Shield Therapeutics drops as CFO exits and Medicaid concerns weigh

Shares in Shield Therapeutics PLC (AIM:STX, OTCQB:SHIEF) fell 12% to 7.71p after the group reported first-quarter revenue growth and positive earnings but flagged potential headwinds in the US market and announced the departure of its finance chief.

The pharmaceutical company, which focuses on iron deficiency treatments, said group net revenues rose to $18 million in the quarter, up from $7 million a year earlier, with EBIT of about $2.5 million compared to a $4.4 million loss previously.

Sales of its lead product ACCRUFeR increased 54% to $9.9 million, supported by higher prescription volumes.

However, the company said new prior authorisation requirements under New York’s Medicaid programme could affect sales. The state accounts for around 19% of ACCRUFeR revenues, though the full impact is not yet clear.

Chief executive Anders Lundstrom said the group is shifting its focus towards commercially insured patients to offset the change.

Separately, chief financial officer Santosh Shanbhag will step down on 1 June, with Lundstrom taking on the role on an interim basis while a successor is sought.

Cash stood at $12.4 million at the end of March, slightly up from the end of 2025.