Allergy Therapeutics PLC shares rallied on Wednesday after it announced a funding update with an alternative asset management firm.

Allergy Therapeutics shares jumped 26% to 5.35 pence each on Wednesday morning in London.

The Sussex, England-based biotechnology company, which specialises in allergy vaccines, said it entered into a £40 million secured loan facility with Hayfin Healthcare Opportunities LuxCo SARL, a fund advised by Hayfin Capital Management LLP. Hayfin Capital is an alternative asset management firm.

The facility consists of a committed £20 million five-year term loan and an additional uncommitted £20 million incremental facility.

Allergy Therapeutics Chief Executive Officer Manuel Llobet said: ‘This long-term funding transaction, together with the continued progress of our key research & development programmes and an enhanced supply chain to enable top line growth, has largely removed our funding overhang and puts Allergy Therapeutics in the best strategic position for the future.’

Last month, the company announced a further advancement through patient cohorts in phase 1/2.

Allergy Therapeutics said the second cohort of peanut allergic patients completed dosing, with patients receiving up to a 50-fold dose increase from the initial dose.

The company expects to release preliminary results from the first two cohorts of peanut allergic patients in the current fourth quarter of 2024.

Notably, no relevant safety or tolerability issues were observed at the higher doses.

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