www.allergytherapeutics.com
Allergy
Therapeutics plc Allergy Therapeutics is a 
European-based speciality 
pharmaceutical company 
focused upon the treatment 
and prevention of allergy Contents
Highlights
• Pollinex
®
Quattro
Grass dossier submitted
for Regulatory Review
in EU in March 2009
• Pollinex Quattro Grass
will become the first short
course vaccine for hayfever
registered across Europe
following the process of
mutual recognition
• Revenues increased by
22% to £37.8 million
(2008: £31.0 million)
• Pollinex Quattro named-
patient sales increased
by 41% to £18.2 million
• Gross profit increased
by 20% to £24.2 million
(2008: £20.2 million)
• Operating loss reduced
to £6.2 million (2008:
£15.6 million)
• R&D expenditure
reduced to £5.3 million
(2008: £16.3 million)
• In July 2009 194,131,937
new shares issued,
raising £22.1 million net
of expenses
• On 3 July 2009 the
Company repaid
£9.4 million of debt and
revised and amended
the terms of its bank
agreement
Our Business
Highlights 01
Chairman’s Statement 04
Chief Executive’s Review 06
Our Markets 08
Our Products 10
Research and Development 12
Board of Directors 14
Financial Review 16
Financial Statements
Directors’ Report 18
The Remuneration Report 24
Independent Auditor’s 27
Report to the Members
of Allergy Therapeutics plc
Consolidated Income 28
Statement
Consolidated Balance Sheet 29
Consolidated Statement 30
of Recognised Income
and Expense
Consolidated Cash 31
Flow Statement
Notes to the Financial 32
Statements
Report of the Independent 54
Auditor to the Members
of Allergy Therapeutics plc
Company Balance Sheet 55
Notes to the Company 56
Balance Sheet
Shareholder Information 60
www.allergytherapeutics.com 01 02
Our Strategy
• Continue to build our European commercial infrastructure
• Continue developing improved allergy vaccines with novel
adjuvants, improved dosing characteristics and hence
patient compliance and new delivery formulations
generating a patent protected, registered product portfolio
• Broaden the portfolio through the in-licensing and
co-development of selected products
• Identify strong commercial partners for non European
markets “Another good year from our manufacturing and 
supply operations, providing excellent service to 
our customers and continued compliance and 
quality excellence”
www.allergytherapeutics.com 03 Chairman’s Statement
”A major achievement was the submission in March
of our ultra-short course for injection grass allergy
vaccine for marketing approval in Europe”
04 This financial year has been an eventful
one in which we submitted Pollinex 
Quattro Grass for approval in Europe,
grew year on year sales by 22%, funded
the conclusion of a significant R&D 
programme, have been granted two 
further patents, enjoyed the best ever
supply performance from our 
manufacturing units, and just after the
year-end, in July, we refinanced the
Group and strengthened the board. 
Allergy Therapeutics is a strong business
and we were able to raise £22.1m from
shareholders in July 2009, with the 
Weinstein family, whose interests in 
pharmaceuticals span over 20 countries
from their South American base, acting
as a cornerstone investor. It is largely to
the credit of our shareholders that they
overwhelmingly approved the transaction
and several shareholders increased their
investment in the Company in a difficult
market. We thank all the shareholders,
new and old, for their support. 
The refinancing in July involved a £9.4m
repayment of debt to RBS and a revision
of the terms of the loan facilities, providing
the Company with ample financial 
headroom for the foreseeable future. 
The Group is now in a strong and stable
financial position and is able to focus on
the business of growing sales, achieving
a profit and treating allergy sufferers
across Europe. 
As a consequence of the financing there
have been changes to the board, 
with Keith Carter agreeing to step down
as CEO to allow Manuel Llobet, a highly
experienced executive from the Weinstein
family pharmaceutical businesses, to take
over the role. Keith will remain on the
board as a non-executive and be joined 
in that capacity by Alejandro Weinstein 
as senior representative of the Weinstein
family which now owns over 40% of the
Company. Keith is one of the founders of
Allergy Therapeutics, having played a
leading role in the buy-in from SmithKline
Beecham in 1998 and under his leadership
the Group grew from £11m to £37m in 
sales, completed its IPO, raised over
£90m in funding, conducted two 
successful development programmes,
made a submission for regulatory 
approval and comprehensively upgraded
all its operations. I thank Keith for his
great contribution. 
I welcome Manuel and Alejandro to the
board. They are both pharmaceuticals
professionals, with a wealth of experience
in many markets, geographical and 
therapeutic. Their expertise, in particular
with respect to sales and marketing, 
will be valuable to the Group as it continues
its drive to grow sales and increase 
market share. 
A major achievement was the submission
in March 2009 of Pollinex Quattro Grass
our ultra-short course four injection grass
allergy vaccine for marketing approval in
Europe. This represents the culmination
of a ten year journey from a pre-clinical
idea through an exhaustive series of 
clinical trials to the successful completion
of Phase III efficacy and safety studies.
Product launch is expected in Germany in
the second half of 2010 and subsequently
elsewhere in Europe, and will enable 
Allergy Therapeutics to increase prices
and accelerate sales growth in its current
markets as well as entering new European
markets.
Other highlights include another good
year from our manufacturing and supply
operations, providing excellent service to our
customers and continued compliance and
quality excellence. Investment continues in
improved methods and equipment to
both de-risk the business and improve 
future margins. Revenues grew 22% year-
on-year supported by a stronger Euro,
but despite a low pollen season which
impacts Allergy Therapeutics as our 
main Pollinex Quattro product exclusively
addresses the hay-fever market.
These last twelve months have been very
eventful and have presented many 
challenges to the management and staff
at Allergy Therapeutics. I am proud and
unsurprised to say that the team has
risen to these challenges, identified the
opportunities contained within them, 
and that the Group is now much stronger
as a result. We have strengthened the
balance sheet with major financing; 
and added to our development strength
with a major product submission; as well
as improving manufacturing, sales and
marketing operations capabilities.
Ignace Goethals
Chairman
18 September 2009
“The group is now
in a strong and 
stable financial
position and is 
able to focus on 
the business of 
growing sales”
www.allergytherapeutics.com 05 CEO’s Review
”The company is starting anew its voyage
to transform allergy treatment”
06 Following a period of heavy investment
since the IPO in 2004 – completing one of
the most extensive product development
programmes in the field of allergy vaccines
and also upgrading both the supply and
the commercial operations – the Group 
is now capitalising on those investments.
With a strengthened balance sheet and 
a new cornerstone investor, a product
proceeding through the registration
process in Europe (the biggest market 
for allergy vaccines), and a new Chief 
Executive with extensive and appropriate
experience in the sales and marketing 
of pharmaceuticals, the Company is 
starting anew its voyage to transform 
allergy treatment. 
Allergy vaccination continues its progress
from a niche treatment into the mainstream
of the pharmaceuticals industry. 
We welcome this development, as we
have long believed in evidence-based
medicine and registered products. 
This transition, as with all change, 
does bring challenges, one of which is 
responding to the requirements of the
Paul Ehrlich Institut (‘PEI’). The PEI 
Ordinance, which aims to implement 
the EU Directive on pharmaceutical 
regulation and so bring allergy vaccination
into regulatory line with mainstream
pharmaceuticals, will require Allergy
Therapeutics and other market participants
to undertake some work, quality and 
clinical, as well as administrative, 
to achieve national registration of products
treating the most common allergies. 
We have an extensive plan to meet these
new requirements and anticipate that the
competitive scene will change favourably
in Germany over coming years as the 
PEI Ordinance is implemented and some
products are removed from the market. 
Our development programmes in the USA
remain on FDA Clinical Hold. The situation
is still likely to be determined by the context
of an FDA review of vaccine adjuvants in
general. It is notable that although the
FDA has never approved a vaccine 
adjuvant, vaccines containing our adjuvant,
MPL, have been granted marketing 
approvals in approximately 100 countries
and, in GSK’s Cervarix, MPL has been 
approved by the World Health 
Organisation. Following the recent 
positive FDA Advisory Committee meeting
we remain optimistic that GSK’s recent
resubmission of Cervarix for US approval
will be successful and will mark the end
of the FDA adjuvant review, thereby 
providing an opportunity for us to open
discussions with the FDA regarding lifting
of our Clinical Hold. Such a discussion
will cover the risk:benefit profile of our
products and their ‘place in treatment’. 
It would be our hope to conclude these
discussions with an agreed way forward
to continue our development programme,
which will involve further safety and 
efficacy trials. It is however, not possible
to pre-judge the outcome.
It is worth remembering that for allergy
vaccines manufactured under GMP 
by ethical pharmaceutical companies, 
Europe remains the biggest market by 
far and that other markets are generally
considered to be undeveloped. We were
pleased to announce earlier this year the
granting of two further patents; one for
Japan, covering the technology behind
Pollinex Quattro, with the other covering
the entire EU for the sub-lingual use of
our MPL adjuvant for the oral vaccine 
delivery with any antigen. Our strategy
remains to further develop the Company’s
intellectual property with the assistance
of partners who will provide the financial
resources required. 
Allergy can be a debilitating condition,
and moderate to severe patients often do
not respond to pharmacotherapies such as
antihistamines. In these cases, specialist
treatment is required. Injected allergy
vaccines such as Pollinex Quattro are
well-suited to these patients. Compliance
is excellent and in the rare case of serious
adverse events the physician’s office is
the right place for these to be handled.
The European market for allergy vaccines
exceeds€600m; Allergy Therapeutics’
market share approximately 6%. 
We believe that with Pollinex Quattro,
which offers efficacy comparable to 
that of traditional allergy desensitising 
immunotherapy which often requires 20
or more shots, and to that of sublingual
allergy vaccines (SLIT), which requires
daily dosing for several months, this market
share can be grown. 
We are confident that Allergy Therapeutics
is well placed to capitalise on the 
investments of the past, win market 
share within Europe and grow profitably.
Keith Carter
Chief Executive Officer 
(up to 31 August 2009)
18 September 2009
Manuel Llobet
Chief Executive Officer
18 September 2009
“We are confident that Allergy Therapeutics
is well placed to capitalise on the 
investments of the past, win market 
share within Europe and grow profitably”
www.allergytherapeutics.com 07 Our Markets
”Our goal is not just to continue to grow sales
but to accelerate the growth of the business”
08
Net Sales by Country
Spain – 6%
Italy – 8%
UK & Export Market – 13%
Germany – 73% 09 www.allergytherapeutics.com
Allergy Therapeutics has established
commercial operations in most of 
the major immunotherapy markets 
in the world. We have a particularly
strong presence in Europe with our own 
operations in  important markets including
Germany, Italy, Spain, Austria and the
United Kingdom.
In markets where we do not have a 
direct presence, we often make our
products available through partners. 
The most important distributor markets
for us are Canada, Holland and 
South Korea.
We have recently completed the 
restructuring of many of our operations
across Europe and have begun to see 
indications of success coming from 
these changes. A major part of the
restructuring, while including changes 
to our processes and focus, was the
appointment of new talented and
experienced management teams in 
our most important markets. 
Our goal is to not just continue to 
grow sales but to accelerate the 
growth of our business. The quality 
and quantity of our efforts in sales 
and marketing within our affiliates 
has improved dramatically and we 
expect to reap rewards from this in 
the coming years. 
The most important market for the Group,
Germany is also the single largest 
immunotherapy market in the world by
value with annual sales in this market 
of€284 million. The market continues to
show strong growth with annual increases
in total sales continuing in the mid single
digits. The market also continues to have
a strong preference towards injectable
rather than sublingual immunotherapy 
and this favours Pollinex Quattro. 
This preference is only increasing with
the injectable market growing faster than
the sublingual market despite recent
product launches into the sublingual 
market.
The Group completed much of the 
restructuring of the business in Germany 
in 2007 and we continue to see changes 
in the business and results related to this
activity. We were particularly impacted,
however, in Germany by a poor pollen
season in 2008 which resulted in lower
patient flows into allergy clinics which
lead to lower than expected sales of 
allergy vaccines during the following 
prescribing season. Despite the poor
pollen season, Pollinex Quattro has become
one of the fastest growing allergy 
vaccines in this marketplace.
We estimate the total Italian 
immunotherapy market to be worth 
€55 million in sales per year. The Italian
market as a whole has experienced little
growth in recent years due to negative
economic conditions impacting patients
and their ability to pay for vaccines.
We have a much stronger organisation 
in place in Italy following our recent 
review. We believe there is a great 
opportunity to continue to grow our 
business despite the poor overall market
performance as we move more 
prescriptions in this market away from
sublingual therapy and towards injectable
immunotherapy. 
We now have the personnel and systems
structures in place to continue to accelerate
our growth and gain market share. 
This accelerated growth will come through
improved Pollinex Quattro sales and 
support of our existing portfolio.
Total market sales per year in Spain 
are estimated to be €61 million with a
mid single digit growth in value during
the past year. Growth in this market has 
recently been negatively impacted by the
economic slowdown as in Italy. It remains
a very large market in terms of volume
with approximately 150,000 patients a
year estimated to receive immunotherapy.
Injectable immunotherapy products 
continue as treatment of choice by 
Spanish physicians. 
Our restructuring in Spain is complete
and we expect to continue to gain market
share as we have done during the past
four years. This development will result
from the accelerated growth of Pollinex
Quattro and the continued support of 
our legacy products.
The United Kingdom, our home market, 
is an important marketplace and a 
potential area of future growth for the
Group. While currently there is limited
use of allergy vaccines, this is changing
and there has been an increased focus 
at a government level and in the media 
on the benefits of immunotherapy. It is
hoped that allergy services will improve 
in the near future. It is also a market with
a disproportionately large number of
opinion leaders and our work here leads
to improving the Group’s profile and 
that of Pollinex Quattro in other markets
including the United States.
Our business in the United Kingdom has
been growing quickly in a complex market.
There is a focus on pharmaeconomics
and this is a significant benefit of Pollinex
Quattro. The short duration of treatment
reduces direct and indirect costs. This leads
to high rates of compliance and makes for
compelling pharmaeconomic outcomes.
Germany
UK
Spain
Italy How We’re Doing
Our Products
“Pollinex Quattro, launched in 1999, began a
transformation for immunotherapy by introducing
allergy vaccination with only four injections per course”
10
Gross Sales
£m
Pollinex Quatro Sales
£m
2007 2008 2009 2007 2008 2009
“Pollinex Quattro
is the first in a
new generation of
allergy vaccines”
27 .4 33.8 38.6 9.5 12.9 18.2 Our Portfolio
The Group sells a wide range of allergy
vaccines and diagnostics. The main sales 
of the Group are in allergy vaccines and
we sell both injectable vaccines and 
sublingual vaccines. Our vaccines and 
diagnostics trade under certain brand
names, however, under each brand name
is a product that is produced in many 
different forms depending upon the 
specific allergy needs of the patient as
determined by the doctor. The majority 
of our sales are for the treatment of
pollen related allergies related especially
to allergies to grasses and trees. 
According to current opinion, IgE mediated
allergies (type one allergies) are due to
dysregulation of the T helper lymphocyte
(TH) cell. Whereas healthy people develop
tolerance to allergens, allergy sufferers
have a TH2-dominated immune response
with increased IgE and corresponding
clinical symptoms. This dysregulation of
the immune system can be counteracted
efficiently using specific immunotherapy
(SIT). By administering high doses of 
allergen, the balance between TH1 and
TH2 response to the allergen can be 
restored. Since SIT was first carried out
successfully by Leonard Noon in 1911, 
it has become established as the only
causal therapy for type 1 allergies.
Injectable vaccines form the largest 
segment of our vaccines portfolio and are
comprised of one new product, Pollinex
Quattro, which is the largest and the
fastest growing product in our portfolio
and other legacy products. These legacy
products trade under different names in
different markets and include Pollinex, 
TA Mix top and Venomil.  
Pollinex Quattro, launched in 1999, 
began a transformation of immunotherapy
by introducing allergy vaccination with
only four injections per course. The short
treatment period is due to the use of 
L tyrosine absorbed allergoids and the 
innovative adjuvant, monophosphoryl-
lipid A (MPL). An adjuvant is a substance
which improves the immune response 
to an antigen or allergen. MPL is derived
from a lipopolysaccharide (LPS) which is
obtained from the cell wall of Salmonella
Minnesota R 595 using a process of 
extraction, purification and detoxification.
As a vaccine adjuvant, MPL has been
used for many years in vaccine studies
and has been tested on over 30,000 
subjects with more than 100,000 doses.
Vaccines with systems containing MPL
have been evaluated in various indications
such as cervical cancer and malaria at
GlaxoSmithKline. Two vaccines with an
adjuvant system containing MPL have 
received broad approval, including in 
Europe: a hepatitis B vaccine and an HPV
vaccine to protect against cervical cancer
– Fendrix and Cervarix, respectively.
These modern, successful vaccines 
are already widely used. 
The adjuvant effect of MPL in SIT has
been documented in numerous studies
and is seen in its essential role of
promoting the switch from a TH2-directed
immune response (with IgE induction) 
to a TH1-directed immune response.
Our sublingual product is Oralvac. 
Recently we relaunched this product in 
a new and improved form as Oralvac 
Compact. Oralvac Compact’s dosing
schedule allows for a more rapid and
simpler escalation of dosage making
treatment more convenient for patients
and doctors. The product launched in
2009 in Germany and is being launched
into other European markets. We expect
that this product will be very competitive
and attract interest in the sublingual 
market at a time in which competitors 
are launching new products.
Tyrosine Pollinex
Grasses & Rye
Pollinex
Trees
Oralvac
(sublingual)
Pollinex
Quattro
Allergy Therapeutics’s current portfolio of competitive products is based 
on allergoids, (modified allergens) tyrosine depot and MPL adjuvant. 
These technologies offer significant benefits over older allergy vaccination
technologies. Allergy Therapeutics’ development programme is designed 
to improve product characteristics by providing an improved safety profile
and reduce the number of injections over the treatment period, resulting 
in well-accepted registered products likely to be prescribed by a higher
percentage of physicians.
11 www.allergytherapeutics.com Research and Development
“The most significant event for Allergy Therapeutics
during the year has been the Pollinex Quattro 0.5ml
authorisation application”
12 “Pollinex Quattro Ragweed 0.5ml R301
analyses have also provided more 
information on the benefit of the 
Pollinex Quattro range of products”
13 www.allergytherapeutics.com
Pre-clinical
Japanese Cedar
Phase
Trees 
(US / Canada / 
Europe)
Phase
Grasses (US /
Canada)
Ragweed (US / 
Canada)
Phase
Sublingual MPL
Registration
Grasses
(Europe)
Our Product Pipeline
23 1
The most significant event for Allergy
Therapeutics during the year has been the
Pollinex Quattro Grass 0.5ml marketing
authorisation application (MAA). It was
submitted on schedule on the 3 March
2009. This new product licence application
is the first in a new generation of ultra
short course adjuvinated allergy vaccines.
The submission to the leading regulatory
authority in the field, the Paul Ehrlich 
Institute (PEI) in Germany, is now under
review. We anticipate approval to support
product launch in our biggest market, 
Germany, in the second half of 2010. 
Subsequent to PEI national approval we
will extend the submission under the EU
Mutual Recognition Procedure. Key markets
under consideration are Italy, Spain, Austria, 
UK, France and the Netherlands.
The continued analyses of the landmark
Pollinex Quattro Grass 0.5ml G301 Phase 
III study continues and the consistency 
of the positive outcomes underlines the
robustness of the overall study result.
Valuable additional information on 
important sub-groups of patients and 
various outcomes has been gathered. 
Of particular note is the 32% benefit
(p=0.034) in the combined symptom and
medication score (CSMS) demonstrated
in European patients (completed cases
dataset). The additional G301 data 
have been presented at the key scientific
meetings ACAAI, AAAAI and EAACI.
The Pollinex Quattro Ragweed 0.5ml
R301 analyses have also provided more
information on the benefit of the Pollinex
Quattro Range of products. In the full-dose
group, efficacy has been proven over 
the entire season, a 13.5% difference
(p=0.012). It is significant that this was
accompanied by a marked change in
immunology with a >11 fold increase 
in IgG after treatment, a benefit largely
maintained throughout the season. 
The accompanying Quality of Life
improvements were statistically and
clinically significant (p<0.016) both in
total score and in several individual 
domains. The positive outcome of the
R301 study combined with the successful
R204 study constitutes a package of 
clinical data potentially suitable for a 
new drug submission in Canada and 
thus combined with the G301 results 
are attractive to possible partners in
Canada for both Pollinex Quattro
Ragweed 0.5ml and Grass 0.5ml. 
The FDA’s review of new vaccine 
adjuvants continues with two important
milestones during the period. 
First Allergy Therapeutics participated 
in a workshop held by FDA/ NIH in 
Washington in December 2008 at which
the potential utility and safety-in-use of
several vaccine adjuvants was evident.
Second GSK have re-submitted their new
drug application (NDA) for Cervarix, 
an MPL adjuvant vaccine for the prevention
of cervical cancer. 
Following the recent positive FDA 
Advisory Committee meeting we are 
optimistic that US approval of Cervarix 
will result and will mark the end of the 
FDA adjuvant review, thereby providing 
an opportunity for us to re-open 
discussions with the FDA regarding 
lifting of our Clinical Hold.
Such a discussion will cover the risk: 
benefit profile of our products and 
involve reviewing their safety, efficacy 
and ‘place in treatment’. It would be our 
hope to conclude these discussions with 
an agreed way forward to continue our
development programmes, which will 
involve further safety and efficacy trials. 
It is however, not possible to pre-judge 
the outcome.
In November 2008, the PEI introduced the
Therapy Allergen Regulation, a statutory
instrument to extend the German Drug
Law (following incorporation of the EU
Directive 2001/83/EC) to cover licensure
of particular allergen products supplied
on a Named Patient Product basis. 
Allergy Therapeutics has implemented a
clear strategy and put in place the resources
to submit marketing authorisation 
applications for its leading products. Messages from the Board
Ignace Goethals
Non-Executive Chairman (64)
Ignace has had a successful career in 
the pharmaceutical industry, with Eli Lilly,
Squibb/Bristol Myers Squibb and 
SmithKline Beecham rising to the highest
levels prior to retiring at the end of 1998
when he was Head of World-wide Supply
Operations. His experience is exceptionally
broad, covering sales and marketing,
country and regional general management
positions, licensing and business 
development, business unit management
(Biologicals and Animal Health) and 
supply. Ignace has a degree in Applied
Economics from the University of Louvain
(Belgium) and an MBA from the University
of Chicago. 
As Non-Executive Chairman, Ignace is 
responsible for leadership of the Board 
by ensuring Board effectiveness, good
corporate governance and effective 
communication with shareholders. 
Ignace sits on the Audit and Remuneration
Committees.
Manuel Llobet
Chief Executive Officer (45)
Manuel Llobet joined the Company in
September 2009 following the successful
refinancing by Azure Ventures Limited. 
Prior to this appointment, Manuel was the
Principal Consultant for Biohealth LLC and
CEO of International Operations of the 
Weinstein family’s group of companies. 
Mr Llobet was responsible for international
development of the Weinstein family’s
group of pharmaceutical companies in 20
countries. Mr Llobet has over ten years
experience working in the pharmaceutical
industry, primarily in South America and
has served as Executive Director of 
Corporación Drokasa where he was 
responsible for a US$25 million AAA-
rated bond issue to finance the group’s
expansion plans; CEO of Laboratorios 
Andrómaco where he led the Company to
an IPO on the Santiago Stock Exchange;
and Business Development Manager for
Laboratorio Chile. Mr Llobet participated
in the Executive Program at the Graduate
Business School of Stanford University
and has an MBA from IESE, Universidad
de Navarra, Barcelona. Mr Llobet also has
degrees in Industrial Business Management
and Chemical Engineering from Universitat
Ramon Llull, Barcelona.
As Chief Executive Officer, Manuel is 
responsible for the executive management
of Group operations, investor relations,
and implementation of the Board’s collective
decisions overseeing all operational 
aspects of the Group and directing the 
long-term strategy.
Ian Postlethwaite
Finance Director (46)
Ian Postlethwaite joined Allergy 
Therapeutics in April 2002 as Finance 
Director. Prior to this he worked for 
Ellerman Investments (1997 - 2002), 
a UK private equity house, the roles of
Chief Executive Officer with AFS, 
one of the largest independent finance
houses in the UK, and Finance Director
with a number of successful start up 
technology companies. Previously he held
senior finance positions with Ericsson, 
from 1994 - 1997, and Philips Electronics
from 1989 - 1994. He is a qualified 
accountant and a Fellow of the 
Chartered Association of Certified 
Accountants. Ian has a BSc (Hons) in 
Geological Sciences from Aston University.
As Finance Director Ian is responsible 
for Group financial reporting and control,
tax, finance systems and internal audit.
Ian is also the Company Secretary, 
a position he has held since 2004.
Thomas Holdich
R & D Director (50)
Tom is a pharmaceutical physician whose
specialty is global drug development. 
Tom joined Allergy Therapeutics in 
August 2004. He has been involved in
clinical research in both large 
pharmaceutical companies, such as 
AstraZeneca, and smaller companies such
as Shire Pharmaceuticals for the last 20
years. He has directed international 
research projects from Phase I (first time
into man) to Phase IV (life cycle 
management) in therapeutic areas ranging
from epilepsy and schizophrenia to HIV
and inflammatory bowel disease.
As R&D Director, Tom is responsible for
establishing and maintaining the Group’s 
R&D programmes.
Christian Grätz
Director, Market Operations (56)
Christian joined the Company in July 1998.
Prior to this he was Marketing & Sales 
Director at Akzo Nobel/Organon GmbH
Board of Directors
14 between 1996 and 1998. During his time
at Organon he restructured the Company,
in-licensed the entire gynaecology product
portfolio from Orion (Finland) and 
successfully managed a Joint Venture with
Janssen-Cilag. Previously Christian was
Business Unit Director at American
Cyanamid/ Lederle GmbH (1991-1996). 
He brought Lederle's vaccines from the
USA to Europe where they were launched
in 1994 and rapidly gained significant
market share. When Lederle and 
American Home Corp. merged, Christian
was responsible for restructuring the new
Company and appointed Division Director
Germany. Before joining Lederle he held a
number of senior management positions
with large companies including BASF/
Knoll AG and Beiersdorf AG. Christian 
lectured on economics at Universities 
of Hagen and Gelsenkirchen and has a 
Dr. (rer. oec.) from Bochum University. 
As Market Operations Director, Christian 
is responsible for global sales activities.
Stephen Smith
Non-Executive Director (56)
Stephen Smith is a Chartered 
Management Accountant, Fellow of the
Association of Corporate Treasurers and
Member of the Institute for Turnaround
who, since 1995, has operated as an 
independent consultant, non-executive 
director and interim manager (CRO/CEO/
COO/FD) on an international basis. 
Up to 1995 Stephen held various senior 
financial positions in UK based 
international public companies including
6 years as Group Treasurer of The Rank
Organisation and 3 years as Group Finance
Director of a quoted hotel Company. 
Stephen chairs the Remuneration and 
Audit Committees.
Virinder Nohria
Non-Executive Director (54)
Virinder works as a strategic consultant 
in international drug development. He has
led teams in many successful interactions
with regulatory bodies in several countries,
particularly the US FDA. He is founder
and Chief Medical Officer of Alaven 
Pharmaceutical LLC, a privately held 
specialty pharmaceutical Company in the
areas of gastroenterology and women’s
health. Dr. Nohria served as Chief Medical
Officer and Vice President of Xcel 
Pharmaceuticals, Inc., a US specialty 
pharmaceutical Company until the sale of
the Company to Valeant Pharmaceutical
International in early 2005. Prior to joining
Xcel, Dr. Nohria held several positions in
biotechnology and pharmaceutical 
companies including UCB Pharma and 
Eli Lilly and Company. Dr. Nohria is a board
certified paediatric neurologist and received
his medical degree from Cambridge
University and doctorate in neuro-
pharmacology from University of Bradford. 
He is currently based in the US and has 
an affiliation with Mercer University. 
Virinder sits on the Remuneration 
Committee.
Alejandro Weinstein Jr
Non-Executive Director (51)
Alejandro Weinstein Jr. is CEO of 
Laboratorios Recalcine Chile, a position 
held since 2000, and is responsible for 
the entire Weinstein family group of 
pharmaceutical companies. Mr Weinstein
has been responsible for transforming 
the Recalcine Group from a local Chilean
pharmaceutical Company into a global
family pharmaceutical Company with 
a presence in 20 countries and double
digit sales growth for the last five years. 
Mr Weinstein has been active in developing
and managing several businesses and
start ups in the pharmaceutical industry
and the healthcare sector, including
Genomika Foundation, a stem cell research
organisation; Biomedical Research
Consortium, a joint venture between a
biotech R&D Company and a university;
Vidacel and Banco de Vida, public and
private stem cell banks in Chile; and
several other joint ventures with 
local and foreign R&D companies. 
Mr Weinstein has a BA, is a Certified 
Public Accountant and participated in the
Owner/President Management Program
(OPM) at Harvard Business School.
Keith Carter
Non-Executive Director (50)
Keith is a founding shareholder of Allergy
Therapeutics, and was part of the team
that orchestrated the MBI of the Company
from SmithKline Beecham. Prior to this
his career was spent in corporate advisory
and corporate finance work with Lloyds
Merchant Bank, Drexel Burnham Lambert
and latterly at NatWest Markets, the
investment banking arm of the National
Westminster Bank, where he headed the
Pharma Group. He began specialising in
advice to the pharmaceuticals industry in
1990, when he ran his own corporate
finance boutique. Keith has a First Class
Honours degree in Economics from
Cambridge University. 
Keith was CEO of Allergy Therapeutics plc
from 2004 to 2009.
15 www.allergytherapeutics.com Financial Review
“ The Group’s flagship product, Pollinex Quattro continued
to sell very well, with gross sales of £18.2m (2008: £12.9m),
an increase of 41% over the previous year. On a constant
currency basis the increase was 21%”
16 17 www.allergytherapeutics.com
The following review should be read in
conjunction with the Group’s consolidated
financial statements and related notes 
appearing elsewhere in this annual report.
Revenue
For the year ended 30 June 2009 total
gross sales increased by 14% to £38.9m
(2008: £34.2m). Sales included the receipt
of milestone payments from our Canadian
licensees of £0.3m (2007: £2.7m). 
After statutory rebates in the German
market net sales were £37.8m (2007:
£31.0m), an increase over the previous
year of 22%. Sales benefited from the 
increasingly strong Euro; the relative
strength of the Euro over the previous
year adding £5.0m to the net sales.
Own markets
The Group competes directly in eight 
European markets, including three of 
Europe’s four most important for allergy
vaccination: Germany, Italy and Spain. 
The Group has a significant presence in
Germany, which is the largest market in
the world for allergy vaccines. The allergy
vaccine market in Germany continued to
grow during the year, albeit at a slower
rate due to the low pollen count in the
2008 season, at the rate of 9% (2008: 20%).
Company gross sales in Germany were
£28.9m (2008: £23.8m), an increase over
the previous year of 21% supported by
the strong Euro. The rebate on pharma-
ceutical sales, which is market wide,
has since May 1st 2006, included 100% of
any price increases since 1 November
2005 on top of the basic rate of 6%. 
On 1st May 2008 the rebate reverted back
to its original form of a basic 6%. In Italy
and Spain, supported by the strong Euro,
the Group has demonstrated a positive
performance. In Italy annual sales were
£3.0m (2008: £2.5m), an increase of 21%
and in Spain sales were £2.2m (2008:
£1.9m), an increase of 16%. Operations in
the UK, the Czech and Slovak Republics,
Poland and Austria performed well 
contributing £2.6m to sales (2008: £1.5m).
Licensees
The Group also sells through licensees
and distributors, accounting for 6% of 
the gross sales. Total sales for the year
were £2.1m (2008: £4.5m) a decrease of
53% on the previous year due to the 
inclusion last year of a large milestone 
receipt of £2.7m (2009 £0.3m). 
These milestone receipts were from the
Group’s Canadian licensees for Pollinex
Quattro and were triggered by reaching
certain development activities.
Product sales
The Group’s flagship product, Pollinex
Quattro continued to sell very well, with
gross sales of £18.2m (2008: £12.9m), 
an increase of 41% over the previous
year. On a constant currency basis the 
increase was 21%.
Cost of sales and net operating expenses
In general, manufacturing costs have 
increased as a result of an increase in
general operating expenditure such as
utility and maintenance costs together
with an increase in heads to ensure 
compliance with recommended good
manufacturing practice (GMP). 
As a consequence of these increases,
cost of goods sold was £13.6m (2008:
£10.9m), an increase of 25% over the 
previous year. Marketing, promotion and
selling costs increased in the year
(£13.6m against the previous year figure
of £11.8m) largely due to the stronger
Euro making overseas purchases more
expensive against Sterling. Distribution
costs also grew for this reason and as a
result of the increasing sales. 
Administrative expenses have increased
by 56% to £10.3m (2008: £6.6m) due to 
the impact of valuing financial derivatives 
under IFRS (£1.0m), foreign exchange 
losses on forward contracts (£1.8m), 
consultancy and professional fees in 
connection with the Company’s refinancing
activities (£0.6m) and additional regulatory
fees to comply with the new EU directives
(£0.4m). As the development programme
for Pollinex Quattro nears its end, R&D
costs have decreased by 67% to £5.3m
(2008: £16.3m). Most of the activity 
relates to the extensive Phase III 
programme for Grass and Ragweed.
Results of operation
As a consequence of investment in the
development programmes in preparation
for the launch of Pollinex Quattro the
Group recorded an operating loss on 
ordinary activities of £6.2m (2008: loss
£15.6m).
T axation
The Group in total has tax losses to carry
forward of £71m (2008: £59m). However
these losses are primarily in the UK and 
it is likely that corporation taxes will 
become payable in overseas subsidiaries 
in the near future. 
Net assets
Due primarily to investments in R&D the
balance sheet had net liabilities at 30
June 2009 of £23.2m (2008, liabilities:
£11.3m), an increase of £11.9m. Capital
expenditure on plant, property and 
equipment in the year was £1.3m (2008:
£2.3m); contributing to the increase in the
book value of tangible fixed assets to
£7.2m from £6.9m. The main component
of this spend is the improvement to the
manufacturing capacity through the 
purchase of a new vial filling machine.
Inventory values increased marginally by
3% during the year to £6.0m (2008: £5.8m).
Current liabilities have increased 
significantly to £21.8m (2008: £8.1m).
This is primarily due to the reclassification
of £9.4m of debt repaid on 3 July as a
short term liability at the balance sheet
date. Trade and other payables also rose
to £9.0m (2008: £4.8m) as careful cash
management strategies were actioned
whilst awaiting the outcome of the 
funding negotiations.
Capital structure
The Group finances its operations
through equity and debt. In July, £22.1m
net of expenses was raised by means of 
a Subscription, Offer and Placing at a 
price of 12p per Ordinary share, approved
by members in General Meeting on 30
June 2009. At the same time, the terms 
of the loan agreement were revised and
amended; the Group now has a fixed
term loan of €11m (fully drawn down in
July 2009) and a revolving credit facility
of€15.5m.
Cash flows
As at 30 June 2009 the cash/overdraft 
position was an overdrawn balance of
£26k, a decrease of £2.3m from a £2.3m
cash balance at 30 June 2008 due 
primarily to the significant investment 
in the year in the R&D programme. 
For the year, net cash used in operations
amounted to £0.1m (2008: £19.1m). 
Ian Postlethwaite
Finance Director
18 September 2009 18
Directors Report
The Directors present their annual report and the audited 
financial statements for the 12 months ended 30 June 2009. 
The financial statements are for Allergy Therapeutics plc 
(the “Company”) and its subsidiary companies (together, 
the “Group”).  
Principal activities
The Group is engaged in the development, manufacture, 
marketing and sale of a range of pharmaceutical vaccine 
products designed for the immunological treatment of the 
allergic condition. Vaccinations take the form of allergen-specific,
named-patient-specific and standard products in injectable and 
sublingual presentations. The business is headquartered in 
Worthing, West Sussex, where development and manufacturing 
is based, with sales and marketing subsidiaries in Germany, 
Austria, Italy and Spain and representative offices in Poland 
and the Slovak Republic.
Results
The loss for the year after taxation was £11,764k (2008: £20,297k).
The results for the year are set out on page 28 and are dealt with
in more detail in the Financial Review. 
Business Review
The purpose of this business review is to inform members of 
the Company and help them to assess the Group’s performance 
during the year, through financial and non-financial activities, 
outlining the trends and factors which are likely to influence 
future developments. A review of development and performance
of the Group, including important events, progress during the
year, the financial performance during the year and likely future
developments, can be found in the Chairman’s Statement on
pages 4 and 5, the Chief Executive’s Review and the Financial 
Review on pages 6 to 17 and are incorporated in this report by
reference.
Fair review of the Company’s business
Revenue in the year increased to £37.8m compared to £31.0m in
the previous year, an increase of 22%. The operating loss was
£6.2m (2008: £15.6m), the reduction being largely a consequence
of reduced research and development costs in the year. 
Staff turnover in the UK during the year was 19.2% (2008: 13.4%),
compared to an average UK staff turnover rate of 19.2% (2008:
19.2%) (data supplied by the Chartered Institute of Personnel 
and Development.)
Description of the principal risks and 
uncertainties facing the Company
In common with other pharmaceutical companies the Group
faces a number of risks and uncertainties. Internal controls are in
place to help identify, manage and mitigate these risks. The main
risks have been identified as follows;
Risk that the Group is unable to provide effective commercially
successful products
Continued development of viable new products is key to the 
success of the Group and is a costly and lengthy process. 
All development projects and business cases are reviewed and 
Board approval sought to ensure budgets are maintained. 
The clinical hold imposed by the FDA on Pollinex Quattro in 2007
remains as part of a wider ongoing investigation into adjuvant
technologies. A key risk facing the Company with respect to new
development in the US is whether the clinical hold is lifted and 
if so, on what terms. The registration of Pollinex Quattro in 
Europe is a key priority and a dossier for Pollinex Quattro Grass
was submitted in February this year.
Product liability risk
Despite extensive product testing prior to market launch, products
may produce unanticipated adverse side effects that may hinder
their marketability. The Group may be insufficiently covered for
any potential litigation which in some cases can potentially be
open-ended. The Group’s manufacturing facilities and those of
some of its suppliers are subject to regulatory requirements 
and there is a risk that such facilities may not comply with such
requirements.
Intellectual property risk
Group patents may be challenged at any time and any 
unsuccessful defence may cause the Group to lose protection 
for its products and subsequently affect further development
and sales. The Group is reliant on some intellectual property 
owned by external stakeholders that, if lost, will hinder or cease
production for some of it products.
Economic risks
A high level of risk is attached to the research, development and 
commercialisation of innovative drugs. The Group ensures that
business cases are scrutinised before Board approval and that
any increases in costs are justified. Key suppliers may be unable
to execute contractual requirements that hamper product 
development and/or the route to markets, but the Group 
maintains appropriate measures to protect its supply chains. 
The Group may be unable to attract partners or licencees on
favourable terms or recruit the right staff to help develop and
market its products. Approximately 70% of Group sales are
made in Germany and therefore Group results are sensitive to
German legislation and government policies.
Financial risks
Adequate funding may not be available to the Group, either
through reserves or external partners for the advancement of
clinical trials, manufacturing and marketing. Failure to obtain 
further funding may lead to postponement or cancellation of 
programmes and a scale back of operations. The Board actively
review the financial requirements of the Group on a regular
basis to preserve a routine level of investment. Currency risk is
regularly reviewed and foreign currency forward contracts are
initiated when and where appropriate.
Financial risk management objectives and policies
Note 23 in the Notes to the Financial Statements gives details 
of the Company’s objectives and policies for risk management 
of financial instruments. 19 www.allergytherapeutics.com
Development and performance of the Company’s business 
during the financial year
Pollinex Quattro, the Group’s flagship product, continued to 
sell well with sales increasing by 41% over the previous year 
(at a constant currency growth was 21%). In R&D, the dossier 
for registration of Pollinex Quattro Grass was submitted in
March this year.
Position of the Company’s business at the end of the year
The implementation of commercial and marketing initiatives
across all territories has helped to maintain and strengthen the
Group. The submission of Pollinex Quattro Grass dossier in 
Europe in March 2009 will allow the Group to focus on European
markets and further strengthen its core business.
Main trends and factors likely to affect the future development
performance and position of the Company’s business
Allergy remains a fast growing market with largely unmet 
market needs. The allergy “epidemic” continues to grow and it
is increasingly recognised that for many suffering from hayfever, 
it is far from being a trivial matter. There are currently very few
competitors in the niche market in which the Group performs
with none at such advanced stages of product development. 
The Board is confident in achieving European registration for
Pollinex Quattro Grass and expects further expansion of product
sales worldwide.
Environmental matters
The Board is committed to minimising the Group’s impact on 
the environment and ensuring compliance with environmental
legislation. The Board considers that its activities have a low 
environmental impact. The Group strives to ensure that all 
emissions including the disposal of gaseous, liquid and solid
waste products are controlled in accordance with applicable 
legislation and regulations. Disposal of hazardous waste is 
handled by specialist agencies. 
Employees
The Group currently employs over 350 people in seven countries
and is committed to achieving equality of opportunity in all 
employment practices. A thorough review of all employees is
performed annually to identify and promote areas that require
development and growth; feedback is encouraged and sought.
Staff are motivated by performance related incentives, which
help to attract and retain the right people, and are encouraged to
achieve business targets through market-rate pay, discretionary
performance based bonuses and long term incentive programmes.
The Board is committed to retaining staff as a high priority for
the Group and implementing well balanced, challenging incentives
makes this possible. Training and development appropriate to
individual and business needs is offered and remuneration for
professional development is considered on a case by case basis. 
The Group places considerable value on the involvement of its
employees and has continued to keep them informed on matters
affecting them as employees and on the various factors affecting
the performance of the Group. This is achieved through formal
and informal meetings and email updates. Family friendly 
employment policies conform to statutory requirements and the
adoption of flexible working practices are adopted where viable.
The Group implements equality of opportunity in all of its 
employment practices, policies and procedures. Employees 
are highly valued and their rights and dignity are respected. 
The Group practices equal treatment of all staff and potential
staff irrespective of their race, creed, colour, sexual orientation,
nationality, ethnic origin, religion, disability, age, gender or 
marital status. The equal opportunities section of the Staff 
Handbook covers all permanent and temporary employees, 
job applicants, agency staff, consultants and contractors.
A full review of the Group’s activities, important events affecting
the Group and its development programme is contained in the
Chief Executive’s Review on pages 6 and 7 and the Financial 
Review on pages 16 and 17, both of which form part of this 
report.
Corporate social responsibility
The Directors recognise the increasing importance of corporate
social responsibility and endeavour to take into account the 
interests of the Group’s stakeholders, including its investors, 
employees, customers, suppliers and business partners when
operating its business. The Group is committed to empowering
responsible employees who display sound judgement and
awareness of the consequences of corporate decisions and 
actions, and who act in an ethical and moral way.
Directors and Directors’ interests
The Directors who held office during the period were as follows:
Date of appointment
Ignace Goethals
Non-executive Chairman 8 September 2004
Keith Carter
Chief Executive Officer 1 July 2004
Christian Grätz
Market Operations Director 8 September 2004
Thomas Holdich
R&D Director 8 September 2004
Ian Postlethwaite
Finance Director                                1 July 2004
Stephen Smith
Non-executive Director 8 September 2004
Virinder Nohria
Non-executive Director 1 November 2005
The dates of appointment above refer to appointment as 
Directors of Allergy Therapeutics plc. All the Directors, with the
exception of Dr Nohria, were previously Directors of Allergy
Therapeutics (Holdings) Limited.
Under a Compromise Agreement and Letter of Appointment 
between Mr Carter and the Company dated 11 June 2009, 
Mr Carter stepped down as Chief Executive Officer and became 
a Non-executive Director on 1 September 2009. 20
Under a Service Agreement dated 11 June 2009 between 
Mr Manuel Llobet and the Company, Mr Llobet assumed the role
of Chief Executive Officer on 1 September 2009 and relinquished
his position as a Non-executive director held from 1 July 2009.
Under a Letter of Appointment dated 11 June 2009, Mr Alejandro
Weinstein was appointed a Non-executive Director of the 
Company effective from 1 July 2009.
Mr Keith Carter, Mr Ian Postlethwaite and Dr Virinder Nohria 
retire by rotation in accordance with the Articles of Association
and, being eligible, offer themselves for re-election at the 
forthcoming Annual General Meeting. Mr Manuel Llobet and 
Mr Alejandro Weinstein were elected as directors effective 1 July
2009 by shareholders in General Meeting on 30 June 2009.
The Directors’ who held office at the end of the financial year had
the following interests in the ordinary shares of the Company:
AT BEGINNING OF YEAR:
Name                                Ordinary Shares Options + LTIPs
Ignace Goethals* 1,897,912 1,150,000
Keith Carter* 3,172,669 1,862,654
Christian Grätz 510,658 2,539,986
Thomas Holdich - 698,471
Ian Postlethwaite - 3,844,690
Stephen Smith 6,513 900,000
Virinder Nohria 5,211 100,000
AT END OF YEAR:
Name Ordinary Shares Options + LTIPs
Ignace Goethals* 2,897,912 150,000
Keith Carter* 3,172,669 1,662,654
Christian Grätz 510,658 2,409,986
Thomas Holdich - 568,471
Ian Postlethwaite - 3,714,690
Stephen Smith 756,513 150,000
Virinder Nohria 5,211 100,000
*All or part are shares held in trust of which the Director is a beneficiary.
Mr Weinstein, appointed on 1 July 2009, held an interest in
116,666,666 ordinary shares in the Company owned by Azure
Ventures Limited and held no options as at 1 July 2009. 
As of 1 July 2009 Azure Ventures Limited also held an interest 
in Warrants over £4.0m of ordinary shares in the Company, 
of which £1.5m were exercised on 2 July 2009.
Mr Llobet, appointed on 1 July 2009, held an interest in 3,125,000
ordinary shares in the Company owned by Wild Indigo Limited
and held no options.
Under a Compromise Agreement between Mr Carter and the
Company dated 11 June 2009, Mr Carter’s share options remain
exercisable for either six or twelve months from 1 September
2009 in accordance with the rules of the various schemes. 
Mr Carter’s provisional grant of shares of 487,656 under the 
Long Term Incentive Plan expired on 1 September 2009.
Directors’ indemnity
The Directors and officers of the Company are insured against any
claims arising against them for any wrongful act in their capacity
as a Director, officer or employee of the Company, subject to the
terms and conditions of the policy.
Structure of the Company’s capital
The Company’s share capital traded on the AIM market of the
London Stock Exchange comprises a single class of ordinary
shares of 0.1pence each, each carrying one voting right and all
ranking equally with each other. At 30 June 2009 82,366,614
shares were allotted and fully paid. Details of movements in the 
Company’s share capital during the period are shown in Note 26
to the financial statements.
Following acceptance by shareholders in General Meeting of the
Offer, Subscription and Placing on 30 June 2009, the issued
share capital of the Company on 1 July 2009 was 263,998,551 
ordinary shares. Following an exercise of Warrants by Azure
Ventures Limited over 12,500,000 ordinary shares on 2 July 2009,
the issued share capital of the Company, after admission to the
AIM market on 10 July 2009 was 276,498,551 ordinary shares.
Details of employee share option schemes are set out in Note 
27 to the financial statements. Participants in employee share
schemes have no voting or other rights in respect of the shares
subject to their awards until the options are exercised, at which 
time the shares rank pari passu in all respects with shares 
already in issue.
Substantial shareholders
At 6 September 2009 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
Azure Ventures Limited 116,666,666 42.19
Prudential Corporation 
Group of Companies 14,999,999 5.42
Highclere International 
Investors Limited 12,874,895 4.66
Smithkline Beecham 
Biologicals
Manufacturing S.A 10,118,748 3.66
Invesco Limited 9,053,332 3.27
Fidelity Limited 8,854,410 3.20
Changes to interest in own shares
During the year the Company allocated 1,378,293 ordinary
shares out of the Employee Benefit Trust to satisfy share options
that were exercised. The Employee Benefit Trust no longer holds
any shares in the Company. 21 www.allergytherapeutics.com
Corporate governance
The Company’s shares are listed on the Alternative Investment
Market (“AIM”) of the London Stock Exchange. The Company is
therefore subject to the AIM Rules for Companies, and is 
consequently not required to comply with the best practice 
corporate governance provisions contained within the Combined
Code-June 2008 (the “Code”) appended to the Listing Rules 
of the Financial Services Authority. Nevertheless, the Company
fully recognises the importance of good corporate governance
and fully endorses the spirit and principles of the Code and
seeks voluntarily to adhere to the Code where possible, taking
into consideration the Group’s size and constitution of the Board.
The Board
The Board is led by the Chairman and comprises the Chief 
Executive Officer, the Finance Director, two further executive
Directors and four non-executive Directors. Biographical details of
all Board members are shown on pages 14 to 15. The roles 
of Chairman, who is non-executive, and Chief Executive Officer
are separate. The Directors feel that given the current size of the
Company, the roles of Company Secretary and Finance Director
are not deemed necessary to be separated. All Directors have 
direct access to the services and advice of the Company 
Secretary and to external independent professional advice at 
the expense of the Company.
The Board has a formal schedule of matters specifically reserved
to it for decision at Board meetings. This covers strategy and
management, financial reporting and controls, internal controls,
major contracts, external communications with investors, 
executive committee appointments and remuneration, 
appropriate delegation of authority, corporate governance 
matters and appropriate policies for key areas including health
and safety, corporate social responsibility and the environment.
The Board delegates certain other responsibilities to committees,
details of which are set out below.
Board Committees
The Company has an Audit Committee and a Remuneration
Committee with formally delegated duties and responsibilities.
The chairman of each committee reports directly to the Board.
The Board is considering whether to have a separate 
Nominations Committee but currently reserves for itself the 
responsibility for the appointment of new Directors under the
leadership of the Non-Executive Chairman.
The Audit Committee, with written terms of reference, comprises
Stephen Smith (Chairman) and Ignace Goethals. It meets at least
twice each year and is responsible for ensuring that the financial
performance of the Group is properly reported and monitored,
meeting with the auditors and reviewing the reports from the 
auditors relating to the financial statements.
The Remuneration Committee, also with written terms of 
reference, comprises Stephen Smith (Chairman), Ignace
Goethals and Virinder Nohria. The Human Resources manager
takes the minutes of the meeting and acts as an employee 
representative. It reviews the compensation policy and strategy
for the Group as a whole and the scale and structure of the 
executive Directors’ remuneration packages including the terms
of their service contracts. No Director takes part in the discussion 
of his own remuneration. It is also responsible for grant of
shares under the Group’s Long Term Share Incentive Plan
Full details of Directors’ remuneration and a statement of the
Company’s remuneration policy are set out in the Directors’ 
Remuneration Report on pages 24 to 26.
Internal control
The Board has ultimate responsibility for the system of internal
control maintained by the Group. The system is designed to
manage rather than eliminate risk. It can provide only reasonable
and not absolute assurance against material misstatement or
loss and includes the safeguarding of assets, the maintenance of
proper accounting records, the reliability of financial information,
compliance with appropriate legislation, regulation and best
practice and the identification and management of business risk. 
The Company has an internal audit function, reporting directly 
to the Audit Committee, which carries out reviews periodically
of the Company’s subsidiaries in the UK, Germany, Austria, Italy
and Spain. The Group also has a budgeting and reporting system
in place, with results compared to budget, variance analysis and
re-forecasting of projected results. 
Shareholder relations
The Company maintains a policy of open dialogue with all 
shareholders to ensure that the objectives of the Group are 
understood. The Chief Executive Officer, R&D Director and the
Finance Director make regular presentations to stakeholders and
discuss any areas of concern and meet regularly with analysts
and major shareholders to provide updated information about
the Group. Press releases, general information on the Group,
shareholder presentations and investor information are to be 
accessed via the Group’s website, www.allergytherapeutics.com.
Annual General Meeting
The notice convening and giving details of the Annual General
Meeting of the Company accompanies this 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.
In determining the policy, the Audit Committee has taken into 
account relevant ethical guidance regarding the provision of
non-audit services by the external audit firm and does not agree
to the auditor providing a service if, having regard to the ethical
guidance, the result is that the external auditor audits its own
work, the external auditor makes management decisions for the
Company, a mutuality of interest is created or the external 
auditor is put in the role of advocate for the Company. 22
Research and development
The Group will continue its policy of investment in research and
development, although this will be at a lower level of spend than
that seen in previous years, in order to improve its competitive 
position in the market. In accordance with International 
Accounting Standards, during the year the Group expensed to
the income statement £5.3m (2008: £16.3m) on research and 
development. Further details on the Group’s research and 
development are included in the Chief Executive’s Review on
pages 6 and 7.
Going concern
The Group’s business activities, together with the factors likely
to affect its future development, performance and position are
set out in the Business Review on pages 18 and 19. The financial
position of the Group, its cash flows, liquidity position and 
borrowing facilities are described in the Finance Director’s 
Finance Review on pages 16 and 17. In addition, Note 23 to the
financial statements includes the Group’s objectives, policies and
processes for managing its capital, its financial risk management
objectives, details of its financial instruments and its exposures
to foreign currency risk, interest rate risk and liquidity risk.
After making appropriate enquiries, which included a review of
the annual budget, considering the cash flow requirements for
the foreseeable future and the effects of sales sensitivity on the
Company’s funding plans, the Directors continue to believe 
that the Group will have adequate resources to continue in 
operational existence for the foreseeable future and accordingly
have applied the going concern principle in drawing up the 
financial statements.
Market value of land and buildings
Whilst the market values of some properties differ from book
values, the Directors believe that the differences are not material.
Creditors’ payment policy and practice
The Group agrees payment terms with suppliers when it enters
into contracts for the purchase of goods or services and generally
seeks to abide by those terms when it is satisfied that the supplier
has provided the goods or services in accordance with the
agreed terms and conditions. During the last quarter of the year
terms with some trade creditors were temporarily renegotiated
but shortly after the year end returned to the normal terms. 
The number of trade creditor days at 30 June 2009 was 55 days 
(2008: 28 days).
Dividend
The Company is unable to declare a dividend.
Charitable and political contributions
The Group made no political or charitable contributions during
the year.
Employment policies
Equal opportunities
The Group is committed to providing equal opportunities in 
employment irrespective of background, age, sexual orientation,
religion, gender, nationality, marital status or disability. Our aim
is to attract the best people in the industry and we believe in
maximising every employee’s potential. The Group does not 
tolerate any harassment or discrimination.
Disabled people
The Group, in considering applications for employment from
disabled people, seeks to ensure that fair consideration is given
to the abilities and aptitudes of the applicant while having regard
to the requirements of the job for which he or she has applied.
Employees who become unable to carry out the requirements of
the job for which they have been employed are given individual
consideration and, depending on the nature, severity and duration
of the disability, may be considered for alternative work.
Communication
The Group has an open communication policy with its employees.
Regular communication on the strategy, plans and performance
of the Group is undertaken and reinforced by site meetings of
staff as well as briefings by Directors and line management. 
In the UK, employees have access to Company information 
on the intranet. Information about the Group is also available on 
the internet at www.allergytherapeutics.com.
Health & Safety
The Group is committed in providing a safe environment for its
employees and others who are engaged in or may be impacted
by the Group’s operations and considers health & safety a 
priority. Policies relating to Health & Safety are set out on the
Group’s Intranet and Staff Handbook. Procedures are monitored 
and improvements identified through periodic audits and safety
inspections. The Group’s Health and Safety Committee meets
regularly to discuss issues and promote good practice with
Health & Safety Officers promoting and monitoring safe working
conditions.
Statement of Directors’ responsibilities – 
Group Financial Statements
The Directors are responsible for preparing the Annual Report and
the Group financial statements in accordance with applicable
United Kingdom law and those International Financial Reporting 
Standards as adopted by the European Union.
Company law requires the Directors to prepare financial 
statements for each financial year which present fairly the 
financial position of the Group and the financial performance
and cash flows of the Group for that period. In preparing those
financial statements, the Directors are required to:
● select suitable accounting policies and then apply them 
consistently;
● present information, including accounting policies, in a 
manner that provides relevant, reliable, comparable and 
understandable information;
● provide additional disclosures when compliance with 
the specific requirements in IFRS’ is insufficient to 
enable users to understand the impact of particular 
transactions, other events and conditions on the 
entity’s financial position and financial performance; 
● state that the Group has complied with IFRS’, subject to 
any material departures disclosed and explained in the 
financial statements; and
● prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
company will continue in business. 23 www.allergytherapeutics.com
The Directors are responsible for keeping adequate accounting
records that disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the
Group and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities. 
Statement of Directors’ responsibilities – 
Company Financial Statements
The Directors are responsible for preparing the Annual Report and
the Group financial statements in accordance with applicable
United Kingdom law and regulations.
Company law requires the Directors to prepare financial 
statements in accordance with United Kingdom Generally 
Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable law). The financial statements are 
required by law to give a true and fair view of the state of affairs 
of the Company and of the profit or loss of the Company for that
period. In preparing those financial statements, the Directors 
are required to:
● select suitable accounting policies and then apply them 
consistently;
● make judgements and estimates that are reasonable 
and prudent; 
● state whether applicable UK Accounting Standards have 
been followed, subject to any material departures disclosed 
and explained in the financial statements; and
● prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
company will continue in business.
The Directors are responsible for keeping adequate accounting
records that disclose with reasonable accuracy at any time the 
financial position of the Company and enable them to ensure
that the financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the assets of
the Group and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities. 
In so far as the Directors are aware:
● there is no relevant audit information of which the 
Company’s auditors are unaware; and
● the Directors have taken all steps that they ought to have 
taken to make themselves aware of any relevant audit 
information and to establish that the auditors are aware of 
that information.
The Directors are responsible for ensuring compliance with the
AIM Rules.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the 
Company’s website. Legislation in the United Kingdom 
governing the preparation and dissemination of the financial
statements may differ from legislation in other jurisdictions.
Auditors
Grant Thornton UK LLP offer themselves for reappointment as
auditors in accordance with section 489 of the Companies Act
2006. A resolution for their reappointment is to be proposed at
the forthcoming Annual General Meeting.
By order of the Board on 18 September 2009.
Ian Postlethwaite
Company Secretary 24
The Remuneration Committee
The Remuneration Committee comprises Stephen Smith 
(Chairman), Ignace Goethals and Dr Virinder Nohria.  
The Committee held four meetings during the past financial
year. The principle purpose of the Committee is to determine
and agree the directors’ salary increases, annual bonuses, 
scope of pension arrangements and any changes in benefits. 
In addition, the Committee also agrees the share-related 
compensation for the directors and other executive 
management and other executive compensation matters. 
For the purpose of reaching appropriate decisions the 
Committee has used information from the Alan Jones & 
Associates ‘Pharmaceutical Salary Survey’, benchmarking 
reports from MM&K and Watson Wyatt Data Services and 
a sample taken from AIM listed pharmaceutical companies 
of similar size and value (the “Comparator Group”).
Remuneration policy
The Committee’s policy is to set remuneration packages for 
executive directors that are competitive with the market, 
allowing the Company to attract, motivate and retain executives
of the highest calibre. Remuneration packages are designed to
reward executives for performance via annual bonus payments
and awards of share-related compensation, which together 
constitute a potentially significant proportion of the total 
remuneration opportunity.
The remuneration of executive directors comprises the following
elements:
(i) Basic salary
Basic salary reflects the market rate for each position and the 
individual director’s experience and value to the business.
Salaries are reviewed annually as at 1 October, taking into 
account personal performance, and are benchmarked against
the Comparator Group.
(ii) Taxable benefits
Taxable benefits represent the provision of a car allowance 
and private medical insurance.
(iii) Share options
The share options granted to individual executive directors 
to date are disclosed later in this report and comprise grants
made in prior years under previous approved and unapproved
option schemes. Share options previously granted by Allergy 
Therapeutics (Holdings) Limited were surrendered on 5 October
2004 for share options in Allergy Therapeutics plc, 
on substantially the same terms.
(iv) Long Term Incentive Plan
During the year ended 30 June 2009 no provisional shares 
were awarded to directors and senior management under 
the Allergy Therapeutics plc 2005 Long Term Incentive Plan. 
Distribution of shares under the Plan is conditional on the 
Company’s performance over the 3-year Plan Cycle. 
The number of provisional shares awarded to executive 
directors under the Plan is shown in the Directors’ share 
option table.
(v) SAYE Plan
The 2005 SAYE Plan was open to all employees and full-time 
executive directors who had completed 12 months continuous
service at the offer date. Share options were granted at a 
discount to the share price at the date of grant. The number 
of options granted to each participant is related to the amount
which the participant has contracted to save over the 3-year 
term of the Plan. The number of share options granted to 
executive directors under the Plan is shown in the Directors’
share options table.
(vi) Bonus
In the case of the executive team the Company operates a 
performance-related cash bonus based upon individual 
performance and achievement of personal and corporate 
objectives. Annual bonus payments are capped under service
contracts at 40% for Keith Carter and 30% for all other directors
except Christian Grätz, whose bonus is uncapped. The bonus 
is determined and agreed by the Remuneration Committee in 
September each year for the preceding financial year. 
(vii) Pension arrangements
The UK Company operates a defined-contribution Personal 
Pension scheme and currently makes pension contributions
equal to 10% of salary for executive directors, with the exception
of Keith Carter for whom the Company contributes 15% of
salary. Christian Grätz is a member of the Bencard Allergie
GmbH pension scheme in Germany. 
Service contracts
Executive directors Date of contract* Notice period
Keith Carter 1 November 2003 6 months
Ian Postlethwaite 7 May 2002 12 months
Christian Grätz 1 April 2001 12 months
Tom Holdich 2 August 2004 6 months
*The above dates refer to service contracts with Allergy Therapeutics 
(Holdings) Limited and, for Christian Grätz, with Bencard Allergie GmbH. 
All the service contracts, except that of Christian Grätz, were amended on 
5 October 2004 to reflect the change of employer to Allergy Therapeutics plc.
Non-executive directors Date of contract Notice period
Ignace Goethals 8 September 2004 3 months
Stephen Smith         8 September 2004 3 months
Virinder Nohria 1 November 2005 3 months
The above contracts for Ignace Goethals and Stephen Smith 
replaced previous service contracts in respect of non-executive
director roles in the Group’s former holding Company.
The Remuneration Report 25 www.allergytherapeutics.com
Directors’ remuneration
Details of remuneration of those who served as directors during the year are set out below.
Year ended 30 June 2008
Basic Bonus for T axable
salary the year benefits Fees T otal Pension Total Pension
££££££ ££
Keith Carter 181,750 – 11,170 – 192,920 23,627 184,170 22,490
Ian Postlethwaite 140,250 – 10,782 – 151,032 14,492 143,587 13,245
Christian Grätz 177,041 – 15,466 –192,507 42,277 161,651 27,556
Tom Holdich 145,250 – 11,170 – 156,420 14,525 149,607 13,844
Ignace Goethals 33,500 – – – 33,500 – 40,000 –
Stephen Smith – – – 27 ,000 27 ,000 – 36,000 –
Virinder Nohria 31,750 – – – 31,750 – 38,000 –
T otals 709,541 – 48,588 27 ,000 785,129 94,921 753,015 77,135
Christian Grätz’ salary is paid in Euros and is shown here converted at a spot rate of £1:€1.17334 as at 30 June 2009. 26
Directors’ share options
Options Options
held at Options Options Options held at Subscription
1 July granted in exercised in lapsed in 30 June price Exercise 
2008 the year the year the year 2009 (pence) date from Expiry date
Executive directors
Keith Carter 350,000 – – – 350,000 120.0 31/07/2002 31/07/2011
175,000 – – – 175,000 5.0 18/12/2002 18/12/2012
450,000 – – – 450,000 45.0 26/02/2005 26/02/2014
199,998 – – – 199,998 100.4 08/03/2008 08/03/2015
*14,609 – – – 14,609 64.0 01/03/2009 01/09/2009
**687,656 – – 200,000 487,656 – – –
Ian Postlethwaite 400,000 – – – 400,000 30.0 03/06/2002 03/06/2012
1,000,000 – – – 1,000,000 0.1 02/10/2002 02/10/2012
1,500,000 – – – 1,500,000 5.0 17/12/2002 17/12/2012
450,000 – – – 450,000 45.0 26/02/2005 26/02/2014
99,999 – – – 99,999 100.4 03/03/2008 08/03/2015
*14,609 – – – 14,609 64.0 01/03/2009 01/09/2009
**394,691 – – 130,000 264,691 – – –
Christian Grätz 200,000 – – – 200,000 120.0 31/07/2002 31/07/2011
1,400,000 – – – 1,400,000 5.0 18/12/2002 18/12/2012
450,000 – – – 450,000 45.0 26/02/2005 26/02/2014
66,666 – – – 66,666 100.4 08/03/2008 08/03/2015
**423,320 – – 130,000 293,320 – – –
Tom Holdich 222,222 – – – 222,222 45.0 02/08/2005 02/08/2014
7,778 – – – 7,778 45.0 02/08/2005 02/08/2014
66,666 – – – 66,666 100.4 08/03/2008 08/03/2015
**401,805 – – 130,000 271,805 – – –
Non-executive directors
Ignace Goethals 1,000,000 – 1,000,000 – – 5.0 18/12/2002 18/12/2012
150,000 – – – 150,000 45.0 26/02/2005 26/02/2014
Stephen Smith 750,000 – 750,000 – – 5.0 18/12/2002 18/12/2012
150,000 – – – 150,000 45.0 26/02/2005 26/02/2014
Virinder Nohria 100,000 – – – 100,000 45.0 15/12/2003 15/12/2013
T otals 11,125,019 – 1,750,000 590,000 8,785,019
*  SAYE Scheme
** Long Term Incentive Plan
The aggregate amount of gains made by Directors upon the 
exercise of share options in the year ended 30 June 2009 was
£166,250 (year ended 30 June 2008 £185,395)
At 30 June 2009 the London Stock Exchange market value of
shares was 14p per share. The range of values during the period
from 1 July 2008 to 30 June 2009 was 6.5p to 26.5p per share.
Under a Compromise Agreement between Mr Carter and the
Company dated 11 June 2009, Mr Carter’s share options will 
remain exercisable for six or twelve months from 1 September
2009 in accordance with the rules of the various schemes. 
Mr Carter’s provisional grant of shares of 487,656 under the
Long Term Incentive Plan expired on 1 September 2009.
Stephen R Smith
Chairman, Remuneration Committee
18 September 2009 27 www.allergytherapeutics.com
We have audited the group financial statements of Allergy 
Therapeutics plc for the period ended 30 June 2009 which 
comprise the consolidated income statement, the consolidated
balance sheet, the consolidated statement of recognised income
and expense, the consolidated cashflow statement and the 
related notes. The financial reporting framework that has been
applied in their preparation is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the 
European Union.
This report is made solely to the Company’s members, as a
body, in accordance with Sections 495 and 496 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the Company and
the Company’s members as a body, for our audit work, for this
report, or for the opinions we have formed. 
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities 
Statement set out on pages 22 and 23, the directors are 
responsible for the preparation of the group financial statements
and for being satisfied that they give a true and fair view. 
Our responsibility is to audit the group financial statements in
accordance with applicable law and International Standards on
Auditing (UK and Ireland). Those standards require us to comply
with the Auditing Practices Board’s (APB’s) Ethical Standards 
for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is
provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP
Opinion on financial statements
In our opinion the group financial statements:
● give a true and fair view of the state of the group’s affairs as 
at 30 June 2009 and of its loss for the period then ended; 
● have been properly prepared in accordance with IFRS as 
adopted by the European Union; and
● have been prepared in accordance with the requirements of 
the Companies Act 2006
Separate opinion in relation to IFRSs
As explained in Note 1 to the group financial statements, 
the group in addition to complying with its legal obligation to
comply with IFRSs as adopted by the European Union, has also
complied with IFRSs as issued by the International Accounting
Standards Board (IASB).
In our opinion the group financial statements comply with IFRSs
as issued by the IASB.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for
the financial year for which the group financial statements are 
prepared is consistent with the group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report to you if, 
in our opinion:
● certain disclosures of directors’ remuneration specified by 
law are not made; or
● we have not received all the information and explanations 
we require for our audit.
Other matter
We have reported separately on the parent Company financial
statements of Allergy Therapeutics Plc for the period ended 
30 June 2009. 
Stephen P .S. Weatherseed
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Gatwick
18 September 2009
Independent Auditor’s Report to the
Members of Allergy Therapeutics plc 28
Y ear  to Y ear  to Year  to Year  to
30 June 30 June 30 June 30 June
2009 2009 2008 2008
Note £’000 £’000 £’000 £’000
Revenue 3 37 ,757 31,022
Cost of sales (13,563) (10,865)
Gross profit 24,194 20,157
Distribution costs (14,893) (12,852)
Administration expenses – other (10,250) (6,640)
Research and development costs (5,297) (16,300)
Administration expenses (15,547) (22,940)
Other income –42
Operating loss (6,246) (15,593)
Finance income 9 30 201
Finance expense 8 (5,222) (4,852)
Loss before tax (11,438) (20,244)
Income tax 10 (326) (53)
Loss for the period 28 (11,764) (20,297)
Loss per share
Basic & diluted (pence per share) 12 (14.3p) (24.8p)
The results for the year are derived solely from continuing operations.
Consolidated Income Statement
For the year ended 30 June 2009 29 www.allergytherapeutics.com
30 June 2009 30 June 2008
Note £’000 £’000
Assets
Non-current assets
Property, plant and equipment 15 7,191 6,883
Intangible assets – Goodwill 13 2,555 2,468
Intangible assets – Other 14 1,065 1,073
Investments 16 1,824 1,400
Derivative financial instruments 23 – 42
Total non-current assets 12,635 11,86
Current assets
Trade and other receivables 18 3,440 3,199
Derivative financial instruments 23 – 3
Inventories 17 6,002 5,817
Cash and cash equivalents 19 – 2,298
Total current assets 9,442 11,317
T otal assets 22,077 23,183
Liabilities
Current liabilities
Trade and other payables 20 (8,950) (4,760)
Current borrowings 21 (11,652) (2,422)
Derivative financial instruments 23 (1,172) (923)
Total current liabilities (21,774) (8,105)
Net current assets (12,332) 3,212
Non current liabilities
Retirement benefit obligation 25 (2,821) (2,324)
Non current borrowings 21 (19,255) (23,413)
Derivative financial instruments 23 (1,126) (382)
Non current provisions 22 (277) (249)
Total non current liabilities (23,479) (26,368)
T otal liabilities (45,253) (34,473)
Net liabilities (23,176) (11,290)
Equity
Capital and reserves
Issued capital 26 92 92
Share premium 28 33,193 33,173
Merger reserve – shares issued by subsidiary 28 40,128 40,128
Reserve – shares held by EBT 28 67 (1)
Reserve – share based payments 28 1,291 1,031
Revaluation reserve 28 189 165
Foreign exchange reserve 28 (1,113) (628)
Retained earnings 28 (97 ,023) (85,250)
T otal equity (23,176) (11,290)
These financial statements were approved by the Board of Directors on 18 September 2009 and were signed on its behalf by: 
Consolidated Balance Sheet
Manuel Llobet Ian Postlethwaite
Chief Executive Officer Finance Director   30
Y ear to Year to
30 June 30 June
2009 2008
Note £’000 £’000
Actuarial gain / (loss) on defined benefit pension scheme 25 (9) 576
Exchange differences on translation of foreign operations (485) (495)
Revaluation gains / (losses) (24) 61
Net (losses) / profits recognised directly in equity (470) 20
Loss for the period (11,764) (20,297)
T otal recognised income and (expense) (12,234) (20,277)
Consolidated Statement of Recognised 
Income and Expense 31 www.allergytherapeutics.com
Y ear to Year to
30 June 30 June
2009 2008
Note £’000 £’000
Cash flows from operating activities
Loss before tax (11,438) (20,244)
Adjustments for:
Foreign exchange gain 28 (485) (495)
Finance income 9 (30) (201)
Finance expense 8 3,236 1,972
Exchange loss on retranslation of loan 8 1,986 2,880
Non cash movements on defined benefit pension plan 107 158
Depreciation and amortisation 14, 15 1,315 1,159
Charge for share based payments 260 356
Financial derivative instruments 1,038 1,261
Disposal of property, plant and equipment 41 (1)
Decrease in trade and other receivables 18 (241) 174
Increase in inventories 17 (185) (906)
(Decrease) / increase in trade and other payables 4,313 (5,246)
Net cash used in operations (83) (19,133)
Interest paid (31) (136)
Income tax paid 10 (326) (53)
Net cash used in operating activities (440) (19,322)
Cash flows from investing activities
Interest received 9 30 201
Investments 16 (296) (256)
Payments for intangible assets (295) (151)
Payments for property plant and equipment (1,426) (2,472)
Net cash used in investing activities (1,987) (2,678)
Cash flows from financing activities
Proceeds from issue of equity shares 28 88 35
Net proceeds from borrowings 2,262 20,411
Bank loan fees and interest paid (2,247) (1,844)
Net cash generated by financing activities 103 18,602
Net decrease in cash and cash equivalents (2,324) (3,398)
Cash and cash equivalents at the start of the period 2,298 5,696
Cash and cash equivalents at the end of the period 19, 21 (26) 2,298
Consolidated Cash Flow Statement 32
1.  BASIS OF PREPARATION
The Group’s financial statements have been prepared in 
accordance with International Financial Reporting Standards
(IFRS) in issue as adopted by the European Union (‘EU’) and 
applied in accordance with the Companies Act 2006. 
The consolidated financial statements have been prepared under
the historical cost convention except for derivative financial 
instruments and investment assets which have been measured
at fair value.
Standards, amendments and interpretations to existing 
standards that are not yet effective and have not been early
adopted by the Group in the 30 June 2009 financial statements
At the date of authorisation of these financial statements, 
certain new Standards, amendments and interpretations to 
existing standards have been published but are not yet effective. 
The Group has not adopted any of these pronouncements early.
The new Standards, amendments and interpretations that are
expected to be relevant to the Group’s financial statements are
as follows:
IAS 1 Presentation of Financial Statements (Revised 2007) 
(effective for reporting periods beginning on or after 
1 January 2009)
This amendment affects the presentation of owner changes in
equity and introduces a statement of comprehensive income.
Preparers will have the option of presenting items of income 
and expense and components of other comprehensive income
either in a single statement of comprehensive income with
subtotals, or in two separate statements (a separate income
statement followed by a statement of other comprehensive 
income).
This amendment does not affect the financial position or 
results of the Group but will give rise to additional disclosures. 
Management is currently assessing the detailed impact of this
amendment on the Group’s financial statements.
IAS 23 (Revised) Borrowing Costs (effective for accounting 
periods beginning on or after 1 January 2009)
The option to recognise immediately, as an expense, 
the borrowing costs that relate to assets that take a substantial
period of time to get ready for use or sale is removed. 
All borrowing costs thus arising must therefore be capitalised.
Management is currently assessing the detailed impact of this
amendment on the Group’s financial statements.
IFRS 3 Business Combinations (Revised 2008) and IAS 27 
Consolidated and Separate Financial Statements (Revised 2008)
(effective for reporting periods beginning on or after 
1 July 2009)
The revised Standards introduce major changes to the accounting
treatment for business combinations, transactions with 
non-controlling interests (a new term for minority interests) 
and a loss of control of a subsidiary. Management are currently
assessing the detailed impact of this amendment on the Group’s 
financial statements.
IFRS 8 Operating segments (effective for reporting periods 
beginning on or after 1 January 2009)
This IFRS specifies how an entity should report information
about its operating segments in its financial statements. 
Generally, financial information is required to be reported on 
the same basis as is used internally for evaluating operating 
segment performance and deciding how to allocate resources 
to operating segments. Implementation of this standard is 
expected to increase the number of reportable segments as 
well as the manner in which the segments are reported. 
i.e in a manner that is consistent with the internal reporting 
provided to the chief operating decision-maker. As goodwill 
is allocated to groups of cash generating units based on 
segment level, the change will also require the reallocation 
of goodwill to the newly identified operating segments. 
Management does not anticipate that this will result in any 
material impairment of goodwill.
IFRIC 14 – IAS 19 – The Limit on a Defined Benefit Asset, 
Minimum Funding Requirements and their Interaction 
(effective 1 January 2009)
This IFRIC addresses the interaction between minimum funding
requirements (which are commonly imposed by laws and 
regulations in some jurisdictions) and the measurement of a 
defined benefit asset. Management are currently assessing the
detailed impact of this amendment on the Group’s financial
statements.
IFRS 2 amendment to share based payments
The revised Standard will apply retrospectively from 1st January
2009 and specifies that all cancellations of share based payment
arrangements, including those by an employee or other 
counterparty, should receive the same accounting treatment of
requiring immediate recognition in the income statement of 
the charge that would otherwise have been recognised over the
remainder of the service period.
Management anticipate that all the above pronouncements will
be adopted in the Group’s financial statements for the period 
beginning 1 July 2009.
Other new Standards and Interpretations have been issued but
are not expected to have a material impact on the Group’s 
financial statements.
Going concern
The Group incurred losses for the financial years ended 2007 to
2009 primarily as a consequence of its investment in research
and development activities; these losses have been funded by
equity issues, debt facilities and cash generated by the operating
business.
The Group has prepared detailed budgets, including cash flow
projections, for the periods ending 30 June 2010 to 30 June
2012. These projections include assumptions on the trading 
performance of the operating business and the continued 
availability of the existing debt facilities. After making 
appropriate enquiries, which included a review of the annual
budget, by considering the cash flow requirements for the 
Notes to the Financial Statements  33 www.allergytherapeutics.com
foreseeable future and the effects of sales and other sensitivities
on the Company’s funding plans, the Directors continue to 
believe that the Group will have adequate resources to continue
in operational existence for the foreseeable future and 
accordingly have applied the going concern principle in drawing
up the financial statements. In reaching this view, the Directors
have considered and prioritised the actions that could be taken
to offset the impact of any shortfall in operating performance.
2.  ACCOUNTING POLICIES
Consolidation
Subsidiaries are all entities over which the Group has the 
power to govern the financial and operating policies, generally 
accompanying a shareholding of over one half of the voting
rights. The existence and effect of potential voting rights that 
are currently exercisable or convertible are considered when 
assessing whether the Group controls another entity. 
Subsidiaries are fully consolidated from the date on which 
control is transferred to the Group. They are deconsolidated 
on the date control ceases.
The Group uses the purchase method of accounting for the 
acquisition of a subsidiary. The cost of an acquisition is measured
by the fair value of the assets given, equity instruments issued
and liabilities incurred or assumed at the date of exchange, 
plus costs directly attributable to the acquisition.  Identifiable 
assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair 
values at the acquisition date irrespective of the extent of any
minority interest. The excess of the cost of acquisition over the
fair value of the Group’s share of the identifiable net assets 
acquired is recorded as goodwill. If the cost of the acquisition 
is less than the fair value of the net assets of the subsidiary 
acquired the difference is recognised directly in the income
statement.
Inter-Company transactions, balances and unrealised gains and
losses on transactions between Group companies are eliminated
except for unrealised losses if they show evidence of impairment.
Goodwill
Goodwill arising from business combinations is the difference
between the fair value of the consideration paid and the fair
value of the assets and liabilities and contingent liabilities 
acquired. It is initially recognised as an intangible asset at cost
and is subject to impairment testing on an annual basis or more
frequently if circumstances indicate that the asset may have
been impaired. Details of impairment testing are described in 
the accounting policies. 
Intangible assets 
Acquired as part of a business combination
Intangible assets acquired in a business combination are identified
and recognised separately from goodwill where they satisfy the
definition of an intangible asset and their fair values can be
measured reliably. The cost of such intangible assets is their fair
value at the acquisition date.
Subsequent to initial recognition, intangible assets acquired in 
a business combination are reported at cost less accumulated
amortisation and accumulated impairment losses.
Internally generated intangible assets
An internally generated intangible asset arising from development
(or the development phase) of an internal project is recognised
if, and only if, all of the following have been demonstrated:
● the technical feasibility of completing the intangible asset so 
that it will be available for use or sale
● the intention to complete the intangible asset and use or sell it
● the ability to use or sell the intangible asset
● how the intangible asset will generate probable future 
economic benefits
● the availability of adequate technical, financial and other 
resources to complete the development and to use or sell the 
intangible asset
● the ability to measure reliably the expenditure attributable to 
the intangible asset during its development.
The amount initially recognised for internally generated intangible
assets is the sum of the expenditure incurred from the date
when the intangible asset first meets the recognition criteria
listed above. Where no internally generated intangible asset can
be recognised, research and development expenditure is
charged to profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally generated intangible
assets are reported at cost less accumulated amortisation and
accumulated impairment losses. Amortisation of these assets is
calculated on a straight line basis over the useful economic life
using the following annual rates:
Manufacturing know-how 15 years
Non-competing know-how 4 years
Other intangibles 15 years
Computer software 7 years
These periods were selected to reflect the various assets’ useful
economic lives to the Group.
The cost of amortising intangible assets is included within 
administration costs on the consolidated income statement.
Segmental reporting 
A business segment is a group of assets and operations 
engaged in production that is subject to risks and returns that
are different from those of other business segments. 
A geographical segment is engaged in production within a 
particular economic environment that is different from that in
segments operating in other economic environments.
The Group’s one principal activity is the research, development,
manufacturing, marketing and sales of allergy treating drugs.
This forms the single business stream and primary reporting
segment. The Group’s secondary reporting segment is 
geographical and is based both on customer location and 
country of origin. 34
Foreign currency translation
Functional and presentational currency
Items included in the financial statements of each of the Group’s
entities are measured using the currency of the primary economic
environment in which the entity operates (the functional 
currency). The Group’s presentational currency is Sterling.
Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation at
reporting period end exchange rates of monetary assets and 
liabilities denominated in foreign currencies are recognised in
the income statement.
Group companies
The results and financial position of all Group entities that have
a functional currency different from the presentation currency
are translated into the presentation currency as follows:
● Assets and liabilities for each balance sheet presented are 
translated at the closing rate at the date of the balance sheet;
● Income and expenses for each income statement are 
translated at actual exchange rates or using an average rate 
as an approximation;
● All resulting exchange differences are recognised as a 
separate component of equity.
On consolidation, exchange differences arising from the 
translation of the net investment in foreign entities are taken 
to equity. The Group has taken advantage of the exemption in 
IFRS 1 which allows all foreign exchange differences on 
consolidation to be set at zero at transition and the foreign 
exchange reserve therefore only shows post transition foreign
exchange differences.
Income recognition
Revenue is measured by reference to the fair value of consideration
received or receivable by the Group for goods supplied and 
services provided, net of statutory rebates paid in Germany and
excluding value added tax. Revenue is recognised upon the 
performance of services or transfer of risk to the customer. 
Sale of goods
Revenue from the sale of goods is recognised when all the 
following conditions have been satisfied:
● the Group has transferred to the buyer the significant risks 
and rewards of ownership of the goods which is generally 
when the customer has physically received the goods.
● the Group retains neither continuing managerial involvement 
to the degree usually associated with ownership nor effective 
control over the goods sold which is again when the 
customer has physically received the goods.
● the amount of revenue can be measured reliably.
● it is probable that the economic benefits associated with the 
transaction will flow to the Group, and 
● the costs incurred or to be incurred in respect of the 
transaction can be measured reliably.
Royalties
Royalties are recognised on an accruals basis in accordance with
the substance of the relevant agreement.
Milestones
Revenues with performance milestones are received from our 
licensees in Canada and are treated as royalties. These are
recognised on the satisfactory occurrence of critical events as
pre-defined in the relevant agreement.
Expenditure recognition
Operating expenses are recognised in the income statement
upon utilisation of the service or at the date of their origin. 
Borrowing costs
All borrowing costs are expensed to the income statement on an
accruals basis using the effective interest method. 
Property, plant and equipment
Property, plant and equipment are stated at historical cost less
accumulated depreciation and accumulated impairment losses.
Provision for depreciation of all tangible assets of the Group is
made over their estimated useful lives, principally using the 
following annual rates:
Buildings 10 years
Computer equipment 3 – 7 years
Motor vehicles 4 years
Fixtures and fittings 5 – 10 years
Plant and equipment 5 – 10 years
Asset residual values and useful lives are reviewed annually and
amended as necessary. Assets are reviewed for impairment
whenever events or changes in circumstances indicate that the
carrying amount of the fixed asset may not be recoverable. 
An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount exceeds the
higher of the asset’s fair value less costs to sell or value in use.
Assets under course of construction are capitalised but not 
depreciated. Once the asset is ready for use, it is transferred to
the relevant heading and depreciated accordingly. This category
consists of plant and machinery which is being constructed with
the intention of bringing these assets into the production line
over the next two to three years. 
Impairment
The Group’s goodwill, other intangible assets and property plant
& equipment are subject to impairment testing.
For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash
flows (cash generating units). Goodwill is allocated to those cash
generating units that are expected to benefit from synergies of
the related business combination and represent the lowest level
within the Group at which management controls the related cash
flows.
Individual assets or cash generating units that include goodwill
with an indefinite useful life or those not yet available for use 
are tested for impairment at least annually. All other individual 35 www.allergytherapeutics.com
assets or cash generating units are tested for impairment 
whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the
assets or cash generating units carrying amount exceeds its 
recoverable amount. The recoverable amount is the higher of
fair value, reflecting market conditions less costs to sell and
value in use, based on an internal discounted cash flow 
evaluation. Impairment losses recognised for cash generating
units, to which goodwill has been allocated, are credited initially
to the carrying amount of goodwill. Any remaining impairment
loss is charged pro rata to the other assets in the cash 
generating unit. With the exception of goodwill, all assets are
subsequently reassessed for indications that an impairment 
loss previously recognised may no longer exist. 
Inventories
Inventory is carried at the lower of cost or net realisable value.
The costs of raw materials, consumables, work in progress and
finished goods are measured by means of weighted average
cost using standard costing techniques. Cost of finished goods
comprises direct production costs such as raw materials, 
consumables, utilities and labour, and production overheads
such as employee costs, depreciation, maintenance and indirect
factory costs. Standard costs are reviewed regularly in order to
ensure relevant measures of utilisation, production lead time
and appropriate levels of manufacturing expense are reflected 
in the standards.
Net realisable value is calculated based on the revenue from 
sale in the normal course of business less any costs to sell.
Leases
Operating leases are deemed to be those leasing agreements
which do not transfer to the Group substantially all the benefits
and risks of ownership of an asset. Operating lease rentals are
charged to the income statement over the term of the lease.
There are no finance leases.
Financial assets
Financial assets consist of loans and receivables, which consist
of cash and trade and other receivables. Financial assets are 
assigned to their different categories by management on initial
recognition, depending on the contractual arrangements.
Cash and cash equivalents comprise cash on hand, demand 
deposits and overdrafts, together with other short-term, highly
liquid investments that are readily convertible into known
amounts of cash and which are subject to an insignificant risk 
of changes in value.
All financial assets are recognised when the Group becomes 
a party to the contractual provisions of the instrument and 
are initially recognised at fair value plus transaction costs, 
and subsequently at amortised cost.
Derecognition of financial assets occurs when the rights to 
receive cash flows from the investments expire or are 
ransferred and substantially all of the risks and rewards of 
ownership have been transferred. An assessment for 
impairment is undertaken at least at each balance sheet date
whether or not there is objective evidence that a financial asset
or a group of financial assets is impaired.
Financial liabilities
The Group’s financial liabilities include bank loans, trade and
other payables. 
Financial liabilities are recognised when the Group becomes a
party to the contractual provisions of the instrument. All interest
related charges are recognised as an expense in ‘Finance costs’
in the income statement.
Trade and other payables are recognised initially at their fair
value and subsequently measured at amortised cost using the
effective interest method.
Borrowings comprise secured bank borrowings, and are initially
recognised at the fair value of the consideration received net 
of issue costs associated with the borrowings. After initial 
recognition, interest-bearing loans and borrowings are 
subsequently measured at amortised cost using the effective 
interest rate method.
Derivative financial instruments
The Group uses interest rate swaps, Euro forward contracts and
Euro exchange swaps to manage the exposure to changes in 
interest and translation rates and these are classified as 
derivative financial instruments. All derivative financial 
instruments are initially measured at fair value on acquisition
and are subsequently restated to fair value at each reporting
date. Any change in the fair value of the instruments is 
recognised in the Income Statement.
Equity
Equity comprises the following:
● “Issued capital” represents the nominal value of equity 
shares that have been issued.
● “Share premium” represents the excess over nominal value 
of the fair value of consideration received for equity shares, 
net of expenses of the share issue.
● “Merger reserve” represents shares issued by the 
subsidiaries.
● “Reserve - Shares held in EBT” represent the shares acquired 
by a trust set up for the benefit of the Group’s employees. 
These shares are deducted from shareholders funds at the 
cost that the shares were acquired. The net proceeds received
from the issue of these shares through the exercise of options
are also recognised through this reserve. 
● “Share based payments reserve” represents equity-settled 
share-based employee remuneration until such share options 
are exercised.
● “Revaluation reserve” represents the revaluations of 
investment assets.
● “Foreign Exchange reserve” represents the foreign currency 
translation differences that have occurred since the transition 
date in respect of the retranslation of foreign operations. 
Exchange differences prior to this date are included within 
retained earnings.
● “Retained earnings” represents retained profits and losses. 36
Income taxes
Current income tax assets and liabilities comprise those 
obligations to fiscal authorities in the countries in which the
Group carries out its operations. They are calculated according
to the tax rates and tax laws applicable to the fiscal period and
the country to which they relate. All changes to current tax 
liabilities are recognised as a component of tax expense in the
income statement.
Deferred income taxes are calculated using the liability method
on temporary differences.  Deferred tax is generally provided 
on the difference between the carrying amounts of assets and 
liabilities and their tax bases.  However, deferred tax is not 
provided on the initial recognition of goodwill, nor on the initial
recognition of an asset or liability unless the related transaction
is a business combination or affects tax or accounting profit.
Deferred tax on temporary differences associated with shares 
in subsidiaries and joint ventures is not provided if reversal of
these temporary differences can be controlled by the Group 
and it is probable that reversal will not occur in the foreseeable
future.  In addition, tax losses available to be carried forward as
well as other income tax credits to the Group are assessed for
recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting.
Deferred tax assets are recognised to the extent that it is 
probable that the underlying deductible temporary differences
will be able to be offset against future taxable income. Current
and deferred tax assets and liabilities are calculated at tax rates
that are expected to apply to their respective period of realisation,
provided they are enacted or substantively enacted at the 
balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a
component of tax expense in the income statement, except
where they relate to items that are charged or credited directly to
equity (such as the revaluation of land) in which case the related
deferred tax is also charged or credited directly to equity.
Defined Benefit Pension Scheme
Scheme assets are measured at fair values. The expected return
on plan assets is determined based on market expectations.
Scheme liabilities are measured on an actuarial basis using the
projected unit credit method and are discounted at appropriate
high quality corporate bond rates that have terms to maturity 
approximating to the terms of the related liability. Appropriate
adjustments are made for past service costs. Past service cost 
is recognised as an expense on a straight-line basis over the 
average period until the benefits become vested. To the extent
that benefits are already vested the Group recognises past 
service cost immediately.
Actuarial gains and losses are recognised immediately through
the statement of recognised income and expense (SORIE).
The net surplus or deficit is presented with other net assets on
the balance sheet. The related deferred tax is shown with other
deferred tax balances. A surplus is recognised only to the extent
that it is recoverable by the Group.
The current service cost, past service cost and costs from 
settlements and curtailments are charged against administrative
expenses in the income statement.  Interest on the scheme 
liabilities and the expected return on scheme assets are included
in other finance costs. 
Short-term employee benefits, including holiday entitlement 
are included in current pension and other employee obligations
at the undiscounted amount that the Group expects to pay as a 
result of the unused entitlement.
Defined Contribution Pension Scheme
The amounts charged as expenditure for the defined contribution
scheme represent the contributions payable by the Group for the
accounting period in respect of this scheme.
Investments
Investments relate to long-term insurance policies that cannot 
be directly deducted from the German pension obligation. 
These are recognised as a separate asset, rather than as a 
deduction in determining the defined benefit liability. 
Investment gains and losses are taken via the statement of
recognised income and expense  to the revaluation reserve 
except where they relate to foreign exchange gains and losses
when they are taken to the foreign exchange reserve.
Provisions
Provisions are recognised when the present obligations arising
from legal or constructive obligations resulting from past events,
will probably lead to an outflow of economic resources from the
Group which can be estimated reliably.
Provisions are measured at the present value of the estimated
expenditure required to settle the present obligation, based on
the most reliable evidence available at the balance sheet date.
All provisions are reviewed at each balance sheet date and 
adjusted to reflect the current best estimates.
Share based employee compensation
The Group operates equity settled share based compensation
plans for remuneration of its employees.
All employee services received in exchange for the grant of any
share based compensation are measured at their fair values.
These are indirectly determined by reference to the share rights
awarded. Their value is appraised at the grant date and excludes
the impact of any non-market vesting conditions (e.g. profitability
or sales growth targets).
All share based compensation is ultimately recognised as an 
expense in profit and loss with a corresponding credit to the
share based payments reserve, net of deferred tax where 
applicable. If vesting periods or other vesting conditions apply,
the expense is allocated over the vesting period, based on the
best available estimate of the number of shares options 
expected to vest. Estimates are subsequently revised if there is
any indication that the number of share options expected to 
vest differs from previous estimates. No adjustment to expense
recognised in prior periods is made if fewer share options 
ultimately are exercised than estimated.
Upon exercise of share options, the proceeds received, net of
any directly attributable transaction costs, up to the nominal
value of the shares issued are allocated to share capital with 
any excess being recorded as share premium. 37 www.allergytherapeutics.com
Employee Benefit T rust
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 equity on the balance sheet at the
cost of acquisition.
Use of accounting estimates and judgements
Many of the amounts included in the financial statements involve
the use of judgement and/or estimation. These judgements and
estimates are based on management’s best knowledge of the
relevant facts and circumstances, having regard to prior 
experience, but actual results may differ from the amounts 
included in the financial statements. Information about such
judgements and estimation is contained in the accounting 
policies and/or the notes to the financial statements and the key
areas are summarised below:
Judgements in applying accounting policies
a) Identification of functional currencies requires analysis of the 
economic environments of the subsidiaries of the Group and 
the selection of the presentational currency must reflect the 
requirements of the users of those statements.
b) During the year the Group earned milestone payments to the 
value of £282k (2008: £2,701k). This has been recognised as 
revenue in accordance with the terms of the contract.
c) Capitalisation of development costs requires analysis of the 
technical feasibility and commercial viability of the project 
concerned. Capitalisation of the costs will be made only 
where there is evidence that an economic benefit will accrue 
to the Group. To date no development costs have been 
capitalised and all costs have been expensed in the Income 
statement as research and development expenditure, £5.3m 
(2008: £16.3m).
Sources of estimation uncertainty
a) Depreciation rates are based on estimates of the useful lives 
and residual values of the assets involved.
b) Estimates of future profitability are required for the decision 
whether or not to create a deferred tax asset. 
c) Estimates are required as to asset carrying values and 
impairment charges.
d) Determining whether goodwill is impaired requires an 
estimation of the value in use of the cash generating unit to 
which the goodwill has been allocated. This value in use 
calculation requires an estimation of the future cash flows 
expected to arise from the cash generating unit and a suitable
discount rate in order to calculate the present value.
3.  REVENUE
An analysis of revenue by category is set out in the table below:
2009 2008
£’000 £’000
Sale of goods 35,643 26,476
Royalties 1,832 1,845
Milestones 282 2,701
37 ,757 31,022
4.  SEGMENTAL REPORTING
The Group’s sole principal activity is the research, development,
manufacturing, marketing and sale of allergy treating 
pharmaceuticals. This forms the single business stream and 
primary reporting segment. 
The Group’s secondary reporting segments are based on 
geographical location. The following table provides a breakdown
of the Group’s sales by geographical market irrespective of the
origin of the products and are shown net of inter-segmental
sales of £31,145k (2008: £23,602k):
Y ear to Year to
30 June 30 June
2009 2008
£’000 £’000
Germany 27 ,724 20,596
Rest of Europe 8,798 6,763
North America 894 3,346
Asia 341 317
37 ,757 31,022
The following table provides a breakdown of the Group’s sales
by the country of origin of the products sold:
Y ear to Year to
30 June 30 June
2009 2008
£’000 £’000
Germany 27 ,724 20,596
Rest of Europe 5,846 4,734
UK 4,187 5,692
37 ,757 31,022
The following analysis shows the carrying value of the assets,
excluding cash and cash equivalents, and the additions to those
assets in each of the segments:
Carrying amount of Additions to property,
segment assets plant & equipment and 
intangible assets
Y ear to Year to Y ear to Year to
30 June 30 June 30 June 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Germany 4,111 3,511 70 96
Rest of Europe 1,282 1,539 47 19
UK 16,684 15,835 1,516 2,289
22,077 20,885 1,633 2,404 38
5.  LOSS BEFORE TAX
2009 2008
£’000 £’000
Loss for the period has been arrived at after charging/(crediting):
Foreign exchange loss 485 495
Depreciation and amortisation:
Depreciation of property plant and 
equipment (Note 15) 1,008 909
Amortisation of intangible assets
(Note 14) 307 250
Research and development 5,297 16,300
Employee benefits expense:
Employee costs (Note 7) 16,110 14,092
Land and buildings held under
operating leases 518 387
Other operating leases 620 448
Audit and non-audit services:
Fees payable to the Company’s auditor 
for the audit of the Group accounts 21 25
Fees payable to the Company’s auditor 
and its associates for other services:
The audit of the Company’s subsidiaries 
pursuant to legislation 75 97
Tax services 11 (6)
Other services pursuant to legislation 51 31
Share based payment expense 
(Note 27) 260 356
6.  REMUNERATION OF KEY MANAGEMENT PERSONNEL
2009 2008
£’000 £’000
Salaries and short-term employee benefits 865 753
Post employment benefits – 
defined benefit plans 42 28
Post employment benefits – 
defined contribution plans 53 49
Share based payment 104 194
1,064 1,024
7 .  EMPLOYEES 
2009 2008
£’000 £’000
Employee costs:
Wages and salaries 13,473 11,611
Social security costs 1,970 1,713
Share based payments 260 356
Pension costs – defined benefit plans 233 204
Pension costs – defined contribution plans 174 208
16,110 14,092
The average number of employees during the period was made
up as follows:
2009 2008
R & D, marketing and administration 125 126
Sales 71 69
Production 178 167
374 362
8.  FINANCE EXPENSE
2009 2008
£’000 £’000
Interest on facility borrowing and 
short term loans 3,045 1,724
Bank interest on overdraft 24 120
Employee defined benefit scheme
interest expense 167 128
Other charges 1,986 2,880
5,222 4,852
Other charges represent the exchange loss arising on the 
year-end translation of the Euro denominated borrowing facility. 39 www.allergytherapeutics.com
9.  FINANCE INCOME
2009 2008
£’000 £’000
Bank interest 30 201
10.  INCOME TAX EXPENSE
2009 2008
£’000 £’000
Current T ax: 
Overseas tax 326 53
Tax charge for the period 326 53
The tax assessed for the period is higher than the standard rate
of corporation tax as applied in the respective trading domains
where the Group operates. The differences are explained below:
2009 2008
£’000 £’000
Loss for the period before tax (11,438) (20,244)
Loss for period multiplied by the 
respective standard rate of 
corporation tax applicable in each 
domain (average 28%). (3,203) (5,972)
Effects of: 
Disallowable expenses 184 365
Capital allowances in excess of 
depreciation (170) (228)
Other differences, adjustments and 
movements 52 51
Tax losses (utilised) 51 (349)
Allowances for R&D expenditure (778) (55)
Tax losses not utilised 4,170 6,266
Adjustment for different tax rates 67 32
Relief for shares acquired by employees 
and Directors (47) (57)
Tax charge for the period 326 53
11.  UNRECOGNISED DEFERRED TAX
2009 2009 2008 2008
Deferred Deferredtax Deferred Deferred tax
tax assets liabilities tax assets liabilities
£’000 £’000 £’000 £’000
Non Current Assets
Property, plant  
and equipment – (652) – (520)
Derivative financial 
instruments – – 258 –
Current Liabilities
Derivative financial 
instruments 328 –– –
Non Current Liabilities
Pension and other 
employee obligations 789 – 270 –
Derivative financial 
instruments 315 – 107 –
Unused tax losses 20,262 16,458 –
21,694 (652) 17,093 (520)
Offset (652) 652 (520) 520
T otal 21,042 – 16,573 –
No deferred tax has been provided for in respect of these 
temporary differences. 12.  LOSS PER SHARE
2009 2008
£’000 £’000
Loss for the period attributable 
to equity shareholders (11,764) (20,297)
Shares Shares
‘000 ‘000
Issued ordinary shares at start of the period 81,951 81,951
Ordinary shares issued in the period 416 –
Issued ordinary shares at end of the period 82,367 81,951
Weighted average number of shares 
in issue for the period. 81,985 81,951
Basic and diluted loss per share (pence) (14.3p) (24.8p)
The diluted loss per share does not differ from the basic loss per
share as the exercise of share options would have the effect of
reducing the loss per share and is therefore not dilutive under
the terms of IAS 33.
On 1 July 2009 181,631,937 ordinary shares of 0.1p each issued
pursuant to an Offer, Placing and Subscription at a price of 12p
per ordinary share were admitted to trading on AIM having been
approved by shareholders of the Company in General Meeting
on 30 June 2009. On 10 July, 12,500,000 ordinary shares of 0.1p
each issued pursuant to the exercise of a Warrant by Azure 
Ventures Limited were admitted to trading on AIM. The total 
issued share capital of the Company on 10 July was 276,498,551 
ordinary shares.
13.  GOODWILL 
2009 2008
£’000 £’000
At 1 July 2,468 2,295
Exchange difference 87 173
At 30 June 2009 2,555 2,468
For the purposes of impairment testing of goodwill, the directors
recognise the Group’s Cash Generating units (“CGU”) to be the
following:
2009 2008
£’000 £’000
Germany 2,555 2,468
The recoverable amount for the cash-generating unit above 
was determined based on a value-in-use calculation, covering a
detailed three-year forecast of future cash flows using budgeted
projections assuming a 12% discount rate reflecting the Group’s
weighted average cost of capital. Key assumptions include sales
growth, which has been determined based on past experience 
in this market. The Group’s management believes that this is 
the best available input for forecasting this mature market. 
Apart from the considerations described in determining the
value in use of the cash generating unit described above, 
the Group’s management is not currently aware of any other
probable changes that would necessitate changes in its key 
estimates. At each half-year end the directors have reviewed 
the goodwill for possible impairment and concluded that no 
impairment provision is required.
40 41 www.allergytherapeutics.com
14.  INTANGIBLE ASSETS
Manufacturing Non-competing                   Other             Computer 
know-how know-how intangibles software Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 July 2007 1,000 2,978 954 1,066 5,998
Additions – – – 151 151
Foreign exchange – 438 38 60 536
At 30 June 2008 1,000 3,416 992 1,277 6,685
Additions – – – 295 295
Foreign exchange – 218 19 32 269
At 30 June 2009 1,000 3,634 1,011 1,604 7 ,249
Amortisation
At 1 July 2007 600 2,978 640 621 4,839
Charge for the year 67 – 51 132 250
Foreign exchange – 438 36 49 523
At 30 June 2008 667 3,416 727 802 5,612
Charge for the year 66 0 51 190 307
Foreign exchange 0 218 18 29 265
At 30 June 2009 733 3,634 796 1,021 6,184
Net book value
At 1 July 2007 400 – 314 445 1,159
At 30 June 2008 333 – 265 475 1,073
At 30 June 2009 267 – 215 583 1,065 42
15.  PROPERTY, PLANT AND EQUIPMENT
Assets under Freehold
Plant &        Fixtures & Motor           Computer course of land & 
machinery         fittings vehicles equipment construction buildings Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 July 2007 4,179 2,920 16 1,571 – 263 8,949
Additions 424 420 – 228 1,182 – 2,254
Asset reclassification (647) (7) – (267) 921 – –
Foreign exchange 14 76 – 14 – 46 150
Disposals 6 (3) –––– 3
At 30 June 2008 3,976 3,406 16 1,546 2,103 309 11,356
Additions 810 116 20 161 231 – 1,338
Asset reclassification 204 (11) – 214 (407) – –
Foreign exchange 8 40 – 36 0 23 107
Disposals – (3) – (60) 0 – (63)
At 30 June 2009 4,998 3,548 36 1,897 1,927 332 12,738
Depreciation
At 1 July 2007 1,616 848 5 754 – 240 3,463
Charge for the year 276 420 3 184 – 26 909
Foreign exchange 9 45 – 3 – 42 99
Disposals 5 (3) –––– 2
At 30 June 2008 1,906 1,310 8 941 - 308 4,473
Charge for the year 360 442 6 200 – – 1,008
Foreign exchange 5 28 – 32 – 23 88
Disposals – (1) – (21) – – (22)
At 30 June 2009 2,271 1,779 14 1,152 – 331 5,547
Net book value
At 1 July 2007 2,563 2,072 11 817 – 23 5,486
At 30 June 2008 2,070 2,096 8 605 2,103 1 6,883
At 30 June 2009 2,727 1,769 22 745 1,927 1 7 ,191
All assets in the UK are secured under the Group’s UK borrowings.
In June 2009 an impairment review has been carried out on the
assets under course of construction. The recoverable amount for
these assets was determined based on a value-in-use calculation,
covering a detailed three-year forecast of future cash flows using
budgeted projections assuming a 12% discount rate reflecting
the Group’s weighted average cost of capital. Key assumptions
include sales growth, which has been determined based on past
experience. The Group’s management believes that this is the
best available input for forecasting this mature market. 
Apart from the considerations described in determining the
value in use of the cash generating unit described above, 
the Group’s management is not currently aware of any other
probable changes that would necessitate changes in its key 
estimates. At each half-year end the directors have reviewed the
assets under the course of construction for possible impairment
and concluded that no impairment provision is required. 43 www.allergytherapeutics.com
16.  INVESTMENTS
The Group carries an insurance policy which is designed to 
contribute towards the obligation in respect of the defined 
benefit pension scheme. It is valued at fair value (market price)
by the Group’s actuaries each year.
2009 2008
£’000 £’000
At 1 July 1,400 1,011
Additions 296 256
Gains / (losses) in the investment 24 (61)
Gains in foreign exchange 104 194
1,824 1,400
17 .  INVENTORIES
2009 2008
£’000 £’000
Raw materials and  consumables 1,643 1,763
Work in progress 3,707 3,620
Finished goods 652 434
6,002 5,817
The cost of inventories recognised as an expense during the
year was £13.6m (2008: £10.9m) including write-downs in the
year amounting to £2.7m (2008: £2.9m)
18.  TRADE AND OTHER RECEIVABLES
2009 2008
£’000 £’000
Trade receivables 1,742 1,956
Other receivables 378 447
VAT 164 296
Prepayments 1,156 500
3,440 3,199
All amounts due as shown above are short-term. The carrying
value of trade receivables is considered a reasonable 
approximation of fair value. All trade and other receivables 
have been reviewed for indicators of impairment. Certain trade
receivables were found to be impaired and a provision of £144k
(2008: £267k) has been recorded accordingly. Of the £144k, 
£132k is in addition to the provision of £258k booked last year 
in relation to the impaired receivable which arose due to the
non-performance of a supplier to Allergy Therapeutics Italia s.r.l.
In addition, some of the unimpaired trade receivables are past
due as at the reporting date. 
The age of financial assets past due but not impaired is as
follows:
The following financial assets were overdue by:
2009 2008
£’000 £’000
T rade receivables
Not more than 3 months 304 494
More than 3 months but not more than 6 months 66 43
More than 6 months but not more than 1 year 58 229
More than one year 135 8
563 774
Bad and doubtful debt provision
2009 2008
£’000 £’000
Balance b/f 267 57
Foreign exchange adjustments 10 –
Charge for the year 144 267
Utilised – (57)
Balance c/f 421 267
19.  CASH AND CASH EQUIVALENTS
2009 2008
£’000 £’000
Cash at bank and in hand – 2,298
20.  TRADE AND OTHER PAYABLES
2009 2008
£’000 £’000
Trade payables 3,742 2,312
Social security and other taxes 1,302 403
Other creditors 187 292
Accrued expenses and deferred income 3,719 1,753
8,950 4,760 44
21.  BORROWINGS
2009 2008
£’000 £’000
Due within one year
Facility borrowing 9,376 1,582
Short term loans 2,250 840
Overdraft 26 –
11,652 2,422
Due after more than one year
Facility borrowing 19,048 22,444
Long term loan 207 969
19,255 23,413
The facility borrowing is denominated in Euros and provided 
by The Royal Bank of Scotland plc. The interest on the loan is 
Euribor plus a variable margin. The loan is secured in favour of
The Royal Bank of Scotland plc by means of a debenture over
the Group’s assets, an Intellectual Property Rights Agreement
with Bencard Allergie GmbH and share pledge agreements with
Bencard Allergie GmbH, Allergy Therapeutics Italia s.r.l. and 
Allergy Therapeutics Iberica S.L
On 3 July 2009 £9.4m of the outstanding balance was repaid,
classifying this amount of the loan as short-term at the balance
sheet date. At the same time, the terms of the loan agreement
were revised and amended; the Group now has a  fixed term
loan of €11m (fully drawn down in July 2009) and a revolving
credit facility of €15.5m.
22.  PROVISIONS
The provision refers to a leaving indemnity reserve in Allergy
Therapeutics Italia s.r.l. Under Italian law, alongside each monthly
salary payment an amount is paid into this reserve for each 
employee. When the employee leaves the Company the accrued
amount is paid in the form of a deferred salary payment.
2009
£’000
At 1 July 2008 249
Additions in year 28
At 30 June 2009 277
23.  FINANCIAL INSTRUMENTS
Risk management
The Group manages its capital to ensure that entities within 
the Group will be able to continue as a going concern whilst 
maximising the return to stakeholders through the effective
management of liquid resources raised through share issues 
and facility loan arrangements. The IAS 39 categories of 
financial assets and liabilities included in the balance sheet 
and the headings under which they are shown are as follows:
Categories of financial instrument
2009 2008
£’000 £’000
Financial assets
Current
Derivative instruments at fair value 
through profit and loss – 3
Loans and receivables (including cash 
and cash equivalents) 2,284 4,997
Non current
Derivative instruments at fair value 
through profit and loss – 42
2,284 5,042
Financial liabilities
Current
At amortised cost (including borrowings 
and payables) (15,581) (5,026)
Derivative instruments at fair value 
through profit and loss (1,172) (923)
Non current
At amortised cost (including borrowings 
and payables) (19,532) (23,662)
Derivative instruments at fair value 
through profit and loss (1,126) (382)
(37 ,411) (29,993)
Derivative financial instruments
The Group uses derivative financial instruments to mitigate the
effects of exchange rate exposure through the use of forward 
exchange contracts and interest rate volatility through the use 
of interest rate swap arrangements. The fair value is calculated
by reference to market rates and supported by counterparty 
confirmation.
Interest rate swap
Although management consider the interest rate swaps as an 
effective hedging tool they are not formally designated as such.
They are arranged to convert 60% of the Group’s loan borrowings
from floating to fixed rates.     45 www.allergytherapeutics.com
Euro forward contracts
The Group has Euro forward contracts with its bank that are
arranged for the sale of €14,275k to purchase Sterling at an 
average blended rate of  £1:€1.2985 at future dates from July
2009 to June 2010.
Analysis of derivative financial instruments
2009 2008
£’000 £’000
Current assets
Derivative financial instruments
– Euro exchange swap – held for trading – 3
Non current assets
Derivative financial instruments
– Interest rate swap – held for trading – 42
Current liabilities
Derivative financial instruments
– Euro forward contracts – held for trading 1,172 897
– Interest rate swap – held for trading – 26
1,172 923
Non current liabilities
Derivative financial instruments
– Euro forward contracts – held for trading – 382
– Interest rate swap – held for trading 1,126 –
1,126 382
Foreign currency risk
The Group conducts most of its day to day financial activities in
either the Euro, which is the functional currency of the majority
of the active subsidiaries, or Sterling. In addition some costs are
denominated in US dollars and Canadian dollars.
The Group carries bank balances in the following currencies:
2009 2008
£’000 £’000
Sterling 862 1,812
Euro (1,084) (624)
US dollars 1 418
Canadian dollars 191 671
Slovak koruna – 13
Polish zloty 4 8
(26) 2,298
The risks resulting from transaction exposure are mitigated 
by the use of forward contracts which are used to eliminate 
approximately 70% of the exposure on a 12 month basis. 
Foreign currency denominated financial assets and liabilities,
translated into Sterling at closing rates, are as follows:
2009 2008
Sterling Euro Other Sterling Euro Other
£’000 £’000 £’000 £’000 £’000 £’000
Financial
assets 299 1,626 359 2,698 1,192 1,110
Financial
liabilities (2,016) (13,850) (887) (2,393) (3,556) –
Short (1,717) (12,224) (528) 305 (2,364) 1,110
term
exposure
Financial
assets ––– –42 –
Financial
liabilities – (20,658) – (382) (23,662) –
Long term
exposure – (20,658) – (382) (23,620) –
The following table illustrates the sensitivity of the net result for
the year and the equity of the Group with regard to its financial
assets and liabilities and the Euro to Sterling exchange rate. 
Foreign exchange movements over the last three years have
been considered and an average taken, and on this basis a 5%
movement is considered to be a reasonable benchmark.
2009 2008
£’000 £’000
If Sterling had strengthened against the Euro by 5%
Net results for the year 763 895
Equity 778 405
1,546 1,300
If Sterling had weakened against the Euro by 5%
Net results for the year (842) (639)
Equity (860) (448)
(1,702) (1,087) 46
Interest rate risk
The Group finances its operations through both equity and debt.
The main debt facility is at a floating rate of interest with an 
interest rate swap covering 60% of the debt which converts 
floating to fixed rates of interest. The following table illustrates
the sensitivity of the net result for the year and equity to possible
changes in interest rates of + 1% and – 1%, with effect from the
beginning of the year on the remaining element of borrowings.
These changes are considered to be reasonable given the 
current market conditions and the calculations are based on the
financial instruments held at each balance sheet date, all other
variables being held constant:
2009 2008
£’000 £’000 £’000 £’000
+ 1% - 1% + 1% - 1%
Net results for the year (138) 138 (83) 83
Equity –– ––
(138) 138 (83) 83
Credit risk
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group. 
In order to minimise this risk the Group endeavours only to deal
with companies which are demonstrably creditworthy and this,
together with the aggregate financial exposure, is continuously
monitored. The maximum exposure to credit risk is the value of
the outstanding amount.
Credit risk on cash and cash equivalents is considered to be
small as the counterparties are all substantial banks with high
credit ratings. The maximum exposure is the amount of the 
deposit.
Liquidity risk
The Group does not hold substantial cash balances but does
have the ability to make further drawings against its facilities
with its bank as agreed on 3 July 2009. Management also 
continues to have the option to raise funds from the issue of 
equity shares. 
As at 30 June 2009 the Group’s undiscounted cashflows are
summarised as follows:
Current liabilities
2009 2008
£’000 £’000 £’000 £’000
Within 6 to 12 Within  6 6 to 12
6 months months months months
Borrowing Facility 11,230 1,149 – 2,422
Trade payables 3,725 17 2,506 9
Other short term liabilities 5,208 – 2,245 –
Derivatives 836 336 555 368
20,999 1,502 5,306 2,799
Non-current liabilities
£’000 £’000 £’000 £’000
1 to 5 Later 1 to 5 Later
years than years than
5 years 5 years
Borrowing Facility 18,472 3,912 23,413 –
Other long term liabilities – 3,098 – 2,573
Derivatives 1,126 – 382 –
19,598 7 ,010 23,795 2,573
There is no material difference between the fair values and the
book values of these financial instruments. 47 www.allergytherapeutics.com
24.  OPERATING LEASE COMMITMENTS
The following payments are due to be made on operating lease
commitments:
Land & buildings Other Total
2009 2008 2009 2008 2009 2008
£’000 £’000 £’000 £’000 £’000 £’000
Within one 
year 413 384 413 276 826 660
Two to five 
years 763 836 397 436 1,160 1,272
Over five 
years 340 431 – – 340 431
1,516 1,651 810 712 2,326 2,363
Of the operating lease commitments for land and buildings of
£1,516k, £866k relates to the UK based premises. The production
facility accounts for £614k of this commitment and expires in
February 2016. Premises in Spain account for £320k expiring in
2020 and in Germany for £316k expiring in December 2010.
Of the other commitments, £703k relates to leased vehicles, 
all expiring within 3 years.
25.  RETIREMENT BENEFIT OBLIGATIONS
Defined contribution scheme
The Group operates a defined contribution pension scheme for
certain employees in the UK. The assets of the scheme are held
separately from those of the Group in an independently 
administered fund. The amount charged against the profits 
represents the contributions payable under the scheme in 
respect of the accounting period totalling £174k (2008: £208k). 
Defined benefit scheme
The Group operates a defined benefit pension scheme for 
certain employees in Germany. The actuarial valuation was 
carried out by Swiss Life Pensions Management GmbH at 
30 June 2009. The major assumptions used were as follows: 
2009 2008
% pa %pa
Retail price inflation 2.0 3.3
Salary increases 4.0 4.0
Pension increases in payment 2.0 2.0
Discount rate at the beginning of the year 6.0 5.0
Discount rate at the end of the year 6.0 6.0
Expected return on assets 4.1 4.1
Increase of social security contribution ceiling 2.0 3.25
Average life expectancies
Male, 65 years of age at the balance sheet date 18.2 18.0
Female, 65 years of age at the balance sheet date 22.3 22.2
Male, 45 years of age at the balance sheet date 40.9 40.8
Female, 45 years of age at the balance sheet date 44.9 44.8
The assets in the scheme and the expected rates of return were
as follows:
2009 2008
£’000 £’000
Fair value of plan assets 1,104 932
Present value of scheme liabilities (3,925) (3,256)
Deficit in the scheme (2,821) (2,324)
Experience gains / (losses) on plan assets (10) 23
Experience gains / (losses) on plan liabilities 1 201
The plan assets consist of long-term insurance policies that 
cannot be directly deducted from the German pension obligation.
These are recognised as a separate asset, rather than as a 
deduction in determining the defined benefit liability. The basis
used to determine the overall expected rate of return is the 
expected market return as determined by Swiss Life Pensions
Management GmbH using the projected unit credit method. 
The actual return on plan assets for the year is £32k (2008: £54k).
The pension charge generates an unrecognised deferred tax
asset of £279k (2008: £270k), however this is unrecognised in the
Group accounts as there is uncertainty over the recoverability.
2009 2008
£’000 £’000
Amounts charged to operating loss
Current service costs 233 222
Amounts included in other finance costs
Expected return on pension scheme assets (42) (31)
Interest on pension scheme liabilities 209 159
Net charge 167 128
Amounts recognised in the statement
of recognised income and expense
Actual return less expected return on 
pension scheme assets (10) 23
Experience gains and losses arising on 
scheme liabilities 1 201
Changes in assumptions underlying the 
present value of scheme liabilities – 352
Total amount relating to year (9) 57
Opening cumulative (losses) (525) (1,101)
Actuarial loss recognised (534) (525)
Net movement recognised (534) (525) 48
Movement in assets in the year
2009 2008
£’000 £’000
Balance as at 1 July 932 718
Foreign currency differences 70 95
Expected return 42 31
Actuarial (loss)/gain (10) 23
Contributions 70 64
Balance at 30 June 1,104 932
Movement in liabilities in the year
2009 2008
£’000 £’000
Balance as at 1 July (3,256) (2,901)
Foreign currency differences (242) (539)
Service cost (233) (222)
Interest cost (209) (159)
Actuarial gains 1 201
Benefits paid 14 12
Changes in assumptions – 352
Balance at 30 June (3,925) (3,256)
The expected contributions over the forthcoming year are
£226,097.
History of experience gains and losses
2009 2009 2008 2008 2007 2007
% £’000 % £’000 % £’000
Scheme assets
Difference
between
the expected 
and actual 
return (0.9) (10) 2.6 23 1.5 (11)
Scheme liabilities
Experience
gains and 
(losses) –1 6.7 201 1.0 (30)
Changes in 
assumptions
underlying
present value – 352 174
T otal amount 
recognised (0.2) (9) 17.7 576 4.6 133
The Group has taken advantage of the exemption from the 
requirement to disclose the history of experience prior to the
date of transition contained within IFRS 1.
26.  ISSUED SHARE CAPITAL
2009 2009 2008 2008
Shares £’000 Shares £’000
Authorised share capital
Ordinary shares 
of 0.10p each
1 July and 30 June 790,151,667  790 790,151,667 790
Deferred shares 
of 0.10p each
1 July and 30 June 9,848,333 10 9,848,333 10
Issued and 
fully paid
Ordinary shares 
of 0.10p at 1 July 81,950,632 82 81,950,632 82
Issued during 
the year 415,982 0 ––
At 30 June 82,366,614 82 81,950,632 82
Issued and fully paid
Deferred shares 
of 0.10p at 1 July 9,848,333 10 9,848,333 10
Issued during the year –– ––
At 30 June 9,848,333 10 9,848,333 10
Issued share capital 92,214,947 92 91,798,965 92
The deferred shares have no voting rights, dividend rights or
value attached to them.
On 1 July 2009 181,631,937 ordinary shares of 0.1p each issued
pursuant to the Offer, Placing and Subscription at a price of 12p
per ordinary share were admitted to trading on AIM having been
approved by shareholders of the Company in General Meeting
on 30 June 2009. On 10 July, 12,500,000 ordinary shares of 0.1p
each issued pursuant to the exercise of a Warrant by Azure 
Ventures Limited were admitted to trading on AIM. The total 
issued share capital of the Company on 10 July was 276,498,551
ordinary shares. 49 www.allergytherapeutics.com
27 .  SHARE BASED PAYMENTS
The Group has a Savings Related Share Option Plan for the 
benefit of all employees and Executive directors with 12 months
continuous service. There were no options granted in 2008/09.
(The 2006 and 2007 schemes carried a 15% discount while the
2008 scheme carried a 10% discount to the average market share
price on the date of grant). The vesting period is three years. 
The options are settled in equity once exercised. If the options
remain unexercised after a period of six months from the end of
the vesting period, the options expire. Options are forfeited if the
employee leaves the Group before the options vest.
The Group has a Long Term Incentive Plan under which Executive
directors and senior employees may receive annual provisional
awards of performance vesting shares. The number of shares
that vest depends on the Group’s performance during the Plan
cycle in terms of total shareholder return (TSR) compared to the
TSR performance of the companies in the Plan’s peer group. 
If the Group’s position in the peer group at the end of the Plan
cycle is at or above the 75th percentile, 100% of the shares 
provisionally awarded may vest; between the 75th and 50th 
percentile the percentage of shares that may vest will be 
calculated on a straight-line basis between 100% and 33.33%;
below the 50th percentile no shares will vest. Each Plan cycle
will comprise not less than three consecutive financial years.
Awards are forfeited if the employee leaves the Group before 
the shares vest.
Share options were granted to employees and Directors under
earlier schemes. The vesting periods are usually from one to
three years. The vesting of some options is dependent on the
Group’s TSR performance as for the Long Term Incentive Plan
detailed above. The options are settled in equity once exercised.
If the options remain unexercised after a period of 10 years from
the date of the grant, the options expire. Options are forfeited if
the employee leaves the Group before the options vest. 
There were no share based payments issued during the year:
For the following disclosure, Long Term Incentive Plan awards,
with a nil exercise price have been disclosed separately to avoid
distorting the weighted average exercise price (WAEP):
2009 WAEP 2008 WAEP
Number Price (£) Number Price (£)
Outstanding at the beginning of the year 11,453,300 0.31 13,064,761 0.38
Granted during the year –– 632,576 0.31
Exercised during the year (1,794,275) 0.05 (710,206) 0.05
Forfeited during the year (161,405) 0.66 (1,533,831) 0.98
Outstanding at the year end 9,497 ,620 0.36 11,453,300 0.31
Exercisable at the year end 8,769,055 0.35 10,362,224 0.30
Included in the above numbers outstanding at 30 June 2009 
are 6,901,478 (2008: 8,983,191) share options granted before 
7 November 2002 or vested before 1 July 2006 which have been
excluded from the share-based payments charge in accordance
with the IFRS 1 ‘First-time Adoption of International Financial 
Reporting Standards’ transitional provisions.
Options exercised during the year had a weighted average share
price at date of exercise of 14p (2008: 28p).
The share options outstanding at the end of the year have a
weighted average remaining contractual life of 3.4 years (2008:
5.4 years) and have the following range of exercise prices:
30 June 2009 30 June 2008
Exercise price (p) Number Number
0.1-5 4,441,486 6,260,261
6-45 3,135,480 3,194,244
46-120 1,920,654 1,998,795
9,497,620 11,453,300 50
The fair value of options granted under the Savings Related Share 
Option Plan has been arrived at using the Black-Scholes model. 
The assumptions made to value options granted were as follows:
Date of grant Vesting Date of Expected life Exercise Risk-free Share price Volatility of Fair Number
period (yrs) vesting (yrs) price (£) rate at grant (£) share price value (£) outstanding
10/04/08 3 01/05/11 3.2 0.3060 5% 0.34 41.6% 0.17 628,812
26/03/07 3 01/05/10 3.2 0.9945 5% 1.17 30% 0.41 99,753
11/01/06 3 01/03/09 3.2 0.6400 5% 0.75 30% 0.26 339,602
● Expected volatility was based on historic volatility at the 
date of grant
● The share-based payment charge assumes an expected 
option life of 3.2 years, an employee attrition rate of 5% per 
annum and an early surrender risk of 5% per annum.
● The expected number of shares vesting was ‘trued-up’ for 
actual leavers at the balance sheet date.
Details of the shares provisionally awarded under the Long Term Incentive Plan are as follows:
Date of grant Vesting Date of Expected life Exercise Risk-free Share price Volatility of Fair Number
period (yrs) vesting (yrs) price (£) rate at grant (£) share price value (£) outstanding
21/12/07 3 04/07/10 3 0.0000 n/a 0.385 n/a 0.385 1,680,575
09/10/06 3 01/07/09 3 0.0000 n/a 1.000 n/a 1.000 788,733
14/12/05 3 14/12/08 3 0.0000 n/a 0.695 n/a 0.695 –
● Awards granted under the LTIP are valued at the market price 
at the date of grant.
● The share-based payment charge assumes an employee 
attrition rate of 5% per annum and a vesting probability 
of 41.5%.
The Group recognised total expenses of £260,000 (2008: £356,000)
related to equity-settled share based payment transactions during
the year.  51 www.allergytherapeutics.com
28.  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Merger reserve Reserve Reserve Foreign
Issued Share – shares issued – shares – share based Revaluation exchange Retained
capital premium by subsidiary held in EBT payments reserve reserve earnings Total equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 30 June 2007 92 33,173 40,128 (36) 675 226 (133) (65,529) 8,596
Exchange differences 
on translation of 
foreign operations (495) (495)
Actuarial gains
576 576
Valuation losses taken 
to equity (61) (61)
Net income recognised 
directly in equity (61) (495) 576 20
Loss for the period 
after tax (20,297) (20,297)
Total recognised 
income and expense (61) (495) (19,721) (20,277)
Share based payments 356 356
Sale of shares by 
Employee Benefit Trust 35 35
At 30 June 2008 92 33,173 40,128 (1) 1,031 165 (628) (85,250) (11,290)
Exchange differences 
on translation of 
foreign operations (485) (485)
Actuarial gains (9) (9)
Valuation losses 
taken to equity 24 24
Net income recognised 
directly in equity 24 (485) (9) (470)
Loss for the period 
after tax (11,764) (11,764)
Total recognised 
income and expense 24 (485) (11,773) (12,234)
Share based payments 260 260
Sale of shares by 
Employee Benefit Trust 68 68
Shares issued 0 20 20
At 30 June 2009 92 33,193 40,128 67 1,291 189 (1,113) (97 ,023) (23,176) 52
29.  CONTINGENT LIABILITIES
Allergy Therapeutics (UK) Ltd, a subsidiary of Allergy Therapeutics
plc, has guaranteed the deposits required for leases on Group
cars and rented office space occupied by a fellow subsidiary,
Bencard Allergie GmbH. The amount as at 30 June 2009 was
€107,568; £91,469 (2008: €78,000; £52,000).
A cross-guarantee exists between Allergy Therapeutics (Holdings)
Ltd, Allergy Therapeutics (UK) Ltd, Bencard Allergie GmbH, 
Allergy Therapeutics Italia s.r.l. and Allergy Therapeutics Iberica
S.L. in which the liabilities of each entity under the RBS loan
agreement are guaranteed by all the others.
30.  CAPITAL COMMITMENTS
The Group’s capital commitments at the end of the financial 
period, for which no provision has been made, are as follows: 
30 June 30 June
2009 2008
£’000 £’000
Capital commitments 482 1,123
Included in the above is £389,000 for ongoing factory 
refurbishments in the UK (2008: £126,000); £72,000 for new 
plant and machinery (2008: £623,000) and £21,000 for IT 
equipment and systems upgrades (2008: £374,000). 53 www.allergytherapeutics.com
31.  RELATED PARTY TRANSACTIONS
Allergy Therapeutics plc’s related parties include its subsidiary
companies and its key management. Key management personnel
are the Company’s directors, and as such full disclosure of their
remuneration can be found in the Directors’ Remuneration report
on pages 24 to 26.
Stephen Smith and Virinder Nohria, Non Executive Directors of
the Company also received fees during the year in addition to
their fees earned as Non Executive Directors of £85k and US$99k
respectively for professional advice given to the Company.
At 30 June 2009, the Company’s subsidiary undertakings were:
32.  EVENTS AFTER THE BALANCE SHEET DATE
On 1 July 2009 181,631,937 ordinary shares of 0.1p each issued
pursuant to the Offer Placing and Subscription were admitted 
to trading on AIM having been approved by shareholders of 
the Company in General Meeting on 30 June 2009; raising 
approximately £20.6m net of expenses. On the same day 
Alejandro Weinstein and Manuel Llobet were appointed as 
directors of the Company.
On the 3 July the Company repaid £9.4m of debt and revised
and amended the terms of its loan agreement with The Royal
Bank of Scotland.
On 10 July, 12,500,000 ordinary shares of 0.1p each issued 
pursuant to the exercise of a Warrant by Azure Ventures Limited
were admitted to trading on AIM raising approximately £1.5m
net of expenses.
Subsidiary Country of Principal Percentage Class of 
undertaking incorporation 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 
pharmaceutical products 100 Ordinary
Allergy Therapeutics Development Ltd UK Dormant 100 Ordinary
Bencard Allergie GmbH Germany Sale of pharmaceutical products 100 Ordinary
Bencard Allergie (Austria) GmbH Austria Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Italia s.r.l. Italy Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Iberica S.L. Spain Sale of pharmaceutical products 100 Ordinary 54
We have audited the parent Company financial statements of 
Allergy Therapeutics plc for the period ended 30 June 2009
which comprise the parent Company balance sheet and the 
related notes. The financial reporting framework that has been
applied in their preparation is applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted 
Accounting Practice).
This report is made solely to the Company’s members, as a
body, in accordance with Sections 495 and 496 of the Companies
Act 2006. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the Company and
the Company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement
set out on pages 22 and 23, the directors are responsible for 
the preparation of the parent Company financial statements 
and for being satisfied that they give a true and fair view. 
Our responsibility is to audit the parent Company financial 
statements in accordance with applicable law and International
Standards on Auditing (UK and Ireland). Those standards require
us to comply with the Auditing Practices Board’s (APB’s) Ethical
Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is
provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP .
Opinion on financial statements
In our opinion the parent Company financial statements:
● give a true and fair view of the state of the Company’s 
affairs as at 30 June 2009
● have been properly prepared in accordance with United 
Kingdom Generally Accepted Accounting Practice
● have been prepared in accordance with the requirements 
of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for
the financial year for which the financial statements are prepared
is consistent with the parent Company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report to you if, 
in our opinion:
● adequate accounting records have not been kept by the 
parent Company, or returns adequate for our audit have 
not been received from branches not visited by us; or
● the parent Company financial statements are not in 
agreement with the accounting records and returns; or
● certain disclosures of directors’ remuneration specified by 
law are not made; or
● we have not received all the information and explanations 
we require for our audit.
Other matter
We have reported separately on the group financial statements
of Allergy Therapeutics plc for the period ended 30 June 2009. 
Stephen P .S. Weatherseed 
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Gatwick
18 September 2009
Report of the Independent Auditor 
to the Members of Allergy Therapeutics Plc 55 www.allergytherapeutics.com
30 June 30 June
2009 2008
Note £’000 £’000
Fixed Assets 
Investments 3 51 51
Current assets
Debtors: amounts falling due within one year 4 795 121
Current liabilities
Creditors: amounts falling due within one year 5 (463) (117)
Net current assets 332 4
T otal assets less current liabilities 383 55
Net assets 383 55
Capital and reserves
Called up share capital 6 92 92
Share premium 7 33,193 33,173
Other reserves – shares held by EBT 7 67 (1)
Other reserves – share based payments 7 1,291 1,031
Profit and loss account 7 (34,260) (34,240)
T otal equity 383 55
These financial statements were approved by the Board of Directors on 18 September 2009 and were signed on its behalf by:
Company Balance Sheet
Manuel Llobet Ian Postlethwaite
Chief Executive Officer Finance Director   56
1.  ACCOUNTING POLICIES
Basis of preparation
The separate financial statements of the Company are presented
as required by the Companies Act 2006. As permitted by that Act,
the separate financial statements have been prepared in 
accordance with applicable United Kingdom accounting standards
and under the historical cost convention. 
Going concern
The Group incurred losses for the financial years ended 30 June
2008 and 2009 primarily as a consequence of its investment in
research and development activities; these losses have been
funded by equity issues, debt facilities and cash generated by
the operating business. 
The Group has prepared detailed budgets, including cash flow
projections, for the periods ending 30 June 2010 to 30 June
2012. These projections include assumptions on the trading 
performance of the operating business and the continued 
availability of the existing debt facilities. After making appropriate
enquiries, which included a review of the annual budget, 
by considering the cash flow requirements for the foreseeable
future and the effects of sales and other sensitivities on the 
Company’s funding plans, the Directors continue to believe 
that the Group and Company will have adequate resources to
continue in operational existence for the foreseeable future and
accordingly have applied the going concern principle in drawing
up the financial statements. In reaching this view, the Directors
have considered and prioritised the actions that could be taken
to offset the impact of any shortfall in operating performance.
Investments
Investments in shares in subsidiary undertakings are included 
at cost less amounts written off.
Foreign currencies
Transactions in foreign currencies are recorded using the rate of
exchange ruling at the preceding month-end.  Monetary assets
and liabilities denominated in foreign currencies are translated
using the rate of exchange ruling at the balance sheet date and
the gains or losses on translation are included in the profit and
loss account.
Deferred taxation
Deferred tax is recognised without discounting in respect of all
timing differences, between the treatment of certain items for
taxation and accounting purposes, which have arisen but not 
reversed by the balance sheet date except as otherwise required
by FRS 19. 
Employee Benefit T rust (EBT)
The financial statements include the assets and liabilities of a
trust, set up for the benefit of the Company’s employees. 
The Employee Benefit Trust has acquired shares in the Company
and these are deducted from shareholders’ funds on the balance
sheet within ‘Other reserves’ initially at the cost that the shares
were acquired. (At the end of June 2009, all the shares in the 
EBT had been issued). The net proceeds received from the issue 
of these shares through the exercise of options are recognised
through this reserve.
Share based payments
The Company has adopted FRS 20 with effect from 1 July 2006.
FRS 20 requires the recognition of a charge to the profit and loss
account for all applicable share based payments, including share
options, SAYE schemes and share based Long Term Incentive
Plan.
The Company has equity-settled share based payments but no
cash-settled share based payments. All share based payment
awards granted after 7 November 2002 which had not vested
prior to 1 July 2006 are recognised in the financial statements.
All goods and services received in exchange for the grant of 
any share-based payment are measured at their fair values.
Where employees are rewarded using share-based payments,
the fair values of employees’ services are determined indirectly
by reference to the fair value of the instrument granted to the 
employee. This fair value is appraised at the grant date and 
excludes the impact of non-market vesting conditions (for example,
profitability and sales growth targets). 
If vesting periods or non-market based vesting conditions apply,
the expense is allocated over the vesting period, based on the
best available estimate of share options expected to vest. 
Estimates are revised subsequently if there is any indication 
that the number of share options expected to vest differs from
previous estimates. Any cumulative adjustment prior to vesting
is recognised in the current period. 
If market based vesting conditions apply, the expense is allocated
over the relevant period, usually the period over which performance
is measured. Vesting assumptions and resulting expenses are
fixed at the date of grant, regardless of whether market conditions
are actually met. Any adjustment for options which lapse prior to
vesting is recognised in the current period.
Notes to the Company Balance Sheet 57 www.allergytherapeutics.com
At 30 June 2009 the Company’s subsidiary undertakings were:
Subsidiary Country of Principal Percentage Class of 
undertaking incorporation 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 
pharmaceutical products 100 Ordinary
Allergy Therapeutics Development Ltd UK Dormant 100 Ordinary
Bencard Allergie GmbH Germany Sale of pharmaceutical products 100 Ordinary
Bencard Allergie (Austria) GmbH Austria Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Italia s.r.l. Italy Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics Iberica S.L. Spain Sale of pharmaceutical products 100 Ordinary
Allergy Therapeutics (Holdings) Ltd is fully owned by Allergy Therapeutics plc. All other subsidiary undertakings except 
Bencard Allergie (Austria) GmbH, are fully owned by Allergy Therapeutics (Holdings) Ltd. Bencard Allergie (Austria) GmbH 
is fully owned by Bencard Allergie GmbH.
2.  Loss for the financial period
The Company has taken advantage of s.408 (3) of the Companies
Act 2006 and has not included its own profit and loss account in
these financial statements. The Company’s loss for the period
was £20,123 (2008; £514,000).
3.  Investments
Shares in subsidiary
undertaking
£’000
Cost
Investment brought forward and carried forward 51
Provision
Provision brought forward and carried forward –
Net book value
At 30 June 2009 and 30 June 2008 51 58
4.  Debtors
30 June 30 June
2009 2008
£’000 £’000
Amounts falling due within one year
Amounts owed by subsidiary undertakings 305 117
Other debtors 66 4
Prepayments 424 –
795 121
5.  Creditors – amounts falling due within one year
30 June 30 June
2009 2008
£’000 £’000
Taxation and social security 39 117
Accruals and deferred income 424 –
463 117
6.  Called up share capital
Full details of the Company’s share capital are set out in Note 26
of the consolidated financial statements.
7 .  Reserves
Profit and loss account
£’000
At 30 June 2008 (34,240)
Retained loss for the year (20)
At 30 June 2009 (34,260)
Share premium account
£’000
At 30 June 2008 33,173
Shares issued in the year 20
At 30 June 2009 33,193
Other reserve – share based payments
£’000
At 30 June 2008 1,031
Provision in year for share based payments 260
At 30 June 2009 1,291
Other reserve – EBT
£’000
At 30 June 2008 (1)
Sale of shares by EBT 68
At 30 June 2009 67 59 www.allergytherapeutics.com
8.  Share based payments
Full details of the Company’s share based payments are set out
in Note 27 of the consolidated financial statements.
9.  Director’s emoluments
Full details of the Company’s directors’ emoluments are set out
in the Directors’ Remuneration Report in the Report of the 
Directors.
10.  Reconciliation of movement in shareholders’ funds
Y ear to Year to
30 June 30 June
2009 2008
£’000 £’000
(Loss)/profit for the financial year (20) (514)
Issue of shares from EBT 68 35
Share based payments 260 356
Shares issued 20 –
Net (deduction from)/addition to 
shareholders’ funds 328 (123)
Opening shareholders’ funds 55 178
Closing shareholders’ funds 383 55
11.  Contingent Liabilities
Full details of the Company’s contingent liabilities are set out in
Note 29 of the consolidated financial statements. Registered office
Dominion Way
Worthing
West Sussex
BN14 8SA
Advisers
Nominated Adviser and Broker
Nomura Code Securities
1 Carey Lane
London
EC2V 8AE
Auditors
Grant Thornton UK LLP
The Explorer Building
Fleming Way
Manor Royal
Crawley West Sussex
RH10 9GT
Lawyers
Berwin Leighton Paisner
Adelaide House
London Bridge
London
EC4R 9HA
Actuary
SLPM Swiss Life Pensions Management GmbH
Swiss Life Gruppe
Berliner Strasse 85
80805 Munchen
Germany
Registrars
Capita IRG plc
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Bankers
The Royal Bank of Scotland
South East Corporate Centre
Turnpike House
123 High Street
Crawley West Sussex
RH10 1DQ
Public Relations Advisers
Financial Dynamics
Holborn Gate
26 Southampton Buildings
London
WC2A 1PB
Patent Attorneys
D Young & Co
120 Holborn
London
EC1N 2DY
Trademark Attorneys
Hoffman Eitle
Sardinia House
Sardinia Street
52 Lincoln’s Inn Fields
London
WC2A 3LZ
Arabellastrasse 4
D-81925 München
Germany
www.allergytherapeutics.com 60
REGISTERED NUMBER: 5141592 (England and Wales)
Shareholder Information  Designed and produced by Warren Creative
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“Allergy vaccination continues its progress
from a niche treatment into the mainstream
of the pharmaceuticals industry” Allergy Therapeutics plc
Dominion Way
Worthing
West Sussex
BN14 8SA
Tel: 
+
44 (0)1903 844720
Fax:
+
44 (0)1903 844726
www.allergytherapeutics.com