Allergy TherapeuticsLSE:AGY +1.43% Gross Margin % is 59.20% as of Dec. 2025, which is 18% below its 10-year median of 72.40. The stock has 7 warning signs investors should review. Among 936 Drug Manufacturers companies, Allergy Therapeutics ranks better than 55.66% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Allergy Therapeutics had a gross margin of 59.20% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Allergy Therapeutics Gross Margin % Related Terms
Allergy Therapeutics Gross Margin % Historical Data
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The historical data trend for Allergy Therapeutics's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:AGY vs ZTS, UTHR, VTRS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Allergy Therapeutics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Allergy Therapeutics Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Allergy Therapeutics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Allergy Therapeutics's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Allergy Therapeutics (LSE:AGY) has a Gross Margin % of 59.20% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Allergy Therapeutics and its competitors. This is 18% below median its historical median of 72.40. Over the past decade, Allergy Therapeutics' Gross Margin % has ranged from 52.22 to 75.11. According to the industry distribution chart, Allergy Therapeutics ranks #415 out of 936 companies in the Drug Manufacturers industry, placing it in the top 44.3%.
Is Allergy Therapeutics' Gross Margin % too high?
Allergy Therapeutics' current Gross Margin % of 59.20% is 18% below median its 10-year median of 72.40. Over the past 10 years, this metric has ranged from a low of 52.22 to a high of 75.11. The Drug Manufacturers industry median Gross Margin % is 48.50. Allergy Therapeutics' value of 59.20% is 22.1% above this industry median. Based on the distribution chart, Allergy Therapeutics ranks #415 out of 936 companies in the Drug Manufacturers industry, which is above the industry midpoint.
How does Allergy Therapeutics' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Allergy Therapeutics ranks #415 out of 936 companies for Gross Margin %. This puts Allergy Therapeutics in the upper half of its industry. The industry median Gross Margin % is 48.50. Allergy Therapeutics' value of 59.20% is 22.1% above this benchmark. Historically, Allergy Therapeutics' own Gross Margin % has ranged from 52.22 to 75.11 over the past decade. While the company's 10-year median is 72.40 vs. the industry median of 48.50, Allergy Therapeutics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.50, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allergy Therapeutics's current Gross Margin % of 59.20% is 22.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Allergy Therapeutics and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allergy Therapeutics's current Gross Margin % is 59.20%, which is 18% below median its own 10-year median of 72.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allergy Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, Allergy Therapeutics (LSE:AGY) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.03, compared to a current price of £0.07 — trading 136.7% above its estimated fair value. The current Gross Margin % is 59.20%, which is 18% below median its 10-year median of 72.40 and 22.1% above the Drug Manufacturers industry median of 48.50. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Allergy Therapeutics (LSE:AGY), the current Gross Margin % is 59.20% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Allergy Therapeutics plc is an international biotechnology group focused on the diagnosis and treatment of allergic disorders through immunotherapies that target the underlying cause of disease. Its portfolio includes Pollinex, Pollinex Quattro, Acarovac, Tyrosine S/TU, Venomil, Oralvac and other allergy immunotherapy products, supported by R&D programmes such as Grass MATA MPL and VLP Peanut. The Group operates in a single class of business, being the manufacture and sale of allergy-related medicines, and maintains centralised manufacturing and research and development capabilities in the UK. Its geographical presence covers Central Europe (Germany, Austria, Switzerland and the Netherlands), Southern Europe (Spain and Italy) and the Rest of the World (including the UK).
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