Shield Therapeutics to enter Canadian market following approval of iron deficiency drug

Pharma firm Shield Therapeutics has seen its flagship iron deficiency drug approved by the Canadian health authority, paving the way for a £250,000 payment to the firm.

The listed company, which has operations on Tyneside, is in the midst of a major push into the North American market with its Accrufer tablets which are designed to beat iron deficiency, including in people with the blood disorder anemia. It told investors that Health Canada has approved the signature tablets as prescription drug for the treatment of adults.

The move means Shield will now tackle the Canadian market via its distribution partner Kye Pharmaceuticals Inc, which submitted the the drug for approval in spring 2022. Shares in Shield rose on the news, which included confirmation the firm would receive a £250,000 payment as part of a package of £850,000 of development and sales milestone sums available under its agreement with Kye.

Read more: MPs call for investigation into FCA's handling of WealthTek scandal

Read more: Robotics firm Tharsus sees turnover drop after Ocado partnership ends

The progress in Canada follows last month's departure of former CEO Greg Maddison, who had spearheaded the firm's ambitious plans to break into the US market. Mr Maddison was replaced on an interim basis by independent non-executive Anders Lunstrom, who has experience at the helm of biotech and pharmaceutical companies.

Mr Lundstrom, interim CEO of Shield, said: "We are delighted with the progress made in partnership with Kye since the signing of the license agreement in January 2022. Both organisations have demonstrated excellent collaboration and are driven to make Accrufer available to patients in Canada with iron deficiency as quickly as possible. Shield Therapeutics is committed to bringing Accrufer/Feraccru to patients with iron deficiency around the world, and Canada is an important component of that mission."