Allergy Therapeutics, the West Sussex-based specialty pharmaceutical company, is proposing to raise up to £12m through a placing of up to 41 million new shares.

The AIM-listed group said the proceeds will enable the board to "capitalise on the incremental organic and inorganic growth opportunities for the company and its subsidiaries".

The proceeds will be used to invest in new product development with a view to achieving a step change in the size of its total addressable markets, strengthen its balance sheet and accelerate growth.

Allergy Therapeutics increased its sales by 11 per cent in the financial year ended 30 June 2015 and said sales have continued to increase since the year-end, growing by 15 per cent in the first four months of the new financial year.

Chief executive Manuel Llobet said: "We have seen an increase of our revenue growth rate during the first four months of the year despite flat markets.

"We believe that this continuing increased demand for our products highlights the strong profile of our portfolio and, in particular, our short course aluminium free allergy vaccines driving double digit revenue growth in our European markets.

"In light of this continuing momentum in our business, we are seeking to raise up to £12m to accelerate execution of our growth strategy. The placing proceeds will help us develop a presence in related areas such as food and perennial allergies such as house dust mite which, ultimately, will enable us to achieve a step-change in the size of the group's total addressable market."

Panmure Gordon is acting as financial adviser, nominated adviser and corporate broker in respect of the placing.