Shield Therapeutics (AIM:STX) reported revenue of $30.4 million for the six months ended 30 June, up 42% from $21.4 million a year earlier.
The London-listed pharmaceutical company, which specialises in iron deficiency treatments, posted an operating profit of $0.2 million, reversing a $5.8 million operating loss in the same period last year.
The group's overall loss narrowed sharply to $2.3 million from $9.5 million in H1 2025, helped by higher revenue and continued cost discipline; financial expenses of $2.3 million, mainly interest on its long-term loan, remained the main driver of the residual loss.
ACCRUFeR® prescriptions rose 21% to approximately 102,000, generating $20.1 million in US sales, up 5% year on year, despite a roughly 95% drop in approved prescriptions in New York's Medicaid programme from May after changes to prior authorisation requirements.
"The adaptability of our sales force is especially encouraging given how quickly we pivoted to commercially insured patients, our largest segment, at two-thirds of total revenue which grew 27%", said chief executive Anders Lundstrom.
Ex-US revenue rose to $10.3 million from $2.2 million, driven by a $7.9 million development milestone from China's ASK Pharma and higher Norgine royalties in Europe.
Cash and cash equivalents fell to $8.3 million from $11.6 million at the end of December, after a $4.7 million loan repayment to Runway Growth Capital.
The company secured its first Group Purchasing Organisation contract in the period, opening access to more than 400 additional clinics, and confirmed pediatric indication extensions now approved in the US, Europe and UK.
News Intelligence what this means for the company
Shield Therapeutics swung to operating profit in H1 2026 on 42% revenue growth to $30.4 million, driven by a commercial pivot toward insured patients after New York Medicaid disruption. The company remains on track for full-year operating profitability despite a 95% drop in approved Medicaid prescriptions in New York from May, signaling that its core business—two-thirds from commercially insured patients—is resilient to that headwind. The strategic pivot away from New York's Medicaid programme has proven executable: ACCRUFeR® prescriptions rose 21% and US sales grew 5% despite the Medicaid shock.
- Cash position fell to $8.3 million from $11.6 million at year-end 2025 after a $4.7 million loan repayment, leaving limited runway relative to the $2.3 million in annual financial expenses (mainly interest); profitability timing and debt refinancing become critical near-term milestones.
- Ex-US revenue jumped to $10.3 million from $2.2 million, anchored on a one-time $7.9 million development milestone from ASK Pharma in China; sustainability of that revenue stream and the milestone's recurrence risk warrant monitoring.
Operating profitability achieved ahead of guidance and commercial resilience proven against a material Medicaid disruption strengthen the bull case, but the cash burn rate and reliance on milestone payments create execution risk. Pediatric indication approvals in the US, Europe and UK now open a new patient population, though the commercial ramp remains unproven.
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