a m o u n t e d 	 t o 	 1 3 % . 	 T ra d i n g 	 i n 	 G e r m a n y 	 i m p r o v e d	
d u ri n g 	 t h e 	 y e a r 	 a s 	 t h e 	 e f f e c t s 	 o f 	 p a t i e n t 	 c o - p a y m e n t ,	
w h i c h 	 t e m p o ra ri l y 	 r e d u c e d 	 t h e 	 f r e q u e n c y 	 o f 	 p a t i e n t s ’	
d o c t o r 	 v i s i t s 	 w h e n 	 i n t r o d u c e d 	 i n 	 2 0 0 3 , 	 d i m i n i s h e d . 	 T h e	
r e b a t e 	 o n 	 p h a r m a c e u t i c a l 	 s a l e s , 	 w h i c h 	 w a s 	 m a r k e t -
w i d e , 	 w a s 	 i n c r e a s e d 	 i n 	 J a n u a r y 	 2 0 0 4 	 t o 	 1 6 % 	 f r o m 	 t h e	
6 % 	 i n 	 f o r c e 	 t h e 	 p r e c e d i n g 	 y e a r . 	 T h i s 	 h a s 	 b e e n 	 c o s t l y 	 t o	
t h e 	 G r o u p , 	 s i n c e 	 a p p r o x i m a t e l y 	 7 0 % 	 o f 	 s a l e s 	 o ri g i n a t e	
i n 	 G e r m a n y , 	 w i t h 	 a 	 c h a r g e 	 o f 	 £ 2 . 3 	 m i l l i o n 	 f o r 	 t h e 	 y e a r	
( 2 0 0 4 : 	 £ 1 . 1 	 m i l l i o n ) . 	 A s 	 f r o m 	 1 	 J a n u a r y 	 2 0 0 5 , 	 t h e 	 r e b a t e	
h a s 	 r e v e r t e d 	 t o 	 6 % 	 a n d 	 i s 	 n o w 	 c a l c u l a t e d 	 u s i n g 	 c u r r e n t 	 l i s t	
p ri c e s , 	 i n s t e a d 	 o f 	 t h e 	 Oc t o b e r 	 2 0 0 2 	 p ri c e s 	 u s e d 	 p r e v i o u s l y .
I n 	 I t a l y 	 a n d 	 S p a i n 	 t h e 	 G r o u p 	 h a s 	 c o n t i n u e d 	 t o 	 i n c r e a s e 	 i t s	
m a r k e t 	 s h a r e . 	 I n 	 I t a l y 	 a n n u a l 	 s a l e s 	 w e r e 	 £ 2 . 1 	 m i l l i o n , 	 a n	
i n c r e a s e 	 o f 	 1 7 % 	 a n d 	 i n 	 S p a i n 	 a n n u a l 	 s a l e s 	 i n c r e a s e d 	 b y	
2 4 % 	 t o 	 £ 1 . 4 	 m i l l i o n .
L i c e n c e e s
T h e 	 G r o u p 	 a l s o 	 s e l l s 	 t h r o u g h 	 l i c e n s e e s 	 a n d 	 d i s t r i b u t o r s ,	
a c c o u n t i n g 	 f o r 	 1 3 % 	 o f 	 t h e 	 g r o s s 	 s a l e s . 	 T o t a l 	 s a l e s 	 f o r 	 t h e	
y e a r 	 w e r e 	 £ 3 . 0 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ 3 . 4 	 m i l l i o n ) 	 a 	 d e c r e a s e 	 o f	
1 2 % 	 o n 	 t h e 	 p r e v i o u s 	 y e a r , 	 a n d 	 i n c l u d e d 	 a 	 m i l e s t o n e 	 o f	 	
£ 1 	 m i l l i o n 	 f r o m 	 t h e 	 C o m p a n y ’ s 	 C a n a d i a n 	 l i c e n s e e 	 f o r	
P o l l i n e x
®
	 Q u a t t r o .	
L o w e r 	 s a l e s 	 h a v e 	 b e e n 	 r e c o r d e d 	 i n 	 s o m e 	 t e r ri t o ri e s .	
I n 	 l i n e 	 w i t h 	 t h e 	 s t ra t e g y 	 o f 	 b u i l d i n g 	 a 	 p a n 	 E u r o p e a n	
s a l e s 	 f o r c e , 	 t h e 	 c o n t ra c t 	 w i t h 	 P l i v a , 	 w h o 	 h a d 	 t h e 	 ri g h t s	
t o 	 t h e 	 C e n t ra l 	 a n d 	 E a s t e r n 	 E u r o p e 	 ( C E E ) 	 m a r k e t s , 	 w a s	
t e r m i n a t e d . 	 C o n s e q u e n t l y 	 a n y 	 u n s o l d 	 s t o c k 	 i n 	 t h e 	 C E E	
m a r k e t 	 w a s 	 b o u g h t 	 b a c k 	 f r o m 	 P l i v a 	 a n d 	 s a l e s 	 t h a t 	 h a d	
b e e n 	 r e c o r d e d 	 i n 	 J u n e 	 o f 	 t h e 	 p r e v i o u s 	 y e a r 	 w e r e 	 n o t	
r e p e a t e d 	 t h i s 	 y e a r .	
P r o d u c t 	 s a l e s
T h e	 G r o u p ’ s	 f l a g s h i p	 p r o d u c t ,	 P o l l i n e x
®
	 Q u at t r o ,	
co n t i n u e d	 t o	 s e l l	 e x c e p t i o n a l l y	 w e l l ,	 w i t h	 g r o s s	 s a l e s	 	
o f	 £ 7 . 2	 m i l l i o n	 ( 2 0 0 4	 £ 5 . 1	 m i l l i o n )	 a n	 i n c r ea s e	 o f	 4 1 %	
o v e r	 t h e	 p r e v i o u s	 y ea r .	
C o s t 	 o f 	 s a l e s 	 a n d 	 n e t 	 o p e r a t i n g 	 e x p e n s e s
D e spi t e 	 t h e 	 r e b a t e 	 o n 	 s a l e s 	 i n 	 G e r m a n y 	 o f 	 £ 2 . 3 	 m i l l i o n	
t h e 	 g r o s s 	 m a r g i n 	 h a s 	 i m p r o v e d 	 t o 	 7 6 % 	 d u e 	 t o : 	 t h e 	 u s e	
o f 	 p r o d u c t i o n 	 r e s o u r c e s 	 i n 	 su p p o r t i n g 	 t h e 	 R & D 	 a c t i v i t i e s ,	
t h e 	 o n e - o f f 	 r e l e a s e 	 o f 	 a 	 s t o c k 	 o b s o l e s c e n c e 	 p r o v i s i o n	
a n d 	 t h e 	 i n c l u s i o n 	 o f 	 £ 1 	 m i l l i o n 	 o f 	 m i l e s t o n e s 	 w i t h 	 n o	
a s s o c i a t e d 	 c o s t 	 o f 	 g o o d s . 	 C o s t 	 o f 	 g o o d s 	 s o l d 	 w e r e 	 1 2 %	
l o w e r 	 t h a n 	 i n 	 t h e 	 p r e v i o u s 	 y e a r 	 a t 	 £ 4 . 9 	 m i l l i o n .
A n 	 i n v e s t m e n t 	 i n 	 a d d i t i o n a l 	 s a l e s 	 p e o p l e 	 a n d 	 a n 	 u p l i f t	 	
i n 	 t h e 	 m a r k e t i n g 	 a n d 	 p r o m o t i o n 	 sp e n d 	 i n c r e a s e d 	 t h e	
d i s t r i b u t i o n 	 c o s t s 	 b y 	 2 2 % 	 i n 	 t h e 	 y e a r 	 t o 	 £ 8 . 0 	 m i l l i o n .	
H o w e v e r 	 a d m i n i s t r a t i o n 	 c o s t s 	 w e r e 	 h e l d 	 a t 	 t h e 	 s a m e	
l e v e l 	 a s 	 t h e 	 p r e c e d i n g 	 y e a r 	 a t 	 £ 4 . 3 	 m i l l i o n . 	 A s 	 d i s c u s s e d	
i n 	 t h e 	 C h i e f 	 E x e c u t i v e ’ s 	 R e v i e w , 	 t h e 	 d e v e l o p m e n t	
p r o g r a m m e 	 f o r 	 P o l l i n e x
®
	 Q u a t t r o 	 w a s 	 i n i t i a t e d 	 t h i s	 	
y e a r 	 a n d 	 a s 	 a 	 r e su l t 	 d e v e l o p m e n t 	 c o s t s 	 a r e 	 s ig ni f i c a n t l y	
h ig h e r 	 t h a n 	 i n 	 t h e 	 p r e v i o u s 	 y e a r 	 a t 	 £ 5 . 6 	 m i l l i o n 	 ( 2 0 0 4 :	
£ 0 . 5 	 m i l l i o n ) . 	 T h i s 	 e x p e n d i t u r e 	 su p p o r t e d 	 t h e 	 o n g o i n g	
e a r l y 	 p h a s e 	 d e v e l o p m e n t 	 a c t i v i t y 	 a s s o c i a t e d 	 w i t h 	 g r a s s ,	
t r e e 	 a n d 	 r a g w e e d 	 a l l e r g e n s 	 a n d 	 t h e 	 pi v o t a l 	 r a g w e e d	
s t u d y 	 i n 	 C a n a d a , 	 d e s ig n e d 	 t o 	 a c h i e v e 	 t h e 	 r e g i s t r a t i o n	 	
o f 	 P o l l i n e x
®
	 Q u a t t r o 	 i n 	 C a n a d a 	 f o r 	 r a g w e e d 	 e a r l i e r 	 t h a n	
a n t i c i p a t e d 	 a t 	 t h e 	 t i m e 	 o f 	 t h e 	 I P O 	 i n 	 O c t o b e r 	 2 0 0 4 . 	 O f	
t h e 	 t o t a l 	 R & D 	 e x p e n d i t u r e 	 £ 1 . 5 	 m i l l i o n 	 r e l a t e s 	 t o 	 i n t e r n a l	
d e v e l o p m e n t 	 c o s t s . 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 0 9
01
33%
18%
18%
19%
12%
 The Group’s flagship product,  
Pollinex
®
 Quattro, continued to  
sell exceptionally well with gross  
sales up 41% on last year.
R e su lt s 	 o f 	 o p e r a t i o n
T h e 	 G r o u p 	 r e c o r d e d 	 a n 	 o p e r a t i n g 	 l o s s 	 o f 	 £ 2 . 4 	 m i l l i o n	
( 2 0 0 4 : 	 p r o f i t 	 £ 1 . 6 	 m i l l i o n ) . 	 H o w e v e r , 	 b e f o r e 	 d e v e l o p m e n t	
c o s t s , 	 t h e 	 G e r m a n 	 r e b a t e s 	 a n d 	 e x c e p t i o n a l 	 i t e m s , 	 t h e	
o p e r a t i n g 	 p r o f i t 	 w a s 	 £ 6 . 1 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ 3 . 1 	 m i l l i o n )	
i n c l u d i n g 	 m i l e s t o n e 	 i n c o m e 	 o f 	 £ 1 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ n i l ) ;	
w h i c h 	 a l l o w s 	 f o r 	 a 	 m o r e 	 r e a s o n a b l e 	 c o m p a r i s o n 	 o f	
p e r f o r m a n c e 	 a n d 	 h ig h l ig h t s 	 a n 	 i m p r e s s i v e 	 r e su l t 	 f r o m	
t h e 	 c o r e 	 b u s i n e s s 	 t h i s 	 y e a r . 	 I n t e r e s t 	 r e c e i v a b l e 	 w a s	
s ig ni f i c a n t l y 	 h ig h e r 	 a t 	 £ 0 . 5 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ 0 . 1 	 m i l l i o n )	 	
a s 	 a 	 r e su l t 	 o f 	 h ig h e r 	 c a sh 	 b a l a n c e s 	 f o l l o w i n g 	 t h e 	 I P O .
T a xa t i o n
A s 	 a 	 r e s u l t 	 o f 	 t h e 	 i n v e s t m e n t 	 i n 	 d e v e l o p m e n t , 	 t h e 	 G r o u p	
h a s 	 t h e 	 o p t i o n 	 t o 	 r e c e i v e 	 a 	 t a x 	 c r e d i t 	 o f 	 £ 0 . 7 	 m i l l i o n	
w h i c h , 	 i f 	 c l a i m e d , 	 i s 	 e x p e c t e d 	 t o 	 b e 	 r e c e i v e d 	 i n 	 t h e	
f o l l o w i n g 	 f i n a n c i a l 	 y e a r . 	 I n 	 t h e 	 p r e v i o u s 	 y e a r 	 n o 	 t a x 	 c r e d i t	
w a s 	 c l a i m e d 	 b u t 	 t a x 	 l o s s e s 	 s u r r e n d e r e d 	 t o 	 a 	 s h a r e h o l d e r	
u n d e r 	 c o n s o r t i u m 	 r e l i e f 	 l e g i s l a t i o n , 	 l e s s 	 t h e 	 r e l e a s e 	 o f 	 a	
d e f e r r e d 	 t a x 	 c r e d i t , 	 r e s u l t e d 	 i n 	 a 	 c h a r g e 	 o f 	 £ 0 . 4 	 m i l l i o n .	
T h e 	 G r o u p 	 h a s 	 l o s s e s 	 t o 	 c a r r y 	 f o r w a r d 	 f o r 	 t h e 	 c u r r e n t 	 y e a r	
o f 	 £ 8 . 9 	 m i l l i o n .
N e t 	 a ss e t s
N e t 	 a s s e t s 	 a t 	 3 0 	 J u n e 	 2 0 0 5 	 w e r e 	 £ 2 0 . 1 	 m i l l i o n 	 ( 2 0 0 4 :	
£ 7 . 1 	 m i l l i o n ) , 	 a n 	 i n c r e a s e 	 o f 	 £ 1 3 . 0 	 m i l l i o n 	 d u e 	 p r i m a r i l y	
t o 	 t h e 	 £ 1 5 	 m i l l i o n 	 n e t 	 p r o c e e d s 	 r a i s e d 	 f r o m 	 t h e 	 I P O 	 i n	
O c t o b e r 	 2 0 0 4 .
	
I n t a n g i b l e 	 a s s e t s 	 c o m p ri s e 	 g o o d w i l l 	 a n d 	 k n o w - h o w 	 a n d	
c o n t i n u e 	 t o 	 b e 	 a m o r t i s e d 	 o v e r 	 1 5 	 y e a r s .
C a p i t a l 	 e x p e n d i t u r e 	 o n 	 t a n g i b l e 	 f i x e d 	 a s s e t s 	 i n 	 t h e 	 y e a r	
w a s 	 £ 0 . 9 	 m i l l i o n , 	 c o n t r i b u t i n g 	 t o 	 t h e 	 i n c r e a s e 	 i n 	 t h e	 	
v a l u e 	 o f 	 t a n g i b l e 	 f i x e d 	 a s s e t s 	 t o 	 £ 2 . 1 	 m i l l i o n 	 f r o m	 	
£ 1 . 7 	 m i l l i o n . 	 T h i s 	 e x p e n d i t u r e 	 i n c l u d e d 	 u p g r a d e s 	 t o 	 p l a n t	
a n d 	 m a c h i n e r y 	 a n d 	 f u r t h e r 	 p a y m e n t s 	 o n 	 t h e 	 E R P 	 s y s t e m .
S t o c k 	 h a s 	 i n c r e a s e d 	 d u ri n g 	 t h e 	 y e a r 	 t o 	 £ 2 . 7 	 m i l l i o n 	 ( 2 0 0 4 :	
£ 1 . 8 	 m i l l i o n ) 	 t o 	 s u p p o r t 	 t h e 	 i n c r e a s e 	 i n 	 s a l e s 	 a n d 	 a f t e r 	 a	
n u m b e r 	 o f 	 o n e - o f f 	 e v e n t s 	 i n c l u d i n g 	 t h e 	 r e l e a s e 	 o f 	 a 	 s t o c k	
o b s o l e s c e n c e 	 p r o v i s i o n 	 o f 	 £ 0 . 3 	 m i l l i o n . 	 T h e 	 i n c r e a s e 	 i n	
d e b t o r s 	 fa l l i n g 	 d u e 	 w i t h i n 	 1 	 y e a r 	 t o 	 £ 3 . 2 	 m i l l i o n 	 ( 2 0 0 4 :	
£ 2 . 1 	 m i l l i o n ) 	 r e s u l t s 	 m a i n l y 	 f r o m 	 t h e 	 m i l e s t o n e 	 i n v o i c e d	
o f 	 £ 1 	 m i l l i o n .
Cr e d i t o r s 	 fa l l i n g 	 d u e 	 w i t h i n 	 1 	 y e a r 	 i n c r e a s e d 	 s i g n i f i c a n t l y	
a t 	 t h e 	 y e a r 	 e n d 	 t o 	 £ 6 . 1 	 m i l l i o n 	 ( 2 0 0 4 : 	 £ 3 . 3 	 m i l l i o n ) ,	
p ri m a ri l y 	 d u e 	 t o 	 a n 	 i n c r e a s e 	 i n 	 a c c r u a l s 	 r e l a t i n g 	 t o	
d e v e l o p m e n t 	 a c t i v i t i e s .
C a p i t a l 	 s t r u c t u r e
T h e 	 G r o u p 	 f i n a n c e s 	 i t s 	 o p e ra t i o n s 	 t h r o u g h 	 c a s h 	 g e n e ra t e d	
f r o m 	 i t s 	 c o r e 	 b u s i n e s s 	 a n d 	 t h e 	 n e t 	 p r o c e e d s 	 ra i s e d 	 f r o m	
t h e 	 I P O .
T h e 	 G r o u p ’ s 	 f u n d i n g 	 r e q u i r e m e n t s 	 d e p e n d 	 o n 	 a 	 n u m b e r	 	
o f 	 fa c t o r s , 	 i n c l u d i n g 	 t h e 	 G r o u p ’ s 	 p r o d u c t 	 d e v e l o p m e n t	
p r o g ra m m e s , 	 w h i c h 	 w e r e 	 i n i t i a t e d 	 i n 	 t h e 	 y e a r 	 t o 	 J u n e	
2 0 0 5 	 a n d 	 a r e 	 p l a n n e d 	 t o 	 i n c r e a s e 	 f u r t h e r 	 i n 	 a c t i v i t y	 	
i n 	 t h e 	 f o l l o w i n g 	 f i n a n c i a l 	 y e a r . 	 T h e 	 G r o u p 	 c u r r e n t l y	 	
h a s 	 n o 	 d e b t 	 o n 	 i t s 	 b a l a n c e 	 s h e e t 	 b u t 	 w i l l 	 i n 	 t h e 	 f u t u r e	 	
b e 	 c o n s i d e ri n g 	 b a n k 	 d e b t 	 a s 	 a 	 m e a n s 	 o f 	 f i n a n c i n g 	 i t s	
m a n u fa c t u ri n g 	 r e l a t e d 	 i n c r e a s e s 	 i n 	 w o r k i n g 	 c a p i t a l 	 a n d	
c a p i t a l 	 e x p e n d i t u r e 	 a s 	 t h e 	 c o r e 	 b u s i n e s s 	 p r e p a r e s 	 i t s e l f	 	
f o r 	 s u p p l y i n g 	 w o rl d w i d e 	 m a r k e t s .
C a s h 	 f l o w s
A s 	 a t 	 3 0 	 J u n e 	 2 0 0 5 	 c a s h 	 t o t a l l e d 	 £ 1 5 . 1 	 m i l l i o n , 	 a n 	 i n c r e a s e	
o f 	 £ 1 3 . 6 	 m i l l i o n 	 f r o m 	 £ 1 . 5 	 m i l l i o n 	 a t 	 3 0 	 J u n e 	 2 0 0 4 . 	 F o r	 	
t h e 	 y e a r 	 n e t 	 c a s h 	 o u t f l o w 	 b e f o r e 	 f i n a n c i n g 	 a m o u n t e d 	 t o	
£ 0 . 4 	 m i l l i o n 	 c o m p a r e d 	 t o 	 n e t 	 i n f l o w 	 i n 	 t h e 	 p r e v i o u s 	 y e a r	
( 2 0 0 4 : 	 £ 1 . 1 	 m i l l i o n ) . 	 N e t 	 c a s h 	 o u t f l o w 	 i n c l u d e s 	 s i g n i f i c a n t	
p r o d u c t 	 d e v e l o p m e n t 	 c o s t s 	 o f 	 £ 3 . 8 	 m i l l i o n 	 w h i c h , 	 w h e n	
a d d e d 	 b a c k 	 t o 	 t h e 	 o p e ra t i n g 	 a c t i v i t i e s , 	 g e n e ra t e s 	 c o r e 	 n e t	
c a s h 	 i n f l o w 	 o f 	 £ 3 . 4 	 m i l l i o n .
D u r i n g 	 t h e 	 p r e v i o u s 	 y e a r , 	 c a s h 	 g e n e r a t e d 	 f r o m 	 o p e r a t i o n s	
w a s 	 u s e d 	 p r i m a r i l y 	 t o 	 f u n d 	 c a p i t a l 	 e x p e n d i t u r e 	 a n d 	 a 	 s h a r e	
b u y - b a c k 	 f o r 	 t h e 	 c r e a t i o n 	 o f 	 a n 	 e m p l o y e e 	 b e n e f i t 	 t r u s t .	
I a n 	 Po s t l e t h w a i t e
F i n a n c e 	 D i r e c t o r
1 2 	 S e p t e m b e r 	 2 0 0 5
+20 %
T o t a l	 g r o s s	 s a l e s	 i n c r e a s e d	 	
t o	 £ 2 2 . 9	 m i l l i o n	 u p	 2 0 %	 o n	 	
l a s t	 y e a r .
+24 %
S a l e s	 i n	 S p a i n	 w e r e	 	
u p	 2 4 %	 t o	 £ 1 . 4	 m i l l i o n .
0 1 	 Pollinex
®
 Quattro – £7.2 million (33%)
02	 Oralvac
®
 Plus – £3.9 million (18%)
03	 Tyrosine – £3.8 million (18%)
04	 Pollinex
®
 – £4.1 million (19%)
05	 Others – £2.9 million (12%)
Pr oduct	 s ale s	 2005
01
02
03
04
05 1 0 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	
Job:	 [6536/Allergy	Therapeutics	Annual	Report	Front]	 Proof:	 [03]
Operator:	[Kathleen]	 Date:	 [20/09/05]
Server:	 [studio	II]
0 1 	 I g n a c e 	 G o e t h a l s
N o n - e x e c u t i v e 	 C h a i r m a n 	 ( 5 9 )
P r e v i o u s l y 	 Ch i e f 	 E x e c u t i v e 	 o f 	 A l l e r g y 	 T h e ra p e u t i c s ,	
I g n a c e 	 w a s 	 a p p o i n t e d 	 t o 	 N o n - e x e c u t i v e 	 Ch a i r m a n 	 i n	
N o v e m b e r 	 2 0 0 3 . 	 I g n a c e 	 h a s 	 h a d 	 a 	 s u c c e s s f u l 	 c a r e e r 	 i n	
t h e 	 p h a r m a c e u t i c a l 	 i n d u s t r y 	 w i t h 	 E l i 	 L i l l y , 	 S q u i b b / B ri s t o l	
M y e r s 	 S q u i b b 	 a n d 	 S m i t h K l i n e 	 B e e c h a m , 	 ri s i n g 	 t o 	 t h e	
h i g h e s t 	 l e v e l s 	 p ri o r 	 t o 	 r e t i ri n g 	 a t 	 t h e 	 e n d 	 o f 	 1 9 9 8 , 	 w h e n	
h e 	 w a s 	 h e a d 	 o f 	 w o rl d w i d e 	 s u p p l y 	 o p e ra t i o n s .	
H i s 	 e x p e ri e n c e 	 i s 	 e x c e p t i o n a l l y 	 b r o a d , 	 c o v e ri n g 	 s a l e s 	 a n d	
m a r k e t i n g , 	 c o u n t r y 	 a n d 	 r e g i o n a l 	 g e n e ra l 	 m a n a g e m e n t	
p o s i t i o n s , 	 l i c e n s i n g 	 a n d 	 b u s i n e s s 	 d e v e l o p m e n t , 	 b u s i n e s s	
u n i t 	 m a n a g e m e n t 	 ( B i o l o g i c a l s 	 a n d 	 A n i m a l 	 H e a l t h )	 	
a n d 	 s u p p l y .
I g n a c e 	 h a s 	 a 	 d e g r e e 	 i n 	 A p p l i e d 	 E c o n o m i c s 	 f r o m 	 t h e	
U n i v e r s i t y 	 o f 	 L o u v a i n 	 ( B e l g i u m ) 	 a n d 	 a n 	 M B A 	 f r o m	 	
t h e 	 U n i v e r s i t y 	 o f 	 Ch i c a g o .
0 2 	 K e i t h 	 C a r t e r
C h i e f 	 E x e c u t i v e 	 O f f i c e r 	 ( 4 6 )
K e i t h 	 i s 	 a 	 f o u n d i n g 	 s h a r e h o l d e r 	 o f 	 A l l e r g y 	 T h e ra p e u t i c s	
a n d 	 w a s 	 p a r t 	 o f 	 t h e 	 t e a m 	 t h a t 	 o r c h e s t ra t e d 	 t h e 	 M B I 	 o f	
t h e 	 C o m p a n y 	 f r o m 	 S m i t h K l i n e 	 B e e c h a m . 	 P ri o r 	 t o 	 t h i s 	 h i s	
c a r e e r 	 w a s 	 s p e n t 	 i n 	 c o r p o ra t e 	 a d v i s o r y 	 a n d 	 c o r p o ra t e	
f i n a n c e 	 w o r k 	 w i t h 	 L l o y d s 	 M e r c h a n t 	 B a n k , 	 D r e x e l	
B u r n h a m 	 L a m b e r t 	 a n d 	 l a t t e rl y 	 a t 	 N a t W e s t 	 M a r k e t s , 	 t h e	
i n v e s t m e n t 	 b a n k i n g 	 a r m 	 o f 	 t h e 	 N a t i o n a l 	 W e s t m i n s t e r	
B a n k , 	 w h e r e 	 h e 	 h e a d e d 	 t h e 	 P h a r m a 	 G r o u p .	
H e 	 b e g a n 	 s p e c i a l i s i n g 	 i n 	 a d v i c e 	 t o 	 t h e 	 p h a r m a c e u t i c a l s	
i n d u s t r y 	 i n 	 1 9 9 0 , 	 w h e n 	 h e 	 ra n 	 h i s 	 o w n 	 c o r p o ra t e 	 f i n a n c e	
b o u t i q u e . 	 K e i t h 	 h a s 	 a 	 F i r s t 	 C l a s s 	 H o n o u r s 	 d e g r e e 	 i n	
E c o n o m i c s 	 f r o m 	 Ca m b ri d g e 	 U n i v e r s i t y .
0 3 	 I a n 	 Po s t l e t h w a i t e
F i n a n c e 	 D i r e c t o r 	 ( 4 2 )
I a n 	 P o s t l e t h w a i t e 	 j o i n e d 	 A TL 	 i n 	 A p ri l 	 2 0 0 2 	 a s 	 F i n a n c e	
D i r e c t o r . 	 P ri o r 	 t o 	 t h i s 	 h e 	 w o r k e d 	 f o r 	 E l l e r m a n 	 I n v e s t m e n t s	
( 1 9 9 7 – 2 0 0 2 ) , 	 a 	 U K 	 p ri v a t e 	 e q u i t y 	 h o u s e , 	 u n d e r t a k i n g	
t h e 	 r o l e s 	 o f 	 Ch i e f 	 E x e c u t i v e 	 O f f i c e r 	 w i t h 	 A F S , 	 o n e 	 o f	
t h e 	 l a r g e s t 	 i n d e p e n d e n t 	 f i n a n c e 	 h o u s e s 	 i n 	 t h e 	 U K , 	 a n d	
F i n a n c e 	 D i r e c t o r 	 w i t h 	 a 	 n u m b e r 	 o f 	 s u c c e s s f u l 	 s t a r t 	 u p	
t e c h n o l o g y 	 c o m p a n i e s .
P r e v i o u s l y 	 h e 	 h e l d 	 s e n i o r 	 f i n a n c e 	 p o s i t i o n s 	 w i t h 	 E ri c s s o n ,	
f r o m 	 1 9 9 4 	 t o 	 1 9 9 7 , 	 a n d 	 P h i l i p s 	 E l e c t r o n i c s 	 f r o m 	 1 9 8 9 	 t o	
1 9 9 4 . 	 H e 	 i s 	 a 	 q u a l i f i e d 	 a c c o u n t a n t 	 a n d 	 a 	 F e l l o w 	 o f 	 t h e	
A s s o c i a t i o n 	 o f 	 Ch a r t e r e d 	 C e r t i f i e d 	 A c c o u n t a n t s .	
I a n 	 h a s 	 a 	 BS c 	 ( H o n s ) 	 i n 	 G e o l o g i c a l 	 S c i e n c e s 	 f r o m	 	
A s t o n 	 U n i v e r s i t y .
0 4 	 T h o m a s 	 H o l d i c h
R & D 	 D i r e c t o r 	 ( 4 6 )
T o m 	 j o i n e d 	 A l l e r g y 	 T h e r a p e u t i c s 	 i n 	 A u g u s t 	 2 0 0 4	
f r o m 	 S h i r e 	 P h a r m a c e u t i c a l s , 	 w h e r e 	 h e 	 w a s 	 H e a d 	 o f	
C l i n i c a l 	 R e s e a r c h . 	 H e 	 h a s 	 1 9 	 y e a r s’ 	 c l i n i c a l 	 r e s e a r c h	
e x p e r i e n c e , 	 i n c l u d i n g 	 s e n i o r 	 p o s i t i o n s 	 a t 	 A s t r a Z e n e c a	
a n d 	 S m i t h K l i n e 	 B e e c h a m .
Board of Directors
02
03 04
01 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 1 1
0 5 	 A n d r e w 	 T u r n b u l l
D i r e c t o r , 	 B u s i n e s s 	 D e v e l o p m e n t 	 ( 3 2 )
A n d r e w 	 j o i n e d 	 A TL 	 i n 	 A u g u s t 	 1 9 9 8 	 a n d 	 w a s 	 a p p o i n t e d	
t o 	 t h e 	 B o a r d 	 i n 	 A u g u s t 	 2 0 0 2 , 	 h a v i n g 	 b e e n 	 t h e 	 U K	
O p e ra t i o n s 	 M a n a g e r 	 s i n c e 	 F e b r u a r y 	 2 0 0 0 .
I n 	 a d d i t i o n 	 t o 	 B u s i n e s s 	 D e v e l o p m e n t , 	 h e 	 i s 	 sp e c i f i c a l l y	
r e sp o n s i b l e 	 f o r 	 S u p p l y 	 O p e r a t i o n s , 	 P r o d u c t i o n ,	
T e c h n i c a l 	 S e r v i c e s , 	 P u r c h a s i n g , 	 L o g i s t i c s , 	 I T 	 a n d	
M a r k e t 	 S u p p o r t . 	 B e f o r e 	 j o i n i n g 	 A T L 	 A n d r e w 	 m a n a g e d	
t h e 	 p r o c e s s 	 e n g i n e e r i n g 	 f u n c t i o n 	 o f 	 P r o c i p 	 L t d , 	 a	
d e s ig n 	 a n d 	 b u i l d 	 c o m p a n y 	 w h i c h 	 sp e c i a l i s e s 	 i n 	 t h e	
p h a r m a c e u t i c a l 	 s e c t o r . 	 A n d r e w 	 h a s 	 a 	 w e a l t h 	 o f	
e x p e r i e n c e 	 i n 	 p r o c e s s 	 d e s ig n , 	 c o n t r o l 	 a n d 	 p r o j e c t	
m a n a g e m e n t 	 a n d 	 g a i n e d 	 a 	 B C h e m E 	 ( H o n s ) 	 a t	
C a n t e r b u r y 	 U n i v e r s i t y , 	 C h r i s t c h u r c h , 	 N e w 	 Z e a l a n d .
0 6 	 C h r i s t i a n 	 G r ä t z
D i r e c t o r , 	 M a r k e t 	 O p e r a t i o n s 	 ( 5 2 )
Ch ri s t i a n 	 i s 	 a l s o 	 G e n e ra l 	 M a n a g e r 	 o f 	 B e n c a r d 	 A l l e r g i e .	
Ch ri s t i a n 	 j o i n e d 	 t h e 	 C o m p a n y 	 i n 	 J u l y 	 1 9 9 8 . 	 P ri o r 	 t o 	 t h i s	
h e 	 w a s 	 M a r k e t i n g 	 & 	 S a l e s 	 D i r e c t o r 	 a t 	 A k z o 	 N o b e l /
O r g a n o n 	 G m b H 	 f r o m 	 1 9 9 6 	 t o 	 1 9 9 8 .
D u ri n g 	 h i s 	 t i m e 	 a t 	 O r g a n o n 	 h e 	 r e s t r u c t u r e d 	 t h e	
c o m p a n y , 	 i n - l i c e n s e d 	 t h e 	 e n t i r e 	 g y n a e c o l o g y 	 p r o d u c t	
p o r t f o l i o 	 f r o m 	 O ri o n 	 ( F i n l a n d ) 	 a n d 	 s u c c e s s f u l l y 	 m a n a g e d	
a 	 J o i n t 	 V e n t u r e 	 w i t h 	 J a n s s e n - Ci l a g . 	 P r e v i o u s l y 	 Ch ri s t i a n	
w a s 	 B u s i n e s s 	 U n i t 	 D i r e c t o r 	 a t 	 A m e ri c a n 	 C y a n a m i d /
L e d e rl e 	 G m b H 	 ( 1 9 9 1 – 1 9 9 6 ) .	
H e 	 b r o u g h t 	 L e d e rl e ’ s 	 v a c c i n e s 	 f r o m 	 U S A 	 t o 	 E u r o p e ,	
w h e r e 	 t h e y 	 w e r e 	 l a u n c h e d 	 i n 	 1 9 9 4 	 a n d 	 ra p i d l y 	 g a i n e d	
s i g n i f i c a n t 	 m a r k e t 	 s h a r e . 	 W h e n 	 L e d e rl e 	 a n d 	 A m e ri c a n	
H o m e 	 C o r p . 	 m e r g e d , 	 Ch ri s t i a n 	 w a s 	 r e s p o n s i b l e 	 f o r	
r e s t r u c t u ri n g 	 t h e 	 n e w 	 c o m p a n y 	 a n d 	 w a s 	 a p p o i n t e d	
D i v i s i o n 	 D i r e c t o r , 	 G e r m a n y .
B e f o r e 	 j o i n i n g 	 L e d e rl e , 	 h e 	 h e l d 	 a 	 n u m b e r 	 o f 	 s e n i o r	
m a n a g e m e n t 	 p o s i t i o n s 	 w i t h 	 l a r g e 	 c o m p a n i e s , 	 i n c l u d i n g	
B A S F / K n o l l 	 A G 	 a n d 	 B e i e r s d o r f 	 A G. 	 Ch ri s t i a n 	 l e c t u r e d 	 i n	
e c o n o m i c s 	 a t 	 U n i v e r s i t i e s 	 o f 	 H a g e n 	 a n d 	 G e l s e n k i r c h e n	
a n d 	 h a s 	 a 	 D r . 	 ( r e r . 	 o e c . ) 	 f r o m 	 B o c h u m 	 U n i v e r s i t y .
0 7 	 S t e p h e n 	 S m i t h
N o n - e x e c u t i v e 	 D i r e c t o r 	 ( 5 2 )
S t e p h e n 	 S m i t h 	 i s 	 a 	 Ch a r t e r e d 	 M a n a g e m e n t 	 A c c o u n t a n t ,	
F e l l o w 	 o f 	 t h e 	 A s s o c i a t i o n 	 o f 	 C o r p o ra t e 	 T r e a s u r e r s 	 a n d	
m e m b e r 	 o f 	 t h e 	 S o c i e t y 	 o f 	 T u r n a r o u n d 	 P r o f e s s i o n a l s	
w h o , 	 s i n c e 	 1 9 9 5 , 	 h a s 	 o p e ra t e d 	 a s 	 a n 	 i n d e p e n d e n t	
c o n s u l t a n t 	 a n d 	 i n t e ri m 	 m a n a g e r 	 ( C R O / C E O / C O O / F D )	 	
o n 	 a n 	 i n t e r n a t i o n a l 	 b a s i s .
U p 	 t o 	 1 9 9 5 , 	 S t e p h e n 	 S m i t h 	 h e l d 	 v a ri o u s 	 s e n i o r 	 f i n a n c i a l	
p o s i t i o n s 	 i n 	 U K - b a s e d 	 i n t e r n a t i o n a l 	 p u b l i c 	 c o m p a n i e s ,	
i n c l u d i n g 	 6 	 y e a r s 	 a s 	 g r o u p 	 t r e a s u r e r 	 o f 	 T h e 	 R a n k	
O r g a n i s a t i o n 	 a n d 	 3 	 y e a r s 	 a s 	 g r o u p 	 f i n a n c e 	 d i r e c t o r	 	
o f 	 a 	 q u o t e d 	 h o t e l 	 c o m p a n y .
06
07
05 1 2 	 A n n u a l 	 R e p o r t 	 & 	 A c c o u n t s 	 2 0 0 5 	 A ll e r g y 	 T h e r a p e u t i c s 	 p l c 	
Shareholder 
Information
R e g i s t e r e d 	 O f f i c e
Do m i n i o n 	 W a y
W o r t h i n g
W e s t 	 S u s s e x 	 B N 1 4 	 8 S A
	
A d v i s e r s
B r o k e r 	 & 	 N o m i n a t e d 	 A d v i s e r
R o b e r t 	 W 	 B a i r d 	 L t d
M i n t 	 H o u s e
7 7 	 M a n s e l l 	 S t r e e t
L o n d o n 	 E 1 	 8 A F
A u d i t o r s
G ra n t 	 T h o r n t o n 	 U K 	 L LP
T h e 	 E x p l o r e r 	 B u i l d i n g
F l e m i n g 	 W a y
M a n o r 	 R o y a l
Cra w l e y 	 R H 1 0 	 9 G T
L a w y e r s
B e r w i n 	 L e i g h t o n 	 P a i s n e r
A d e l a i d e 	 H o u s e	
L o n d o n 	 B ri d g e	
L o n d o n 	 E C 4 R 	 9 H A
R e g i s t r a r s
Ca p i t a 	 I R G 	 p l c
T h e 	 R e g i s t r y
3 4 	 B e c k e n h a m 	 R o a d
B e c k e n h a m
K e n t 	 B R 3 	 4 T U
B a n k e r s
T h e 	 R o y a l 	 B a n k 	 o f 	 S c o t l a n d	
S o u t h 	 E a s t 	 C o r p o ra t e 	 C e n t r e
T u r n p i k e 	 H o u s e
1 2 3 	 H i g h 	 S t r e e t
Cra w l e y 	 	 R H 1 0 	 1 D Q
P u b l i c 	 R e l a t i o n s 	 A d v i s e r s
B e l l 	 P o t t i n g e r
6 t h 	 F l o o r , 	 H o l b o r n 	 G a t e
3 3 0 	 H i g h 	 H o l b o r n
L o n d o n 	 	 W C 1 V 	 7 QD
P a t e n t 	 & 	 T r a d e 	 M a r k 	 A t t o r n e y s
D 	 Y o u n g 	 & 	 C o
1 2 0 	 H o l b o r n
L o n d o n 	 E C 1 N 	 2 D Y 13 Allergy Therapeutics plc Annual Report & Accounts 2005
Directors’ Report
The directors present their annual report and the audited financial statements for the 12 months ended 30 June 2005.  
The financial statements are for Allergy Therapeutics Plc (the Company) and its subsidiary companies (together, the Group). 
In September 2004, the shares of Allergy Therapeutics (Holdings) Ltd were acquired by Allergy Therapeutics plc, by way  
of a share-for-share exchange, prior to completing a successful flotation on the AIM on 11 October 2004. 
Company statements for Allergy Therapeutics plc cover the period from incorporation, as detailed in the note below. Group 
statements have been prepared under the merger accounting basis and presented as though they had always been part of 
Allergy Therapeutics plc. 
Principal activities
The Group is engaged in the development, manufacture, marketing and sale of a range of pharmaceutical vaccine products 
designed for the immunological treatment of the allergic condition. Vaccinations take the form of allergen-specific, named-
patient-specific and standard products in injectable and sublingual presentations. The business is headquartered in Worthing, 
West Sussex, where development and manufacturing is based, whilst there are sales and marketing subsidiaries in Germany, 
Italy and Spain.
A review of the Group’s business and activities is contained in the Chairman’s Statement and Chief Executive’s Review.
Results
The loss for the year after taxation was £1,929,000 (2004: £1,218,000 profit). The results for the year are set out on page 21 
and are dealt with in more detail in the Financial Review. 
Directors and directors’ interests
The directors who held office during the period were as follows:
 Date of appointment
Ignace Goethals Non-executive chairman 8 September 2004
Keith Carter Chief executive officer 1 July 2004
Christian Grätz Market operations director 8 September 2004
Thomas Holdich R&D director  8 September 2004
Ian Postlethwaite Finance director  1 July 2004
Andrew Turnbull  Supply operations director 8 September 2004
Stephen Smith Non-executive director  8 September 2004
The dates of appointment above refer to appointment as directors of Allergy Therapeutics plc. All the directors were 
previously directors of Allergy Therapeutics (Holdings) Ltd. 
All the directors will retire and offer themselves for re-election at the forthcoming Annual General Meeting.
The directors’ interests in the shares of the Company are as follows:
                   At date of appointment:  At end of year: 
Name    Ordinary   Ordinary 
    shares Options shares Options
Ignace Goethals*    2,573,343 1,150,000 2,573,343 1,150,000
Keith Carter*    2,584,643 1,550,000 2,584,643 2,150,000
Christian Grätz    1,095,540 2,156,000 1,095,540 2,356,000
Thomas Holdich    – – – 430,000
Ian Postlethwaite     – 3,350,000 – 3,650,000
Andrew Turnbull*    211,398 3,207,100 211,398 3,507,100
Stephen Smith    – 900,000 – 900,000
* All or part are shares held in trust of which the director is a beneficiary. 14 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Directors’ Report
continued
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.
Incorporation
The Company was incorporated on 1 June 2004 as Netstamp Limited. The Company name was changed to Allergy 
Therapeutics Limited and the Company was re-registered as a public limited company on 4 October 2004. The Company  
was dormant from 1 June 2004 until 4 October 2004. From 1 June 2004 until 1 July 2004, the director of the Company was 
Instant Companies Limited.
Substantial shareholders
At 6 September 2005 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
GlaxoSmithKline plc      10,118,748 16.07
OTC Limited      5,189,776 8.24
Fidelity Investments      4,533,446 7.20
Britel      2,583,773 4.10
APIC Trustees Limited*      2,584,643 4.11
I Goethals      2,573,343 4.09
Universities Superannuation Scheme      2,187,260 3.47
Baillie Gifford & Co.      2,054,795 3.26
*The beneficiary of these shares is K Carter (director).
Changes to interest in own shares
During the year the Company allocated 1,166,524 shares out of the Employee Benefit Trust to satisfy share options that  
were exercised.
Corporate governance
The Group has established an Audit Committee and a Remuneration Committee with formally delegated duties and 
responsibilities. The chairman of each committee reports directly to the Board. 
The Audit Committee and Remuneration Committee both comprise Stephen Smith (Chairman) and Ignace Goethals. 
The Audit Committee meets at least twice a year to review a wide range of issues, including the annual financial statements 
and the Interim Statement, overseeing the objectivity and effectiveness of the auditors and regulatory compliance. The 
external auditors are formally invited to attend each meeting. The Committee reviews the Key Issues Memorandum produced 
by the external auditors. 
Full details of directors’ remuneration and a statement of the Company’s remuneration policy are set out in the Directors’ 
Remuneration Report.
Engagement of auditors for the supply of non-audit services
It is the Company’s policy that it will only engage the Company’s auditor to supply other professional services to the Company and 
its subsidiary undertakings if it is satisfied that all the usual conditions of engagement and benchmarks are met. Any agreement to 
purchase services costing more than £10,000 per engagement must have the prior approval of the Audit Committee. 15 Allergy Therapeutics plc Annual Report & Accounts 2005
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. During the 
year the Company established an internal audit function, 
reporting directly to the Audit Committee, which has carried 
out reviews of the policies and controls of the subsidiaries 
in Germany, Italy and Spain. A full review of policies and 
controls in the UK and follow-up reviews of the overseas 
subsidiaries are scheduled to take place during the financial 
year ending 30 June 2006.
International Financial Reporting Standards (‘IFRS’)
Reporting under IFRS is due to be mandatory for the Group for 
the year ending 30 June 2008 onwards, although consideration 
will also need to be given to the 2007 results due to the 
requirement for comparatives on the implementation of 
IFRS. A project team will be set up to manage the Group’s 
transition from UK GAAP to IFRS and to ensure successful 
implementation within the required timeframe.
Research and development
The Group will continue its policy of investment in research 
and development in order to improve its competitive position 
in the market.
Going concern
After making enquiries, the directors continue to believe 
that the Group will have adequate resources to continue in 
operational existence and accordingly have applied the going 
concern principle in drawing up the financial statements.
Market value of land and buildings
In the opinion of the directors, the market value of the land 
and buildings of the Group is in excess of the current book 
values but a recent valuation has not been sought.
Charitable and political contributions
The Company made no political or charitable contributions 
during the year.
Creditors’ payment policy and practice
The Group agrees payment terms with suppliers when it 
enters into contracts for the purchase of goods or services 
and seeks to abide by those terms when it is satisfied 
that the supplier has provided the goods or services in 
accordance with the agreed terms and conditions. 
The number of trade creditor days at 30 June 2005 was  
52 days (2004: 51 days). 
Employment policies
Equal opportunities
The Group is committed to providing equal opportunities 
in employment. All job applicants and employees shall 
receive equal treatment regardless of sex, race, colour, and 
nationality or ethnic origin.
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 by briefings through line 
management. In the UK, employees have access to Company 
information on the intranet. Information about the Group is 
also available on the Internet. 
The Group’s commitment to the performance management 
of its staff encourages both individuals and the Group to 
recognise individuals’ strengths and development potential 
and the remuneration programme is based on merit. 16 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Statement of directors’ responsibilities
Company law in the UK requires the directors to prepare 
financial statements for each financial period which give  
a true and fair view of the state of affairs of the Group  
and Company and of the profit or loss of the Group for  
that period. In preparing those financial statements, the 
directors are required to:
select suitable accounting policies and then apply them 
consistently;
make judgements and estimates that are reasonable and 
prudent;
state whether applicable 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 Group 
will continue in business.
The directors are responsible for keeping proper accounting 
records, for safeguarding the assets of the Group and for 
taking reasonable steps for the prevention and detection  
of fraud and other irregularities. 
The directors are responsible for ensuring that the directors’ 
report and other information included in the annual report is 
prepared in accordance with United Kingdom company law.
The directors are responsible for ensuring compliance with 
the AIM rules.
The maintenance and integrity of the Company’s website  
is the responsibility of the directors; the work carried out  
by the auditors does not involve consideration of these 
matters and, accordingly, the auditors accept no responsibility 
for any changes that may have occurred to the financial 
statements since they were initially presented on the 
website. Legislation in the United Kingdom governing the 
preparation and dissemination of the financial statements 
may differ from legislation in other jurisdictions.
Auditors
Grant Thornton UK LLP offer themselves for reappointment 
as auditors in accordance with section 385 of the Companies 
Act 1985. A resolution for their reappointment is to be 
proposed at the forthcoming Annual General Meeting.
By order of the Board on 12 September 2005,
Ian Postlethwaite
Company Secretary
•
•
•
•
Directors’ Report
continued 17 Allergy Therapeutics plc Annual Report & Accounts 2005
The Remuneration Committee (unaudited)
The Remuneration Committee was formed on 8 October 
2004 and comprises Steve Smith (Chairman) and Ignace 
Goethals. A remuneration committee was in place prior to 
8 October 2004 for the Group’s former holding company. 
The Committee held 2 meetings during the past financial 
year which were also attended by the Human Resources 
Manager. The principle purpose of the Committee is to agree 
the directors’ salary increases, annual bonuses and any 
changes in benefits. In addition, the Committee also agrees 
the share-related compensation for the directors and other 
executive management, approves performance-related pay 
schemes of the Group and other executive compensation 
matters. For the purpose of reaching appropriate decisions 
the Committee has used information from the Alan Jones 
& Associates ‘Pharmaceutical Salary Survey’, the Halliwell 
Consulting ‘Executive Pay in the Pharmaceuticals & Bio 
Tech Sector’ report and a sample taken from AIM listed 
pharmaceutical companies of similar size and value (the 
‘Comparator Group’).
Remuneration policy (unaudited)
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 five elements:
(i) Basic salary
Basic salary reflects the market rate for each position 
and the individual director’s experience and value to the 
business. Salaries are reviewed annually as at 1 October, 
taking into account personal performance, and are 
benchmarked against the Comparator Group.
(ii) Taxable benefits
Taxable benefits represent the provision of a car allowance 
and private medical insurance.
Directors’ Remuneration Report
(iii) Share options
Executive share options have been granted to directors and 
senior management under the Allergy Therapeutics plc 2005 
Executive Share Option Plan and are exercisable between 
3 and 10 years from the date of grant, subject to continued 
employment and the satisfaction of performance conditions. 
The number of Executive share options were approved on 
the basis of 2 times annual salary for the Chief Executive 
and, for all other executive directors, 1½ times annual salary. 
The share options granted to individual executive directors  
to date are disclosed later in this report and include grants 
made in prior years under previous approved and unapproved 
option schemes. Share options previously granted by Allergy 
Therapeutics (Holdings) Ltd were surrendered on 5 October 
2004 for share options in Allergy Therapeutics plc, on 
substantially the same terms.
 
(iv) Bonus
In the case of the executive team the Company operates 
a performance related cash bonus based upon individual 
performance and achievement of personal and corporate 
objectives. The performance-related bonus for the year 
ending 30 June 2005 ranged between 25% and 40% of basic 
salary. Annual bonus payments are capped under service 
contracts at 40% for K Carter and 30% for all other directors 
except C Grätz, whose bonus is uncapped. 
 
(v) Pension arrangements
The UK Company operates a Group Personal Pension Scheme 
and currently makes pension contributions equal to 10% of 
salary for executive directors, with the exception of K Carter 
for whom the Company contributes 13% of salary. 
C Grätz is a member of Bencard Allergie’s pension scheme, 
which provides a defined benefit on retirement. Bencard 
Allergie’s contributions are based on actuarial reports provided 
by Swiss Life Pension Management. The pension liability is 
insured through a reinsurance contract with Swiss Life. 18 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Directors’ Remuneration Report
continued
Service contracts (unaudited)
Executive directors     Date of contract*  Notice period
Keith Carter    1 November 2003  6 months
Ian Postlethwaite    7 May 2002  12 months
Christian Grätz    1 April 2001  12 months
Andrew Turnbull    1 September 2003  6 months
Tom Holdich (start date 02/08/04)    2 August 2004  6 months
*The above dates refer to service contracts with Allergy Therapeutics (Holdings) Ltd and, for Christian Grätz, with Bencard Allergie GmbH. All the service 
contracts, except that of Christian Grätz, were amended on 5 October 2004 to reflect the change of employer to Allergy Therapeutics plc.
Non-executive directors    Date of contract  Notice period
Ignace Goethals    8 September 2004  3 months
Stephen Smith    8 September 2004  3 months
The above contracts replaced previous service contracts in respect of non-executive director roles in the Group’s former 
holding company.
Directors remuneration (audited)
Details of remuneration of those who served as directors during the year are set out below.
  Basic   Taxable Pension 
  salary Bonus benefits contributions Fees Total 
  £ £ £ £ £ £
Executive directors
Keith Carter  144,325 51,840 10,968 19,500 – 226,633
Ian Postlethwaite  105,308 20,943 10,968 10,531 – 147,750
Christian Grätz  126,608 23,426 12,833 23,148 – 186,015
Andrew Turnbull  87,187 13,895 10,814 8,719 – 120,615
Tom Holdich  109,416 30,250 10,054 10,942 – 160,662
Non-executive directors 
Ignace Goethals  – – – – 24,000 24,000
Steve Smith  – – – – 12,000 12,000
Totals  572,844 140,354 55,637 72,840 36,000 877,675
The bonuses are stated after adjustment with respect to prior year, which reduces the total bonus disclosure by £29,000. 19 Allergy Therapeutics plc Annual Report & Accounts 2005
Directors’ share options (audited)
  Options  Options Options 
  held at  granted in held at Subscription Exercise Expiry 
  1 July 2004 the year 30 June 2005 price (pence) date from date
Executive directors
Keith Carter  350,000 – 350,000 120.0 31/07/2002
1
 31/07/2011
  750,000 – 750,000 5.0 18/12/2002
1
 18/12/2012
  450,000 – 450,000 45.0 26/02/2005
1
 26/02/2014
  – *99,601 99,601 100.4 08/03/2008 08/03/2015
  – 500,399 500,399 100.4 08/03/2008 08/03/2015
Ian Postlethwaite  400,000 – 400,000 30.0 03/06/2002 03/06/2012
  1,000,000 – 1,000,000 0.1 02/10/2002 02/10/2012
  1,500,000 – 1,500,000 5.0 17/12/2002
1
 17/12/2012
  450,000 – 450,000 45.0 26/02/2005
1
 26/02/2014
  – *24,900 24,900 100.4 03/03/2008 08/03/2015
  – 275,100 275,100 100.4 08/03/2008 08/03/2015
Christian Grätz  6,000 – 6,000 0.1 04/10/2004 20/10/2010
  200,000 – 200,000 120.0 31/07/2002
1
 31/07/2011
  1,500,000 – 1,500,000 5.0 18/12/2002
1
 18/12/2012
  450,000 – 450,000 45.0 26/02/2005
1
 26/02/2014
  – 200,000 200,000 100.4 08/03/2008 08/03/2015
Andrew Turnbull  100 – 100 0.1 04/10/2004 22/12/2008
  1,000 – 1,000 0.1 04/10/2004 01/10/2009
  6,000 – 6,000 0.1 04/10/2004 01/10/2010
  50,000 – 50,000 0.1 04/10/2004 02/01/2011
  200,000 – 200,000 120.0 31/07/2002
1
 31/07/2011
  1,000,000 – 1,000,000 0.1 02/10/2002 02/10/2012
  1,500,000 – 1,500,000 5.0 17/12/2002
1
 17/12/2012
  450,000 – 450,000 45.0 26/02/2005
1
 26/02/2014
  – *24,900 24,900 100.4 08/03/2008 08/03/2015
  – 275,100 275,100 100.4 08/03/2008 08/03/2015
Tom Holdich  – *222,222 222,222 45.0 02/08/2005
1
 02/08/2014
  – 7,778 7,778 45.0 02/08/2005
1
 02/08/2014
  – 200,000 200,000 100.4 08/03/2008 08/03/2015
Non-executive directors
Ignace Goethals  1,000,000 – 1,000,000 5.0 18/12/2002
1
 18/12/2012
  150,000 – 150,000 45.0 26/02/2005
1
 26/02/2014
Stephen Smith  750,000 – 750,000 5.0 18/12/2002
1
 18/12/2012
  150,000 – 150,000 45.0 26/02/2005
1
 26/02/2014
Totals   12,313,100  1,830,000 14,143,100
* Inland Revenue approved scheme
1
 One third of share options granted are exercisable from this date, one third from 12 months after this date and one third from 24 months after this date.
At 30 June 2005 the market value of shares was 87.5p per share. The range of values during the period from 11 October 
2004 to 30 June 2005 was 74.5p to 125.5p per share.
Share options previously granted by Allergy Therapeutics (Holdings) Ltd were surrendered on 5 October 2004 for share 
options in Allergy Therapeutics plc, on substantially the same terms. 20 Annual Report & Accounts 2005 Allergy Therapeutics plc
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We have audited the financial statements of Allergy 
Therapeutics plc for the year ended 30 June 2005 which 
comprise the consolidated profit and loss account, the 
consolidated and company balance sheets, the consolidated 
cash flow statement, the consolidated statement of total 
recognised gains and losses and notes 1 to 28. These 
financial statements have been prepared under the 
accounting policies set out therein. We have also audited  
the information in the directors’ remuneration report that  
is described as having been audited.
This report is made solely to the Company’s members, as  
a body, in accordance with section 235 of the Companies  
Act 1985. Our audit work has been undertaken so that we 
might state to the Company’s members those matters we 
are required to state to them in an auditors’ 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 opinion we  
have formed.
Respective responsibilities of the directors and auditors
It is the directors’ responsibilities for preparing the annual 
report and the financial statements in accordance with 
applicable law and United Kingdom accounting standards  
are set out in the statement of directors’ responsibilities. 
Our responsibility is to audit the financial statements in 
accordance with relevant legal and regulatory requirements 
and United Kingdom auditing standards.
We report to you our opinion as to whether the financial 
statements give a true and fair view and are properly 
prepared in accordance with the Companies Act 1985. We 
also report to you if, in our opinion, the directors’ report is 
not consistent with the financial statements, if the Company 
has not kept proper accounting records, if we have not 
received all the information and explanations we require 
for our audit, or if information specified by law regarding 
directors’ remuneration and transactions with the Company 
is not disclosed.
We read other information contained in the annual report, and 
consider whether it is consistent with the audited financial 
statements. This other information comprises the chairman’s 
statement, chief executive’s review, financial review, directors’ 
report and the unaudited part of the directors’ remuneration 
report. We consider the implications for our report if we 
become aware of any apparent misstatements or material 
inconsistencies with the financial statements. Our 
responsibilities do not extend to any other information.
Basis of opinion
We conducted our audit in accordance with United Kingdom 
auditing standards issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence 
relevant to the amounts and disclosures in the financial 
statements. It also includes an assessment of the significant 
estimates and judgements made by the directors in the 
preparation of the financial statements, and of whether  
the accounting policies are appropriate to the circumstances, 
consistently applied and adequately disclosed. 
We planned and performed our audit so as to obtain all  
the information and explanations which we considered 
necessary in order to provide us with sufficient evidence  
to give reasonable assurance that the financial statements 
are free from material misstatement, whether caused by 
fraud or other irregularity or error. In forming our opinion  
we also evaluated the overall adequacy of the presentation 
of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair 
view of the state of affairs of the Group and the Company 
as at 30 June 2005 and of the loss of the Group for the year 
then ended and have been properly prepared in accordance 
with the Companies Act 1985.
Grant Thornton UK LLP
Registered Auditors and Chartered Accountants
Gatwick
12 September 2005
Report of the Independent Auditors  
to the Members of Allergy Therapeutics plc  21 Allergy Therapeutics plc Annual Report & Accounts 2005
    Year ended Year ended Year ended Year ended 
    30 June 2005 30 June 2005 30 June 2004 30 June 2004 
   Note £’000 £’000 £’000 £’000
Turnover   2  20,606  18,001
     
Cost of sales     (4,853)  (5,513)
Gross profit     15,753  12,488
     
Distribution costs     (8,012)  (6,569)
 Administrative expenses – other    (4,303)  (4,335) 
 Research and development costs    (5,620)  (451) 
 Exceptional costs   4 (614)  – 
Administrative expenses     (10,537)  (4,786)
Other operating income     378  423
Operating (loss)/profit     (2,418)  1,556
     
Interest receivable and similar income    531  60 
Interest payable on loans and overdrafts    (42)  (26) 
     489  34
(Loss)/profit on ordinary activities before tax  3  (1,929)  1,590
Tax on loss/profit on ordinary activities   7  –  (372) 
Retained (loss)/profit for the financial year  21,22      (1,929)  1,218
Basic (loss)/earnings per share   9  (3.4p)  3.0p
Diluted (loss)/earnings per share   9  (3.4p)  2.5p
All amounts relate to continuing activities.
Consolidated Profit and Loss Account
for the year ended 30 June 2005 22 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Consolidated Balance Sheet
at 30 June 2005
      30 June 2005 30 June 2004 
     Note £’000 £’000
Fixed assets     
Intangible assets     10  
  Goodwill      2,617 2,945
  Other intangible assets      951 1,072
      3,568 4,017
Tangible assets     11 2,111 1,650
      5,679 5,667
Current assets     
Stocks     13 2,741 1,825
Debtors: amounts falling due within one year    14 3,160 2,062
Debtors: amounts falling due after one year    14 – 223
     
Cash at bank and in hand      15,080 1,457
      20,981 5,567
     
Creditors: amounts falling due within one year    15 (6,121) (3,277)
Net current assets      14,860 2,290
Total assets less current liabilities      20,539 7,957
     
Creditors: amounts falling due after one year    16 (455) (881) 
Net assets      20,084 7,076
Capital and reserves     
Called up share capital      20 73 51
Share premium account     21 14,924 –
Other reserves – shares issued by subsidiary    21 40,128 40,128
Other reserves – shares held in Employee Benefit Trust    21 (322) (373)
Profit and loss account     21 (34,719) (32,730) 
Shareholders’ funds – equity     22 20,084 7,076
These financial statements were approved by the Board of directors on 12 September 2005 and were signed  
on its behalf by:
K Carter     I Postlethwaite
Chief Executive Officer   Finance Director 23 Allergy Therapeutics plc Annual Report & Accounts 2005
       30 June 2005 
      Note £’000
Fixed assets     
Investments      12 –
Current assets     
Debtors: amounts falling due within one year     14 6
Creditors: amounts falling due within one year     15 (239)
Net current liabilities       (233)
     
Total assets less current liabilities       (233)
Net liabilities       (233)
Capital and reserves     
Called up share capital       20 73
Share premium      21 14,924
Other reserve – shares held in Employee Benefit Trust     21 (322)
Profit and loss account      21 (14,908)
Shareholders’ funds/(deficiency) – equity      (233)
These financial statements were approved by the Board of directors on 12 September 2005 and were signed  
on its behalf by:
K Carter     I Postlethwaite
Chief Executive Officer   Finance Director
Company Balance Sheet
at 30 June 2005 24 Annual Report & Accounts 2005 Allergy Therapeutics plc
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    Year to Year to Year to Year to 
    30 June 2005 30 June 2005 30 June 2004 30 June 2004 
   Note £’000 £’000 £’000 £’000
Cash (outflow)/inflow from operating activities  23  (15)  1,508
     
Returns on investment and servicing of finance     
     Interest received    531  60 
     Interest paid    (42)  (26) 
     489  34
Taxation   7  –  364
     
Capital expenditure and financial investment     
     Purchase of tangible fixed assets   11  (903)  (760)
Cash (outflow)/inflow before financing     (429)  1,146
     
Acquisitions and disposals     
     Deferred consideration     –  (308) 
     
Financing   24    
     Gross funds raised on issue of shares    16,000  – 
     Bank loans repaid    (945)  (305) 
     Sale/(purchase) of EBT shares    51  (373) 
     Premium on shares issued by subsidiary   –  30 
     Expenses paid in connection with issue of shares   (1,054)  – 
     14,052  (648)
Increase in cash in year     13,623  190
Consolidated Cash Flow Statement
for the year ended 30 June 2005
Reconciliation of Net Cash Flow to Movement in Net Funds
      Year to Year to 
      30 June 2005 30 June 2004 
     Note £’000 £’000
Increase in cash in the year      13,623 190
Net loans repaid      945 305
Movement in net funds in year     25 14,568 495
Net funds at beginning of year      512 17 
Net funds at end of year     25 15,080 512 25 Allergy Therapeutics plc Annual Report & Accounts 2005
Consolidated Statement of Total Recognised Gains and Losses
for the year ended 30 June 2005   
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
(Loss)/profit for the financial year      (1,929) 1,218
  
Currency translation differences on foreign currency net investment    (60) 40 
Total recognised gains and losses relating to the year     (1,989) 1,258
  26 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Notes to the Financial Statements
1 Accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in 
relation to the Group’s financial statements and have remained unchanged from the prior year.
Basis of preparation
These financial statements have been prepared under the historical convention of accounting and in accordance with 
applicable accounting standards.
The accounts are prepared on a going concern basis.
Basis of consolidation
The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings made 
up to 30 June 2005.  
On 14 September 2004 Netstamp Ltd (later to become Allergy Therapeutics plc) acquired, by way of a share-for-share 
exchange, the whole of the issued share capital of Allergy Therapeutics (Holdings) Limited (‘ATHL’). Accordingly, as permitted 
by Financial Reporting Standard 6, merger accounting has been applied for this combination as if the Group, as currently 
constituted, has been in place throughout the whole period covered by these financial statements.
The Group profit and loss account for the financial year and the comparatives for the Group balance sheet and Group  
profit and loss account have been presented as though they had always been part of Allergy Therapeutics plc, despite  
the fact that the Company was only incorporated on 1 June 2004, in order to compare meaningfully the performance  
of the underlying Group.
The share capital, share premium and shares held in EBT reserve is that of the Company in 2005. The share capital and 
shares held in EBT reserve is that of ATHL in 2004. The shares issued by subsidiary reserve relates to the premium on shares 
previously issued by ATHL. The profit and loss reserve includes all profits and losses for the Group formerly headed by ATHL 
prior to its merger with the Company.
Goodwill
Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable 
net assets acquired) arising on consolidation in respect of acquisitions is capitalised. Positive goodwill is amortised to nil by 
equal instalments over its estimated useful life. 
Depreciation
Depreciation has been provided on a straight line basis in order to write off the cost less the estimated residual value of 
depreciable fixed assets over their estimated useful lives.
The rates applicable are:
Plant and machinery       5–10 years 
Fixtures and fittings       5 years
Motor vehicles       4 years
Computer equipment       3–7 years 
Buildings       10 years
Operating leases
Costs in respect of operating leases are charged on a straight line basis over the lease term. 
Intangible fixed assets and amortisation
Non-competing know-how is amortised over 4 years reflecting its estimated useful life to the Group. Acquired licences, 
patents and manufacturing know-how are capitalised and amortised over their estimated useful economic lives (15 years). 
Any development costs which are incurred by the Group and are associated with an acquired licence, patent and know-how 
are written off to the profit and loss account when incurred.
Pension
The Group operates a private personal pension for employees in the UK and Germany. The assets of the UK scheme are held 
separately from those of the Group in an independently administered fund. The amount charged against profits represents 
the contributions payable to the scheme in respect of the accounting period. The pension liability in Germany is ‘insured’ 
through a reinsurance contract with an independent insurance company. 27 Allergy Therapeutics plc Annual Report & Accounts 2005
1 Accounting policies continued
Stock valuation
Stocks have been valued at the lower of cost and net realisable value. Costs include materials, direct labour and an 
appropriate proportion of manufacturing overheads based on normal levels of activity.
Research and development
Laboratory equipment used for research and development is capitalised as plant and equipment and written off in 
accordance with the Group’s depreciation policy. Other research and development expenditures are written off in the  
year when occurred.
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.
The assets and liabilities of overseas subsidiary undertakings are translated at the closing exchange rates. Profit and loss 
accounts of such undertakings are consolidated at the average rates of exchange during the period. Gains and losses arising 
on these translations are taken to reserves.
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. 
Turnover
Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to third party 
customers, net of statutory rebates paid in Germany.
Revenue recognition
Revenue is recognised when contractual obligations are met and a right to consideration exists. Where a right to 
consideration is dependent on the occurrence of a critical event (i.e. when the Group has fulfilled all relevant conditions  
to be entitled to the revenue), such as for milestone payments, revenue is not recognised until that event occurs.
Cash and liquid resources
Cash, for the purpose of the cash flow statement, comprises cash in hand and deposits repayable on demand, less overdrafts 
payable on demand.
Liquid resources are current asset investments which are disposable without curtailing or disrupting the business and are 
either readily convertible into known amounts of cash at or close to their carrying values or traded in an active market.
Employee Benefit Trust (EBT)
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 shareholders funds on  
the balance sheet within ‘other reserve’ 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.
Investments
Investments are included at cost less amounts written off. 28 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Notes to the Financial Statements
continued
2 Turnover
Turnover is attributable to the principal activities of the Group, as defined in the Directors’ Report. An analysis of turnover  
by geographical market and by country of origin is given below.
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
By geographical location   
Germany      14,175 11,681
Rest of Europe      4,714 5,332
North America      1,371 680
Asia      346 308 
      20,606 18,001
By country of origin  
Germany      14,175 11,715
Rest of Europe      3,481 2,917
UK      2,950 3,369 
      20,606 18,001
3 Loss/profit on ordinary activities before tax
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
Loss/profit on ordinary activities before tax is stated after charging: 
Auditors’ remuneration:  
 Group audit      62 51
 Company audit      7 –
 Non-audit fees paid to the auditor in respect of other services:  
 Tax compliance and assurance      26 32
 Review of interim statements      5 –
 Transfer pricing and international tax projects     60 –
Depreciation of tangible assets      436 319
Amortisation of intangible assets      448 333
Research and development       5,620 451
Operating lease rentals – plant and machinery     7 7
 – other      625 312
Foreign currency exchange gains      (262) (6)
In addition to the above, an amount of £97,000 was paid to the auditors for work as reporting accountants in connection with 
the Company’s admission to AIM and the issue of shares. The costs have been offset against the share premium account as 
part of the cost of issuing shares in the year. 29 Allergy Therapeutics plc Annual Report & Accounts 2005
4 Exceptional items
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
Cost of consultancy services provided in 2000, payable on an initial public offering (IPO) or ‘exit’  614 –
Consultancy services included assistance with the development of a business strategy regarding entry into the US market. 
This was reported as a contingent liability, as defined by FRS 12, in the financial statements for the year ended 30 June 2004.  
 
5 Remuneration of directors
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
Directors’ emoluments      805 648
Pension contributions      73 52 
      878 700
Directors’ severance costs (included within directors’ emoluments)    – 4
Emoluments of highest paid director      207 156
Group contribution to pension plan:  
Pension contributions paid by the Group for highest paid director    20 21
The number of directors for whom pension payments are made    5 4
Number of directors including the highest paid director who exercised options in the year  – 2
6 Staff numbers and costs
The average number of full-time equivalent persons employed by the Group (including directors) during the year, analysed by 
category was as follows:
 Number of employees
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
R&D, Marketing and Administration      81 77
Sales      52 49
Production      96 99 
      229 225
The aggregate payroll costs for these persons were as follows:
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
Aggregate wages and salaries      7,292 6,332
Social security costs      1,168 961
Other pension costs       382 267 
      8,842 7,560
The average number of employees involved in pension schemes across the Group for 2005 was 127 (2004: 131). 30 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Notes to the Financial Statements
continued
7 Tax on (loss)/profit on ordinary activities
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
The taxation credit/(charge) is made up as follows:
UK corporation tax at 30%      – –
Adjustment in respect of prior years      – 364
Deferred tax (see note 19)      – (736)
      – (372)
Current tax reconciliation:
 
      Year to Year to 
      30 June 2005 30 June 2004 
      £’000 £’000
(Loss)/profit before tax      (1,929) 1,590
Tax at standard rate of 30% on profit/(loss) for year     (579) 477
Expenses not deductible for tax purposes      99 83
Capital allowances in excess of depreciation     (104) (117)
Other adjustments not taxable      – (172)
Overseas adjustments not taxable      (60) (383)
Utilisation of tax losses      (419) (325)
Tax losses not utilised      1,824 494
Allowances for R&D expenditure      (593) (57)
Relief for shares acquired by employees and directors     (168) –
Surrender of tax losses      – 364
Current tax credit        – 364
 
Unrelieved group tax losses of £8,900,000 (2004: £9,100,000) remain available to offset against future taxable trading profits.
8 Loss for the financial period
The parent company has taken advantage of section 230 of the Companies Act 1985 and has not included its own profit and 
loss account in these financial statements. The parent company’s loss for the period since incorporation was £14,908,000.
9 (Loss)/earnings per share
      Year to Year to 
      30 June 2005 30 June 2004
(Loss)/earnings for the year (£’000)      (1,929) 1,218
   
Weighted number of shares in issue      57,471,180 40,935,583
Diluted weighted number of shares in issue     n/a  49,294,066
   
Basic (loss)/earnings per share (pence)      (3.4) 3.0
Diluted (loss)/earnings per share (pence)      (3.4) 2.5 31 Allergy Therapeutics plc Annual Report & Accounts 2005
10 Intangible fixed assets – Group
    Manufacturing  Non-competing Other Total at 
   Goodwill know-how know-how intangibles 30 June 2005 
   £’000 £’000 £’000 £’000 £’000
Cost     
Cost brought forward   4,908 1,000 2,966 953 9,827
Exchange difference   (2) – (3) – (5)
Balance carried forward   4,906 1,000 2,963 953 9,822
Amortisation     
Balance brought forward   1,963 401 2,966 480 5,810
Charge for year   327 67 – 54   448
Exchange difference   (1) – (3) – (4)
Balance carried forward   2,289 468 2,963 534 6,254
Net book value
     
At 30 June 2005   2,617 532 – 419 3,568
At 30 June 2004   2,945 599 – 473 4,017 
The fair values of intangible assets acquired as part of a business are determined by the realisable market value. The 
directors consider each acquisition separately for the purpose of determining the amortisation period of any goodwill and 
other intangible assets that arise. The following sets out the periods over which intangible assets are amortised and reasons 
for the periods chosen:
Goodwill, manufacturing know-how and other intangible assets arising on the acquisition of Allergy Therapeutics Limited 
and Bencard Allergie GmbH in June 1998 have been amortised over 15 years. The directors have estimated that this is the 
useful economic life of the assets, reflecting the expected financial benefits.
Non-competing know-how has been amortised over 4 years in the UK reflecting its estimated useful life to the Company.
‘Other intangibles’ includes trademarks and acquisition costs.
•
• 32 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Notes to the Financial Statements
continued
11 Tangible fixed assets – Group
      Freehold 
  Plant and Fixtures and  Motor Computer land and Total at 
  machinery fittings vehicles equipment buildings 30 June 2005 
  £’000 £’000 £’000 £’000 £’000 £’000
Cost      
Balance brought forward  1,979 457 8 2,596 262 5,302
Additions  366 286 – 251 – 903
Disposals  (63) – – (4) – (67)
Exchange difference  – – – (1) – (1) 
Balance carried forward  2,282 743 8 2,842 262 6,137
Depreciation      
Balance brought forward  1,186 313 5 2,002 146 3,652
Charge for period  127 73 1 204 31 436
Disposals  (62) – – – – (62) 
Balance carried forward  1,251 386 6 2,206 177 4,026
Net book value 
At 30 June 2005  1,031 357 2 636 85 2,111
At 30 June 2004  793 144 3 594 116 1,650
12 Investments – Company
       Shares in  
       subsidiary 
       undertaking 
       £’000
Cost
 
Additions and carried forward       51
Provision
 
Provision for year and carried forward       (51)              
Net book value
 
At 30 June 2005       – 33 Allergy Therapeutics plc Annual Report & Accounts 2005
12 Investments – Company continued
At 30 June 2005 the Company’s subsidiary undertakings were:
 Country of  Percentage  Class of 
Subsidiary undertaking incorporation  Principal activity of shares held  shares held
Allergy Therapeutics (Holdings) Ltd UK Holding company 100% ordinary  
    and deferred
Allergy Therapeutics (UK) Ltd UK Manufacture and sale of  100% ordinary 
  pharmaceutical products
Allergy Therapeutics Development Ltd UK Dormant 100% ordinary
Bencard Allergie GmbH Germany Sale of pharmaceutical products 100% ordinary
Allergy Therapeutics Italia s.r.l. Italy Sale of pharmaceutical products 100% ordinary
Allergy Therapeutics Iberica S.L. Spain Sale of pharmaceutical products 100% ordinary
Allergy Therapeutics (Canada) Ltd Canada Dormant 100% ordinary
Allergy Therapeutics (Bermuda) Ltd Bermuda Dormant 100% ordinary
Allergy Therapeutics (Holdings) Ltd is owned directly by Allergy Therapeutics plc. All other subsidiary undertakings are owned 
by Allergy Therapeutics (Holdings) Ltd. 
13 Stocks
 Group 
      30 June 2005 30 June 2004 
      £’000 £’000
Raw materials and consumables      961 591
Work in progress      1,252 658
Finished goods      528 576 
      2,741 1,825
There is no material difference between the value of stock above and its replacement cost.
14 Debtors
 Group Company
      30 June 2005 30 June 2004 30 June 2005 
     £’000 £’000 £’000
Amounts falling due within one year    
Trade debtors     2,206 1,405 –
Taxation and social security     55 52 –
Prepayments and accrued income     348 222 –
Other debtors     551 383 6 
     3,160 2,062 6
 Group 
      30 June 2005 30 June 2004 
      £’000 £’000
Amounts falling due after one year
Trade debtors      – 223 
      – 223 34 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Notes to the Financial Statements
continued
15 Creditors: amounts falling due within one year
 Group Company
      30 June 2005 30 June 2004 30 June 2005 
     £’000 £’000 £’000
Bank loan     – 278 –
Trade creditors     1,478 827 –
Taxation and social security     372 365 –
Other creditors     485 – –
Accruals and deferred income     3,786 1,807 239 
     6,121 3,277 239
The increase in accruals and deferred income relates primarily to increased development expenditure.
16 Creditors: amounts falling due after more than one year
 Group 
      30 June 2005 30 June 2004 
      £’000 £’000
Bank loan      – 667
Other long term creditors      455 214 
      455 881
17 Analysis of debt
 Group 
      30 June 2005 30 June 2004 
      £’000 £’000
Debt can be analysed as falling due:  
     Within one year      – 278
     In one to five years      – 667 
      – 945
The bank loan was secured by a fixed and floating charge over the assets of Allergy Therapeutics (UK) Ltd. The loan was fully 
repaid in November 2004.
18 Financial instruments and derivatives
The Group uses financial instruments comprising borrowings, cash and various items, such as trade debtors and trade 
creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for  
the Group’s operations. 
The Group also enters into derivatives transactions such as forward foreign currency contracts. The purpose of such 
transactions is to manage the currency risks arising from the Group’s operations and its sources of finance.
The main risk arising from the Group financial instruments is foreign currency risk while to a lesser extent there is interest 
rate risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and they are summarised 
below. These policies have remained unchanged from previous years.
All transactions in derivatives, principally forward foreign currency contracts, are undertaken to manage the risks arising  
from underlying business activities and no transactions of a speculative nature are undertaken. 
It is, and has been in previous years, the Group policy that no trading in financial instruments shall be undertaken. 35 Allergy Therapeutics plc Annual Report & Accounts 2005
18 Financial instruments and derivatives continued
Short-term debtors and creditors
Short-term debtors and creditors have been excluded from all the following disclosures, other than the currency risk disclosures.
Currency risk
The Group does not hedge its exposure of foreign investments held in foreign currencies. 
The Group is exposed to translation and transaction foreign exchange risk. In relation to translation risk the repatriation  
of assets is insignificant and the only exposure is revaluation of the assets at year end for accounting purposes. Therefore, 
Group policy does not deem it necessary to cover this risk. 
Transaction exposures are hedged, mainly using the forward hedge market. The Group seeks to hedge its exposures using  
a variety of financial instruments, with the objective of minimising fluctuations in exchange rates on future transactions and 
cash flows. 
The majority of the Group’s revenue is denominated in euros, whilst a material element of the cost base is denominated  
in sterling. The Group policy is to eliminate approximately 50% of currency exposures on a rolling 12 month basis through  
the use of forward currency contracts.
Gains and losses on hedges
The Group policy is to hedge exposures to currency risk. The table below shows the extent to which the Group has 
unrecognised and/or deferred gains and losses in respect of financial instruments used as hedges at the beginning  
and end of the year. The table also shows the amount of gains and losses which have been included in the profit and  
loss account for the year and those that are expected to be recognised in future profit and loss accounts.
       Total net 
     Gains Losses gains/(losses) 
     £’000 £’000 £’000
Unrecognised gains and losses on hedges at 1 July 2004    149 – 149
Gains and losses arising in previous years that were recognised in 2004/05  (149) – (149)
Gains and losses arising in 2004/05 that were not recognised in 2004/05   207 – 207
Unrecognised gains and losses on hedges at 30 June 2005   207 – 207
Of which:    
Gains and losses expected to be recognised in 2005/06    207 – 207
Interest rate risk
The directors do not consider that the business is exposed to material interest rate risk. The Group finances its operations 
through cash reserves. The cash reserves held by the Group since October 2004 have negated the need to use significant 
interest bearing short-term borrowings, whereas previously short-term borrowings were held. 36 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Notes to the Financial Statements
continued
18 Financial instruments and derivatives continued
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest 
cash assets safely and profitably. Surplus cash is invested in various deposit accounts to spread the risk and to generate a 
higher return of interest.
The amounts below show the monetary assets held by the Group in currencies other than sterling.
 Group 
      30 June 2005 30 June 2004 
Currency      £’000 £’000
Euro      883 541
US dollar      48 23
Canadian dollar      25 – 
      956 564
Borrowing facilities
The Group has undrawn committed borrowing facilities of €362,000 (£242,000).
19 Deferred taxation
 Group 
      30 June 2005 30 June 2004 
      £’000 £’000
The movement on deferred tax asset in the financial statement is set out below:  
Provision brought forward      – 736
(Charged)/credited to the profit and loss account     – (736) 
Provision carried forward      – –
Deferred tax assets have not been recognised due to the uncertainty of future profits. 
20 Called up share capital
      30 June 2005  30 June 2004 
      £’000 £’000
Authorised  
Equity: 790,151,667 ordinary shares of 0.1p each     790 790
Equity: 9,848,333 deferred shares of 0.1p each     10 10 
      800 800
Allotted, called up and fully paid   
Equity: 62,950,632 ordinary shares of 0.1p each (2004: 41,032,824)    63 41
Equity: 9,848,333 deferred shares of 0.1p each     10 10 
      73 51
On 11 October 2004, 21,917,808 ordinary shares of 0.1p each were issued for cash consideration of £16,000,000.  
The difference between the consideration of £16,000,000 and the aggregate nominal value of £22,000 has been  
credited to the share premium account. 
The deferred shares have no voting rights or dividend rights attached to them.  37 Allergy Therapeutics plc Annual Report & Accounts 2005
20 Called up share capital continued
Share options
Details of the share options over the Company’s ordinary shares are as follows:
       Exercise Exercise Exercise 
At start of year Granted during year Exercised Lapsed in year At end of year price  date from date to
 9,600 – (3,200) (800) 5,600 0.1p 04/10/2004 22/12/2008
 40,825 – (11,863) (3,250) 25,712 0.1p 04/10/2004 01/10/2009
 73,975 – (32,700) (3,837) 37,438 0.1p 04/10/2004 01/10/2010
 29,100 – (7,300) (2,600) 19,200 0.1p 04/10/2004 20/10/2010
 650,000 – (400,000) – 250,000 0.1p 04/10/2004 02/01/2011
 1,221,350 – – (34,000) 1,187,350 120p 31/07/2002
1
 31/07/2011
 400,000 – – – 400,000 30p 03/06/2002 03/06/2012
 2,000,000 – – – 2,000,000 0.1p 02/10/2002 02/10/2012
 3,000,000 – – – 3,000,000 5p 17/12/2002
1
 17/12/2012
 150,000 – (27,332) – 122,668 5p 17/12/2003
1
 17/12/2012
 4,750,000 – (500,000) (250,000) 4,000,000 5p 18/12/2002
1
 18/12/2012
 400,266 – (144,133) (24,500) 231,633 5p 04/10/2004 25/01/2013
 90,000 60,000 – – 150,000 45p 15/12/2003
2
 15/12/2013
 2,474,000 – (39,996) (50,000) 2,384,004 45p 26/02/2005
1
 26/02/2014
 - 452,222 – (222,222) 230,000 45p 02/08/2005
1
 02/08/2014
 - 2,200,001 – – 2,200,001 100.4p 08/03/2008 08/03/2015 
 15,289,116 2,712,223 (1,166,524) (591,209)  16,243,606
1
 One third of share options granted are exercisable from this date, one third from 12 months after this date and one third from 24 months after this date.
2
 30,000 share options granted are exercisable from this date and 10,000 are exercisable from first of each subsequent month until 01/12/2004.
21 Reserves  
      Group Company 
      Profit and Profit and 
      loss account loss account 
      £’000 £’000
At 30 June 2004      (32,730) –
Retained loss for the year      (1,929) (14,908)
Currency translation profit on foreign currency investments    (60) – 
At 30 June 2005      (34,719) (14,908)
      Group and   
      Company  Group 
      Share premium  Shares issued 
      account by subsidiary 
      £’000 £’000
At 30 June 2004      – 40,128
Premium on shares issued in the year      15,978 –
Expenses paid in connection with share issue     (1,054) – 
At 30 June 2005      14,924 40,128 38 Annual Report & Accounts 2005 Allergy Therapeutics plc
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Notes to the Financial Statements
continued
21 Reserves continued
       Group and  
       Company 
       Other reserve –   
       EBT 
       £’000
At 30 June 2004       (373)
Sale of shares by EBT       51 
At 30 June 2005       (322)
‘Shares issued by subsidiary’ relates to the share premium account of Allergy Therapeutics (Holdings) Ltd.
At 30 June 2005 there were 5,264,109 shares in the Employee Benefit Trust with an aggregate value of £322,000 which 
reduced the shareholders’ funds accordingly. The shares will be allotted as employees exercise share options. The market 
value of the shares at 30 June 2005 was £4,606,000.
During the year the EBT reserve was transferred at its value of £373,000 from Allergy Therapeutics (Holdings) Ltd  
to Allergy Therapeutics plc.
22 Reconciliation of movement in shareholders’ funds
 
 Group Company
      Year to Year to Year to 
     30 June 2005 30 June 2004 30 June 2005 
     £’000 £’000 £’000
(Loss)/profit for the financial year      (1,929) 1,218 (14,908)
Other recognised gains and losses relating to the period (net)   (60) 40 –
Issue of shares     16,000 – 16,051
Shares issued by subsidiary     – 30 –
Purchase of shares by EBT     – (375) –
Transfer of EBT balance from subsidiary     – – (373)
Sale of shares by EBT     51 2 51
Expenses paid in connection with share issue    (1,054) – (1,054)
Net addition to shareholders’ funds     13,008 915 (233)
    
Opening shareholders’ funds     7,076 6,161 – 
Closing shareholders’ funds     20,084 7,076 (233)
23 Reconciliation of operating (loss)/profit to operating cash flow
      Year to Year to  
      30 June 2005 30 June 2004 
      £’000 £’000
Operating (loss)/profit      (2,418) 1,556
Depreciation      436 319
Amortisation of intangibles      448 333
Loss on disposal of fixed assets      5 –
Effect of foreign exchange rate changes      (58) 109
(Increase)/decrease in stocks      (916) 90
(Increase)/decrease in debtors      (875) (682)
Increase/(decrease) in creditors      3,363 (217) 
Net cash (outflow)/inflow from operating activities     (15) 1,508 39 Allergy Therapeutics plc Annual Report & Accounts 2005
24 Analysis of financing
      Year to  Year to 
      30 June 2005   30 June 2004 
      £’000 £’000
Repayment of loans      (945) (1,305)
New loan facility      – 1,000
Issue of ordinary shares (net of expenses)      14,946 –
Share premium on shares issued by subsidiary     – 30
Purchase of shares by EBT      – (375)
Issue of shares by EBT      51 2 
      14,052 (648)
25 Analysis of change in net funds
     At beginning   At end 
     of period Cash flow of period 
     £’000 £’000 £’000
Cash at bank and in hand     1,457 13,623 15,080
Debt due      (945) 945 – 
     512 14,568 15,080
26 Capital commitments
Capital commitments at the end of the financial period, for which no provision has been made, are as follows:
      Group  Group 
      30 June 2005 30 June 2004 
      £’000 £’000
      436 408
Included above is £143,000 for ongoing factory refurbishments in the UK, £88,000 for new plant and machinery  
(2004: £225,000) and £31,000 for an ERP system installed in 2003 (2004: £98,000). A further £53,000 relates  
to office refurbishment works in Spain.
Other commitments:
Between November 2004 and February 2005, 6 separate forward foreign exchange contracts were arranged for the  
sale of €7,000,000 (£4,678,000) at future dates ranging from 30 September 2005 to 31 January 2006. 40 Annual Report & Accounts 2005 Allergy Therapeutics plc
27 Leasing commitments
Operating lease payments amounting to £366,000 (2004: £321,000) are due within one year. The leases to which these 
amounts relate expire as follows:
 Land and buildings  Other
    30 June 2005 30 June 2004 30 June 2005 30 June 2004 
    £’000 £’000 £’000 £’000
In one year or less    58 – 45 44
Between one and five years    42 172 204 105
In five years or more    17 – – – 
    117 172 249 149
28 Contingent liabilities
Allergy Therapeutics (UK) Ltd., a subsidiary of Allergy Therapeutics plc, has guaranteed the deposits required for leases  
on company cars and rented office space occupied by a fellow subsidiary, Bencard Allergie GmbH. The amount as at  
30 June 2005 was €107,000 (£72,000).
Notes to the Financial Statements
continued Soluble allergens bind
to allergen specific IgE Inflammatory mediators released
Histamine, IL4, IL5,IL6, IL13, TNF ,
Leucotrienes and Prostaglandins
Rhinitis, conjunctivitis, sinusitis, 
allergic asthma, anaphylaxis.
More allergen 
specific IgE
Processed by antigen 
presenting cells such 
as B-cells macrophages 
neutrophils
Allergen epitopes
presented to committed
T-cell via MHC Class II
Committed
T-helper cells
Committed
B-cells
Pollen
House dust mites
Mould spores
Soluble 
allergens
IL4, IL13
IL4, IL13
IL5, IL13,
Eosinophil
recruitment
The 
vicious 
circle
Mast cells
Allergoids do not 
react with IgE No Inflammatory mediators 
Histamine production inhibited
Permanent reduction in allergic
symptoms such as: rhinitis, conjunctivitis, 
sinusitis, allergic asthma.
No specific 
IgE produced
Mast cells
Blocking antibodies
IgG1, IgG4 and IgA
produced
Processed by antigen 
presenting cells 
activated via TLR4 and TLR2 
agonist—MPL
®
 and tyrosine
Allergen epitopes
presented to committed
T-cell via MHC Class II
Committed
T-helper cells
Committed
T-helper cells
Naive
T cells
Clonal 
selection & 
multiplication
DC
Activated dendritic
cells migrate to
germinal centres
Class switched
B-cells
Pollinex
®
 Quattro
vaccines
Soluble allergoids
with MPL
®
IL12
IL12
Interferon
Anti-inflammatory 
mediators TGFß and IL10 
synthesised
The 
virtuous 
circle
γ 
The anatomy of allergy
The Science
An allergy is an immune hypersensitivity 
reaction in which the body’s natural defences 
react inappropriately to specific proteins or 
allergens from common substances such as 
pollen, mould spores, peanuts and many more. 
Allergic symptoms may vary depending on the nature 
and presentation of the specific allergens but all 
allergens, in some way or other, cause inflammation 
in mucosal surfaces such as those in the eyes, nose, 
upper and lower respiratory tracts. These symptoms are 
typically referred to as ‘hay fever‘ if they affect the eyes 
and nose, and allergic asthma if they affect the lower 
respiratory tract. Additionally, allergens such as house 
dust mite, whilst affecting both the upper and lower 
respiratory tract, can also cause allergic eczema through 
skin contact whilst food allergens also affect the gastro-
intestinal tract. Allergy Therapeutics currently focuses 
on vaccine treatments for the major problem of allergies 
caused by inhaled airborne allergens. 
What are allergies? Allergy vaccination
Allergy vaccination or immunotherapy  
treats the underlying cause of allergic 
disease, providing both symptomatic relief 
and the potential of a permanent cure. 
To achieve this the vaccine must modify the immune 
response by blocking the interaction of allergens 
with IgE and must prevent the production of 
allergen-specific IgE antibodies. Traditionally, this has 
required long courses of injections with gradually 
increasing doses of allergen to build the patient’s 
tolerance to the allergenic challenge whilst avoiding 
serious allergic reactions to the vaccine. Allergy 
Therapeutics has pioneered short–course vaccination 
in which the allergens are modified (allergoids) 
to prevent reaction with IgE, combined with the 
biocompatible depot L-tyrosine and a powerful toll 
receptor agonist (TLR4/TLR2) – monophosphoryl 
lipid A (MPL
®
) as adjuvants. These rapidly induce 
profound changes in the immune response to the 
allergens whilst substantially reducing the risk of 
allergic reactions.
Pollinex
®
 Quattro vaccines
Phase I and II clinical studies have included over 850 hay fever 
patients and have demonstrated significant clinical activity 
of Pollinex
®
 Quattro vaccines (4 injections). In a ‘Clinical Use’ 
study of over 3000 patients, approximately 90% demonstrated 
improvements in clinical symptoms. Patients also showed little 
or no seasonal rise in IgE and a significant increase in blocking 
IgG antibodies compared with the placebo patients where the 
reverse was true. In particular, production of allergen-specific  
IgG4 antibodies was correlated with successful treatment. 
T-helper cells isolated during the pollen season from patients 
treated with active vaccine showed an allergen-specific, highly 
significant, rise in the production of 
γ
 interferon and no seasonal 
rise in IL4 and IL5. In patients treated with the placebo the 
reverse was true. These results are entirely consistent with 
effective treatment of the underlying immunological cause of 
pollen allergy. Phase III registration trials are planned for the next 
pollen season in Europe and North America.
The key characteristic that distinguishes allergic individuals is 
the production of large quantities of IgE antibodies specific 
to the sensitising allergens. IgE is naturally important in 
handling parasitic infections and is highly bound to mast  
cells acting as a trigger for this class of immune cell. When 
the target allergens crosslink these bound antibodies, the 
mast cells release a wide range of inflammatory materials, 
including histamine, which are responsible for the allergy 
symptoms. Additionally, this process stimulates the production 
of further IgE antibodies. Antihistamines are effective in 
partially controlling allergic symptoms but have no effect on 
the course and development of the underlying disease which 
can progressively become worse.
Our product pipeline
Product Pre-Clinical Phase I Phase II Phase III Registration
Pollinex
®
 Quattro Grass
Pollinex
®
 Quattro Tree
Pollinex
®
 Quattro Ragweed
Pollinex
®
 Quattro Japenese Cedar
Pollinex
®
 Quattro Mite
Sublingual MPL
® Allergy Therapeutics plc
Annual Report & Accounts
Allergy Therapeutics plc
Dominion Way
Worthing
West Sussex
BN14 8SA
T: +44 (0)1903 844720
F: +44 (0)1903 844726
2005
www.allergytherapeutics.com
Allergy Therapeutics plc Annual Report & Accounts 2005
Allergy Therapeutics plc (ATp) is a specialty pharmaceutical 
company focused upon the treatment and prevention  
of allergy. Our mission is to establish a position  
as a mainstream supplier of novel therapies for  
the prevention and treatment of allergy with  
a comprehensive range of innovative, patent  
protected, high value allergy vaccine products.
C o n t e n t s
01 Highlights
02 Chairman’s Statement
03 Chief Executive’s Review
08 Financial Review
10 Board of Directors
12 Shareholder Information
13 Directors’ Report
17 Directors’ Remuneration Report
20  Report of the Independent Auditors to  
the Members of Allergy Therapeutics plc
21 Consolidated Profit and Loss Account
22 Consolidated Balance Sheet
23 Company Balance Sheet
24 Consolidated Cash Flow Statement
24  Reconciliation of Net Cash Flow  
to Movement in Net Funds
25  Consolidated Statement of Total  
Recognised Gains and Losses
26 Notes to the Financial Statements