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Data presented at AACR-NCI-EORTC demonstrated biologic proof of principle of the use of pre|CISION to deliver two different payloads and indicated the potential for a synergistic benefit. We expect this to raise interest in the platform. In addition, we update our estimates to include the recent fundraising which extends Avacta’s cash runway into H2 2026. The quantum raised eases the immediate cash situation, and allows the commencement of the FAP-Exd Phase 1 study. However, additional funding will be required to develop the broader platform further.
Avacta Group PLC
Trinity Delta view: Although addressing attractive, and commercially relevant, indications, we view faridoxorubicin’s (FAP-Dox, previously AVA6000) primary role as being proof-of-concept demonstration of FAP-targeted biotherapeutics. The versatility and broad potential of Avacta’s pre|CISION platform, with the ability to selectively activate potent drugs in the TME, should lead to a deep pipeline of novel targeted therapeutics. The successful £16m placing removes funding uncertainty and allows management to progress faridoxorubicin and, more importantly in our view, FAP-EXd (AVA6103) through the next stages of clinical development. Following this raise we suspend our forecasts and valuation, as is our practice, but for context our previous valuation was £457m ($571m), or 111p/share.
Avacta has presented final data from its Phase Ia dose expansion study of faridoxorubicin in salivary gland cancer at ESMO. This shows an extension of progression free survival to at least 41 weeks, more than doubling the 15 weeks seen with standard of care. The data presented also confirms the low cardiotoxicity of the treatment providing proof of concept for the pre|CISION platform. This follows the significant expansion of the Avacta IP portfolio announced last week. We increase our target price to 72p (previously 62p). However, the company needs to address its limited cash resources to enable it to fully monetise the platform.
Trinity Delta view: These preclinical data once again provide valuable insights into the versatility and broad potential of Avacta’s pre|CISION platform. The proof-of-concept of FAP-targeted biotherapeutics will be demonstrated through its lead clinical candidate, faridoxorubicin (FAP-Dox, previously AVA6000), but we believe this should be viewed as the first in a pipeline of novel therapeutics that can be selectively activated in the TME, thus reducing toxicity and improving patient outcomes. We view FAP-EXd (AVA6103) as the true value driver and believe its continued clinical development, and related data, over the next 24 months will provide the more material inflection points. Our Avacta valuation is £457m ($571m), or 111p/share.
A presentation of data showing that pre|CISON technology works with a dual payload marks a significant expansion of Avacta’s IP, enabling the technology to be used for the development of combination cancer therapy in a single medicine. Development of bispecific antibody drug conjugates has become of significant interest to major pharma with multiple recent high value transactions. The new IP follows the development of pre|CISION to encompass the ability to both adjust bioavailability and longevity of the conjugate enabling development of a highly tailored therapeutic. We believe the expansion of the pre|CISION IP significantly enhances Avacta’s value, however, the company needs to address its limited cash resources to enable it to fully monetise the platform
Phase I data from Avacta’s lead pre|CISION asset, faridoxorubicin (formerly FAP-Dox, AVA6000) continues to mature, with presentation of full Phase Ia dose escalation data upcoming at the European Society of Medical Oncology (ESMO) 2025 meeting. Further data from salivary gland cancer (SGC) patients enrolled in the Phase Ia/Ib dose escalation and expansion cohorts are expected by year-end, with similar data in TNBC (triple negative breast cancer) following in H126. These data, along with additional pre|CISION platform and pipeline insights that may be revealed in the October pipeline update, could grow partnership interest. AVA6103 (FAP-EXd), Avacta’s second pre|CISION asset and the first to incorporate proprietary sustained release IP, remains on track to begin Phase I in early-2026, with initial data by end-2026. Our Avacta valuation is £457m ($571m), equivalent to 111p/share.
The interims provided little in way of new updates and was more of a summary of te path taken to be a therapeutic focussed company. In itself that is no bad thing but we remain concerned about the cash requirements to settle the bond and not least fund the Phase 1 of FAP-EXd (exatecan) due to commence in Q1,26. There is a focus on cash management and post period, the agreement with Heights regarding the convertible bond has been amended with the deferral of two placings. There has also been a series of small placings to raise cash to settle the bond. Discussions regarding partnering are on-going but there are no visible signs of progress.
Pivot to pure-play biotech – We make no changes to our target price or recommendation today but annualise the impact on forecasts (affecting FY25E revenues) following the Diagnostics divestment. We will review with the CFO and update again in due course. Reiterate Buy, 99p TP.
Avacta interim results contain little new news, but consolidate a busy first nine months of 2025 as the company has restructured to focus on its high value therapeutic assets. The company has announced some early clinical data and disposed of its diagnostics divisions. In addition, Avacta has renegotiated its convertible bond, removing the dilutive quarterly issue of shares. Development timelines remain on track. We expect new clinical data to be presented at ESMO (mid-October) with data from the Phase Ib extension cohort in salivary gland cancer also anticipated prior to the year end. Additional funding is required for Avacta to continue development, however, following the restructuring, a rejuvenated management team and the publication of strong (albeit early) clinical data the company is well positioned.
Trinity Delta view: In our view, the amended CB terms indicate management confidence in their ability to secure funds to advance Avacta’s pre|CISION assets through clinical development. This funding is likely to come from a variety of sources including partnerships, strategic investment, and/or an equity raise, and could be catalysed by key data readouts slated for the next 12 months: Phase I FAP-Dox SGC results in H225 (potentially at ESMO 2025) and TNBC data in H126. Appetite for Avacta equity has been demonstrated through the two recent oversubscribed equity placings; notably the proceeds being used to cash settle CB repayments has also resulted in less dilution than would have been the case with a direct equity settlement. CB amendments announced in tandem with this latest raise allow deferral of the next two quarterly repayments removing some pressure from near-term cash flow requirements. Subject to extending Avacta’s cash runway beyond Q126, there are multiple opportunities to unlock value through generating and developing a pipeline of highly novel tumour targeting drug conjugates. Our last published Avacta valuation is £449m ($561m).
Avacta has amended its convertible bond with Heights, deferring two payments, and as in July, has raised £3.25m through a placing at 50p to settle the next payment (due October). This reduces dilution as the shares to settle the bond are issued at a 10% discount to VWAP. Although there are some conditions, we do not see these as particularly onerous, and the delay of repayments gives Avacta time to prove the efficacy of its technology. Recently announced data in salivary gland cancer has been particularly promising and we expect the next update in October at ESMO.
Avacta Group PLC Avacta Group PLC
Avacta has raised £3.25 million through a share placing with high net worth investors at 30p per share, facilitated by Zeus Capital.
Avacta has provided a quarterly update ahead of its AGM which takes place later today. There is little new information, but the announcement provides a useful summary of events in the last quarter showing good progress both with clinical data and corporate activity. The recent expansion of the management team gives increased capacity to both clinical and commercial activities, in line with the focused strategy and targeted route to value generation.
Avacta’s appreciation of the scope of its pre|CISION-enabled peptide-drug conjugate platform has been augmented through its Tempus AI collaboration, which has provided insights into indication selection that should enable smarter clinical trial planning. This, coupled to new IP, could also support business development activities. Further data from Avacta’s current pipeline, which has the potential to improve the therapeutic index of many highly potent yet systemically toxic oncology drugs, are anticipated over the next 18 months. Full Phase I AVA6000 (FAP-dox) salivary gland cancer (SGC) data are expected H225, with similar data in TNBC (triple negative breast cancer) to follow in H126; these data could be a prelude to a deal. Subject to funding, Phase II studies in both indications may begin in 2026. A second pre|CISION asset, AVA6103 (FAP-EXd), is on track to start Phase I in early-2026, with first clinical data by end-2026. Our Avacta valuation is £446m ($558m), equivalent to 114p/share.
A further partial response in a patient with salivary gland cancer treated with FAP-Dox builds on the strong data announced at AACR in April. It both gives increasing confidence in the potential for FAP-Dox and builds data which can be used to progress licensing discussions. As an open label trial we expect further data releases throughout the year.
Trinity Delta view: Avacta’s transition to a pure play oncology biopharma company is nearly complete, pending conclusion of the Coris divestment. Lead asset, AVA6000, has successfully demonstrated the pre|CISION platform’s ability for tumour-specific delivery of potent and toxic actives with minimal systemic effects and will render further clinical data in H225. Second asset, AVA6103, should enter the clinic in 2026, and will be the first programme to demonstrate the pre|CISION platform sustained release mechanism. This new IP, and a better appreciation of the scope of the pre|CISION platform gleaned from the Tempus collaboration, provides multiple new opportunities for Avacta to unlock value through generating and developing a pipeline of highly novel tumour targeting drug conjugates, subject to securing funding. Our last published Avacta valuation is £449m ($561m), equivalent to 119p/share (112p fully diluted).
No mean feat – Avacta has quickly moved from its previous business model (Affimer partnering and Diagnostics) to one with a promising platform for oncology. We intend to update our forecasts in due course to reflect this completed transformation. We retain our Buy rating and 99p TP.
Avacta has reported FY results to December 2024, with cash at the end of April of £17.3m following the divestment of Launch Diagnostics; this gives a cash runway to Q1 2026. Prior to this we expect additional clinical data from lead programme FAP-Dox (AVA6000) in salivary gland cancer (late 2025) and potentially triple negative breast cancer (H1 2026). Recent data on FAP-Dox, in salivary gland cancer, which is expected to be an orphan indication, is highly encouraging. FAP-EXd (AVA6103), remains on track to enter the clinic in early 2026. Partnering interest has been received for both programmes and use of the platform. A rejuvenated management brings a focused strategy and targeted route to value generation.
Avacta has announced highly encouraging updated data from its lead programme AVA6000 at the 2025 AACR Annual Meeting showing progression free survival in salivary gland cancer of 25.3 weeks to date - close to double that seen with comparable standard of care - around 15 weeks. This is clinically significant and may extend further as median PFS has yet to be reached. The company is also presenting data on AVA6103, highlighting the long half-life, and its collaboration with Tempus AI.
Avacta continues its transition into a pure-play therapeutics company to advance its pre|CISION-enabled peptide-drug conjugate platform. The expanding pipeline has the potential to improve the therapeutic index of many highly potent yet systemically toxic oncology drugs. Progress has been tangible with early efficacy and safety data from the Phase Ia salivary gland cancer (SGC) dose escalation cohort of lead asset AVA6000 (FAP-Dox), and confirmation of dosing and ongoing enrolment into Phase Ib expansion cohorts. Candidate selection for a second pre|CISION programme has completed, with AVA6103 (FAP-EXd) on track to enter the clinic in early-2026. The disposal of Launch Diagnostics for £12.9m sharpens the therapeutics focus, broadening Avacta’s appeal to global specialist healthcare investors, and extends the cash runway into Q126. Further progress and positive clinical data over the next 24 months should provide multiple value inflection points. Our updated Avacta valuation is increased slightly to £449m/$561m, or 119p/share.
Avacta is transitioning to a pure-play therapeutics company, disposing of its diagnostic assets and focusing on the development pipeline. Its novel therapeutic platform, pre|CISION, enables the delivery of highly toxic compounds directly to a tumour, reducing side effects and damage to healthy tissue. Recent data from the lead programme, FAP-Dox (AVA6000), in salivary gland cancer, which is expected to be an orphan indication, is highly encouraging. FAP-EXd (AVA6103), the second programme, is expected to enter the clinic in early 2026. Partnering interest has been received for both programmes and use of the platform. A rejuvenated management brings a focused strategy and targeted route to value generation. We initiate with BUY and 62p TP.
Promising clinical momentum – AVA6000 continues to produce positive clinical data from the ongoing Phase I trial, the Phase Ib trial has started recruitment, and the company expects full Phase I results to be reported in 2Q25. We reiterate our Buy rating and 99p TP.
Generating these two additional assets, and the pre-clinical data produced so far, show the potential capability of Avacta’s pre|CISION and Affimer platforms for creating cancer therapeutics. We reiterate Buy, TP 99p.
We see a real possibility that Avacta and its assets could set a new standard for chemotherapy. We initiate with a Buy rating and 99p TP.
Avacta’s growing knowledge base and expertise is cementing its leadership position in FAP-enabled biotherapeutics. Lead clinical asset, AVA6000 (FAP-Dox) is the first of a series of pre|CISION-based modalities that have the potential to improve the therapeutic index of many highly potent yet systemically toxic oncology drugs. Other novel programmes AVA6103 (FAP-EXd) and AVA7100 (an Affimer-drug conjugate platform) further broaden the potential utility of the pre|CISION platform. Progress into the clinic and successful clinical results over the next 24 months should provide multiple value-inflection points. We value Avacta at £439m, or 119p/share.
Trinity Delta view: These early preclinical data provide first insights into the broad potential of Avacta’s pre|CISION technology and the emerging highly innovative pipeline. These novel PDC and AffDC therapeutics have the potential to deliver a variety of known potent drugs (payloads) directly to the TME, limiting systemic toxicities and improving the therapeutic window. These data, plus validation from AVA6000 (September 2024 Lighthouse), indicate that pre|CISION chemistry could overcome some drawbacks associated with ADCs (ie non-specific payload release) as well as also potentially being highly applicable in treating tumours with lower or more heterogeneous FAP expression. This includes difficult to treat cancers with high unmet need, which could be addressed by next generation PDCs and AffDCs.
Commentary following release of the Company's half-year report.
Trinity Delta view: Avacta is transitioning into a developer of innovative highly targeted specialist oncology products. Lead asset, AVA6000, has successfully demonstrated the pre|CISION platform’s ability for tumour-specific delivery of potent and toxic actives with minimal systemic effects. Broader data indicating that lower FAP activity is still sufficient for active drug release, extends the applicability of the pre|CISION platform to other FAP-expressing tumour types (FAPmid), using novel warheads. Once the Diagnostics division has been divested, Avacta will become a fully focused biotech company. An important element of this strategy is to broaden Avacta’s appeal to specialist healthcare investors via a potential additional listing on NASDAQ, securing sustainable funding for further pipeline development. Pending the October R&D event in London we maintain our Avacta valuation of £675m, equivalent to 188p/share.
Understanding AVA6000 – After the latest data on AVA6000 was presented as a poster at the oncology conference ESMO, we talk through the results of the AVA6000 Phase I with Dr Chris Coughlin.
Trinity Delta view: Data presented at ESMO 2024 provide further proof of concept, confirming that AVA6000 works as designed at both Q3W and more frequent Q2W dosing, with selective targeted release of the drug warhead (doxorubicin) in the TME, resulting in lower toxicities than standard doxorubicin and preliminary efficacy in cancers that over-express FAP and are doxorubicin sensitive. These data should guide dose and indication selection for the planned expansion cohorts in H224. Excitingly, PK data insights point to the broader potential and applicability of the pre|CISION platform in treating solid tumours with lower FAP expression (or stroma-only expression of FAP). We look forward to additional disclosures about the therapeutics pipeline and how Avacta intends to deploy the pre|CISION platform in creating novel TME targeting therapies. Ahead of H124 interims on September 30, and a pipeline review/science day in Q424, we reiterate our Avacta valuation of £675m, equivalent to 188p/share.
Avacta has announced an update ahead of its AGM today. The key highlight is that dosing in the second cohort of the two weekly clinical test of AVA6000 (Arm 2 of Phase 1) has been successfully completed without dose limiting toxicities being observed and that dosing is now ongoing in cohort 3. That keeps the company on track to commence the dose expansion Phase 1b efficacy study in 2H24 when it also expects to present further data from the AVA6000 trial. In addition, Avacta has announced the formation of a Scientific Advisory Board to support the broader development of AVA6000 and the pre|CISION™ pipeline, a number of Board changes, and that net cash at 31st May was c£35m, sufficient to progress AVA6000 into Phase 2 clinical trials and develop the wider drug pipeline. Avacta plans to hold a Research and Development Spotlight Science Day in 4Q24 when it will provide more detail on the future of the pre|CISION™ platform.
Recent updates on current lead asset AVA6000, a peptide-drug conjugate of doxorubicin, suggest the programme remains on track to move into dose expansion cohorts in H224. Most recently, AACR data confirm that AVA6000 is working as intended, with selective activation at the target tumour site, lower toxicities than standard doxorubicin, and anti-tumour effects in cancers with over-expression of FAP and that are sensitive to doxorubicin monotherapy. In addition, there have been no unexpected safety signals in the first dosing cohort of the optimised two-weekly schedule, important given the more frequent administration. Continued successful clinical progress with AVA6000 also helps to validate the proprietary pre|CISION platform. This could have wide ranging potential in oncology, with the opportunity to develop next-generation targeted cancer treatments. Details on the broader pre|CISION pipeline are expected in H224. Our valuation post FY23 results and the March fundraise is slightly increased to £675m (equivalent to 188p/share).
Avacta has announced the successful completion of patient dosing in the first cohort of the two weekly dosing regimen in Arm 2 of the Phase 1a tolerability clinical study of AVA6000 with no adverse safety signals. Three patients have now been dosed in the second cohort. The company has also announced the initiation of a sub-study with SOFIE Biosciences (SOFIE) to better characterise the entire spread of cancer and related levels of FAP in selected patients with a view to identifying the target cancers most likely to respond to AVA6000 for when the Phase 1 study proceeds to test for efficacy in Phase 1b. Avacta remains on track to commence the dose expansion Phase 1b efficacy study and to present further data from the AVA6000 trial in 2H24.
Avacta reported results for FY23 but more importantly announced the appointment of Christina Coughlin as CEO wef 1 May, replacing Alastair Smith who is stepping down today. FY23 results were better than consensus at the EPS level. Net cash ended the year at £16.6m, as previously disclosed, which has since been bolstered by the £31m gross equity raise enabling Avacta to fund the AVA6000 programme through Phase 2 clinical trials, as well as advancing other candidates in its pre|CISION™ and Affimer® drug development platforms. Avacta reaffirmed its expectation that the AVA6000 dose expansion efficacy study is on track to begin in 2H24 and the company also expects to disclose further details of other pre|CISION™ based drugs incorporating more potent toxins this year.
30th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: Wincanton (WIN.L) has left the Premium list of the Main Market Byotrol (BYOT.L) has left the AIM Market What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for a consideration of approximately £1.3m, payable by the issue of new ordinary shares in Electric Guitar. The Acquisition constitutes a reverse takeover under the Listing Rules and therefore shareholder approval for the Acquisition is being sought at a general meeting of Electric Guitar to be convened for 1 May 2024. Change of Market: 8 April 2024: TheWorks (WRKS.L) a multi-channel value retailers of books, arts and crafts, stationery, toys and games, offering customers a differentiated proposition as a value alternative to full price specialist retailers. The Company is listed on the premium segment of the Main market of the London Stock Exchange. The Company has announced its intention to change to the AIM market on 3 May 2024. Currently the market capitalisation of TheWorks is £16m. Dual Listing: Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hybridan Chefs research@hybridan.com Banquet Buffet*** Avacta Group 47.5p £170m (AVCT.L) The life sciences Company developing innovative, targeted cancer treatments and powerful diagnostics announces that Christina Coughlin, MD, PhD, has been appointed as the new Chief Executive Officer of Avacta, effective 1 May 2024. Dr Coughlin has served as a Board member since March 2022, was a consultant in clinical development and was Head of Research & Development since February 2024, driving the development of the preCISION platform from the bench to the bedside. After 19 years as CEO, Dr. Alastair Smith will be stepping down today. CloudCoCo Group 0.45p £3.2m (CLCO.L) The provider of Managed IT services and communications solutions to private and public sector organisations announces its full year results for the year ended 30 September 2023. Revenue increased 7% to £26.0m (2022: £24.2m), Trading Group EBITDA increased 19% to £1.9m (2022: £1.6m), and cash and cash equivalents decreased to £794k (2022: £1.5m). While the current economic climate will continue to present near-term challenges, the work that has been completed to streamline and focus the Group and positions it well for continued progress in FY24, particularly in the areas of Cyber Security and Multi-cloud. KIBO Energy 0.0375p £1.7m (KIBO.L) The renewable energy-focused development Company, announces the publication by its subsidiary, Mast Energy Developments, developer and operator in the rapidly growing flexible power market, of its audited financial results for the year end 31 December 2023. Revenue decreased to £341k (2022: £1.04m), the loss for the period increased to £3.54m (2022: £2.73m), and cash and cash equivalents decreased to £252 (2022: £132k). Post year-end, the Company secured alternative funding under a funding facility for up to £4m with RiverFort further to an agreement signed with MED subsidiary Pyebridge. Kooth 278p £101.4m (KOO.L) The youth digital mental well-being Company announces the appointment of Sherry Beth Husa to the Board as an independent non-executive Director with immediate effect. Sherry Beth Husa has more than 35 years' experience in building and improving the performance of managed care organisations in the USA. Sherry has extensive experience of leading and improving the operations, growth and profitability of significant US health insurance programmes. Poolbeg Pharma* 11.75p £58.8m (POLB.L) The biopharmaceutical Company focussed on the development and commercialisation of innovative medicines targeting diseases with a high unmet medical need announces its audited results for the year ended 31 December 2023. Cash and cash equivalents was £12.17m (2022: £16.19m) at the period end. During the period, the Company reported positive results from POLB001 LPS human challenge trial which revealed potent target inhibition and major reductions in key inflammatory markers. The period saw the strategic expansion of POLB001 as a preventative therapy for cancer immunotherapy-induced Cytokine Release Syndrome. 2023 was an exceptional year for Poolbeg. The Company also separately announced that it had entered into an exclusive 12-month option agreement with Silk Road Therapeutics Inc, for a nominal fee, to acquire a novel topical muco-adherent formulation of Pentoxifylline for the treatment of oral ulcers in patient's suffering from Behçet's Disease. There is a clear unmet medical need for an effective treatment for this rare disease, which has no cure. Behçet's Disease causes inflammation of blood vessels and tissues, resulting in debilitating symptoms, the most common being oral ulcers which impact essential functions like eating, drinking and speaking. A Phase 2 trial has been successfully completed, demonstrating superiority over standard of care, it has Secured Orphan Drug Designation and Fast Track Designation from the FDA. With the growing focus on the rare and orphan disease space, Poolbeg is poised to capitalise on the significant opportunities presented by this attractive market. Northcoders Group 150p £12m (CODE.L) The technology training Group based in the UK announces its Final Results for the year ended 31 December 2023. Group revenue increased 27% to £7.1m (2022: £5.6m), adjusted EBITDA decreased to £0.1m (2022: £0.9m) and the Company had a cash balance of £1.6m (2022: £2.8m). Both B2C and B2B divisions started FY24 strongly, with record B2C applications and a growing pipeline for B2B contracts. Northcoders is trading in line with market expectations for FY24. Smarttech247 22p £25.0m (S247.L) The multi-award-winning provider of AI-enhanced cybersecurity services providing automated managed detection and response for a portfolio of international clients today announces its unaudited interim results for the six months ending 31 January 2024. Revenues increased 17.4% to EUR 5.4m ( H1 2023: EUR 4.6m), adjusted EBITDA was EUR 125k (H1 23: EUR 1.15m); this is due to investments made to support future growth. The period ended with a cash balance of EUR 4.5m (H1 2023: EUR 6.0m). Cyber-attacks are on the increase with serious consequences for the companies involved. Smarttech247's combination of artificial intelligence-led managed detection and response capabilities can help to significantly reduce the impact and help manage the situation. Strip Tinning Holdings 46p £8.4m (STG.L) The supplier of specialist connection systems to the automotive sector announces its full year results for the year ended 31 December 2023. Revenue increased to £10.8m (2022: £10.2m), adjusted EBITDA increased to £0.1m (2022: loss £2.2m) and there was a cash balance of £0.3m (2022: £1.3m). Strong momentum has already been demonstrated in 2024 with two significant new wins announced in the emerging "smart" glass market, in which Strip Tinning benefits from first mover advantage, with sales growth coming in 2025 once serial production commences. Transense Technologies 101.5p £15.4m (TRT.L) The Company announces that it has formally joined an Aerospace Technology Institute supported project, LANDOne, with Airbus to provide SAWsense technology and support the development of next generation landing-systems technology. LANDOne is a £37.8m project looking into new lighter, lower maintenance landing gear systems. Officially launched in 2022, Transense has joined the project due to the SAWsense technology potentially allowing critical measurements to be made that were not possible with other technologies. Vox Valor Capital* 0.2p £4.7m (VOX.L) The marketing technology, digital content, mobile games/apps and digital marketing Company announces its audited final results for the financial year ended 31 December 2023. Revenue decreased to $5.6m (2022: $13.8m), due to the disposal of the Russian subsidiary. There was an operating loss of $90k (2022: Profit $29k), total comprehensive income of $469k (2022: loss $5.5m) due to forex gains of $653k and cash balance of $144k (2022: $911k). The Company is continuing to identify potential acquisitions that are complimentary to the Group’s strategy where it can generate meaningful synergies from its mobile marketing expertise and technology. The organic growth plans of the Group include the expansion of the Group’s mobile marketing services and technology offer (Mobio) in the UK, Europe and the United States.
AVCT CLCO KIBO KOO POLB TRT
Trinity Delta view: Prioritisation of the Therapeutics division continues, with Christina Coughlin’s appointment as CEO (having been on the Board since March 2022 and Head of R&D since February 2024). Once the Diagnostics division has been divested, Avacta will become a fully focused biotech company. This strategy is underpinned by the proprietary pre|CISION platform, and lead peptide drug conjugate AVA6000. Completion of the two-weekly safety study and progression into dose expansion cohorts during H224 will give some idea on the potential indication(s) that may be pursued by Avacta in a subsequent Phase II efficacy study. Current cash, including the £31.1m fundraise, provides a runway into early 2026 to advance the therapeutics pipeline, and should cover a number of value inflection points in AVA6000’s development. Our valuation and forecasts are currently suspended (since the fundraise); our last published valuation was £672m (equivalent to 237p/share).
Today's news and views, plus announcements from: TSCO, DLG, VTY, AVCT, ETX, SAA, CPI, SDY, & THG.
As pre-announced, Avacta has presented the results of the 3-weekly P1 Arm 1 study of its AVA6000 lead clinical asset, based on the pre|CISION™ drug development platform at the American Association for Cancer Research's annual general meeting. The update does not cover progress on the ongoing 2-weekly dosing study which is underway, and Avacta confirmed current guidance on timing including being on track to begin the dose expansion study in 2H24. There are compelling updates on the progress reported last December, which continue to confirm that AVA6000 has a very favourable safety profile and is well tolerated by patients with encouraging signs of efficacy in multiple patients with tumours expressing high levels of Fibroblast Activation Protein Alpha (FAPα) which is what cleaves AVA6000, releasing doxorubicin as the active warhead in the tumour micro environment.
Trinity Delta view: The proprietary pre|CISION platform is key to Avacta’s investment case, hence updated data that continue to support key hypotheses for AVA6000 are reassuring. Future efficacy data from studies planned to start in H224 will be key, and could also help to more broadly validate pre|CISION. The recent £31.1m fundraise (March 2024 Lighthouse), which provides a cash runway of c 24 months ie into early 2026, will be used to advance the therapeutics pipeline, in particular AVA6000, and should cover a number of value inflection points in AVA6000’s development. Our valuation and forecasts are currently suspended; our last published valuation was £672m (equivalent to 237p/share).
Trinity Delta view: The upsized fundraise of £31.1m (gross), together with existing cash of £16.6m (at 1 January 2024), are expected to provide a cash runway of c 24 months (ie into early 2026) covering a number of value inflection points in AVA6000’s development pathway, which could bring opportunities for non-dilutive funding for the broader pre|CISION platform. Monetising Diagnostics through divestment would also bring in non-dilutive funding, but may, in our view, be targeted for later in this period, giving management time to embed the acquisitions, and improve the sales and profitability trajectory. As usual in such situations, we suspend our valuation and forecasts; for context our last published Avacta valuation was £672m (equivalent to 237p per share).
Avacta has announced an equity raise for up to £26.8m, since increased to £32.5m on strong demand. The funds raised are to progress the drug development pipeline, primarily for Avacta's lead clinical asset AVA6000, where the company anticipates a potential start of the expansion cohorts in several orphan diseases in 2H24 followed by the Phase 2 study, consistent with previous guidance. Avacta has also confirmed its intention to divest its Diagnostics division in a manner which maximises benefit for shareholders and to explore a possible NASDAQ listing. Cash at 1 January stood at £16.6m, which was significantly better than consensus expectations and indicates a sharp reduction in the pace of net cash utilisation in 2H23. Nevertheless, given the funding requirement to get AVA6000 into Phase 2 readiness and its importance to the Avacta investment thesis as the company's lead clinical asset, we believe this is a prudent step.
The therapeutics and diagnostics company last night announced plans to raise c.£27m to support the continued development of AVA6000 for the treatment of certain solid tumours. The raise consists of a direct subscription raising £14m at 50p/share, a conditional placing to raise £6m and a retail offe
Avacta’s proprietary pre|CISION platform is key to the investment case, and further details on lead programme AVA6000, a tumour targeted form of the chemotherapy doxorubicin, continue to support key hypotheses. Data show that AVA6000 is selectively activated at the target tumour site, resulting in lower toxicities, improved tolerability, and greater potency. This has translated into promising, albeit early, signs of clinical activity. AVA6000’s clinical success will help to validate pre|CISION, and could unlock an extensive opportunity to repurpose a range of proven, but currently sub-optimal, therapies, and alongside the Affimer platform, could be used in novel diagnostic and therapeutic applications. AVA6000 has now completed the seventh, and final, cohort of the Phase Ia three-weekly arm, with patient screening started in the two-weekly arm in the US. Data will direct the format of a potentially pivotal Phase II trial. News over the next 18-24 months should offer multiple value-inflection points. Our updated valuation including the Coris acquisition is £672m (237p/share).
Today's news and views, plus announcements from: ENT, SXS, WKP, SHRS, AVCT, & REVB.
Avacta has successfully enrolled all patients in the Phase 1a three-weekly dose escalation clinical study for its AVA6000 cancer drug. Dosing in Cohort 7, the last cohort in the study, has not reached a maximum tolerated dose (MTD), despite members receiving 3.5x the maximum tolerated equivalent dose of doxorubicin, unequivocally confirming the safety of AVA6000. Study results also demonstrate that AVA6000 delivered the concentrated release of doxorubicin at the site of cancer at therapeutic levels and showed encouraging preliminary signs of anti-tumour activity. Flagged in the interims and having received regulatory approval, Avacta is now screening patients for its revised clinical development strategy that could enable Phase 2 trials from next year with potential commercial sales starting in 2026/27. On that basis we calculate the current value of AVA6000 alone at 106p rising to 217p on the implementation of Phase 2 testing.
Meeting Notes - Nov 02 2023
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Avacta operates a hybrid business model. On the one hand, it is an early-stage therapeutics business with two discovery platforms and a broad but early-stage pipeline. On the other, it is a diagnostics business pursuing an M&A strategy to achieve global scale. In this note we highlight various
Today's news and views, plus announcements from: AAL, NG., GRI, FAN, UTG, WAND, & AVCT.
Trinity Delta view: The potential for long-term value creation in both Avacta divisions is highlighted by: (1) clinical momentum in Therapeutics as lead pre|CISION asset AVA6000 approaches key data read out and initiation of the first potentially registrational trial; and (2) by the commercial momentum in the maturing Diagnostics business as it advances towards self-sustainability. Avacta’s near- and medium-term Therapeutics prospects are underpinned by the pre|CISION platform, with AVA6000 data helping to validate the platform’s tumour targeting potential and providing the blueprint for a pipeline of related products, such as AVA3996. Accelerated clinical development for AVA6000 could mean approval of the first pre|CISION targeted chemotherapy towards end-2026. Our current Avacta valuation is £641m (equivalent to 228p per share).
Avacta reported revenue for the interim period to the end June of £11.9m, more than doubled YoY, reflecting the growth in the contribution from the Diagnostics Division, including an initial contribution from the Coris acquisition completed in June. However, the main driver to the company's share price performance remains progress in the clinical trials of the AVA6000 compound where the company recently announced the successful completion of dosing in cohort 6 in the Phase 1A trial and a proposed accelerated clinical development strategy aimed at enabling Phase 2 testing to commence in 2024.
Avacta has two proprietary drug development platforms, pre|CISION™ and Affimer® and two divisions, Therapeutics and Diagnostics, of which Therapeutics dominates valuation. Avacta is currently shepherding its AVA6000 agent, the first fruit of its pre|CISION™ platform, through Phase 1a clinical trials with highly promising but early stage initial results. While this compound alone could easily be worth £10/share, given the high risk of clearing all clinical trials and the time value of money, we calculate a current value of 18p/share rising to 83p/share should commercialisation commence straight after Phase 2 trials. Avacta hopes to move to Phase 1b testing for AVA6000 later this year and, with £42m in cash at YE22, could be fully funded to Phase 2 trials.
Today's news and views, plus announcements from: BKR, LIO, THG, LOOK, AVCT, GHH, & HSS.
Trinity Delta view: Avacta’s acquisition of Coris is another step on the pathway to create a full spectrum Diagnostics business that has sufficient product mass and geographic reach to become self-sustaining, both in terms of profitability and new application development. This second deal, following on the heels of Launch Diagnostics in October 2022, provides further momentum to the ‘buy and build’ strategy. While progress in Avacta’s Therapeutics business means it remains in the spotlight, we continue to believe that the less high-profile developments within the Diagnostics division should not be overlooked, and have the potential to create a uniquely positioned Diagnostics business. In terms of forecasts and valuation, at this stage, we view this latest acquisition as a relatively minor factor and will make the necessary adjustments as part of a regular review. Hence, we maintain our current Avacta valuation of £641m (equivalent to 228p per share).
Today's news and views, plus announcements from: AUTO, PNN, DOCS, MEGP, CPI, AVCT, TEAM, & UOG.
Avacta Group PLC United Oil & Gas Plc
Avacta’s two proprietary platforms, Affimer proteins and pre|CISION, are central to its plans to create novel diagnostic and therapeutic products. Recent operational and strategic developments during 2022 lay the foundations for unlocking value from its Therapeutics and Diagnostics divisions. Further data from lead asset AVA6000 should confirm the clinical utility of pre|CISION, with a wider portfolio being readied to exploit the platform’s tumour-specific activation. An M&A-led growth strategy, leveraging both internal capabilities and the Affimer platform, should create a self-sustaining Diagnostics business. News flow over the next 18-24 months provides multiple value-inflection points. Our valuation is £641m, equivalent to 228p/share.
Trinity Delta view: FY22 results reveal the financial, operational, and strategic progress made across both Avacta’s Therapeutics and Diagnostics divisions. The pre|CISION platform underpins the near- and medium-term prospects of its Therapeutics business, with emerging data from lead asset AVA6000 effectively validating the pre|CISION platform’s tumour targeting potential and providing the blueprint for an extensive pipeline of related products. AVA3996, the second pre|CISION asset, could enter the clinic within 12 months. The Diagnostics M&A-led growth strategy, seeded with the Launch Diagnostics acquisition, and complemented by internal capabilities and the proprietary Affimer platform, should create a self-sustaining Diagnostics business. Our current Avacta valuation is £587m, equivalent to 221p per share.
Today's news and views, plus announcements from: HSBC, AGR, AVCT, SMD, DXRX, CYAN, TRST, & KAV.
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Today's news and views, plus announcements from: AAL, BAE, RR., WPP, GNS, UKW, HIK, HWDN, MGNS, AVCT, RQIH, & TRR.
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Today's news and views, plus announcements from: BHMG, DGI9, SUPR, AVCT, KAPE, FRP, & BRCK.
Trinity Delta view: The pre|CISION platform underpins the near- and medium-term prospects of Avacta’s Therapeutics division, and the progress of the lead programme AVA6000 effectively acts as validation of the pre|CISION platform’s tumour targeting potential. Biopsy results demonstrate a materially higher doxorubicin tumour localised concentration than in equivalent blood levels, while the fourth dosage cohort results again demonstrate lower toxicities and side-effects than would have been predicted. Although the addition of higher dose cohorts extends the results of the Phase Ia element of the trial into H123, the delay should be viewed as a positive. Successful proof-of-concept should provide the blueprint for an extensive pipeline of related products. Further detail may be shared at Avacta’s upcoming Therapeutics Division Science Day (February 23). AVA6000 is the largest single element of our rNPV model, £61.6m (equivalent to 23.2p a share), of our current Avacta valuation of £587m (or to 221p per share).
Avacta is seeking to capitalise on the positive perception shift in the diagnostic market since COVID-19 brought testing to the masses. An M&A-led growth strategy, complemented by internal capabilities, notably the proprietary Affimer platform, should create a self-sustaining Diagnostics business. The acquisition of Launch Diagnostics was the first step, with additional complementary targets being sought and the firepower to execute. Meanwhile in Therapeutics, lead asset AVA6000 continues to progress and should validate the pre|CISION platform’s clinical utility. This remains the biggest near-term value driver. Our updated valuation is £587m, equivalent to 221p/share with potential upside from positive AVA6000 updates.
Today's news and views, plus announcements from: PSN, AVV, ABF, IMI, WHR, 3IN, AVCT, & AGFX.
Avacta Group PLC Persimmon Plc
Trinity Delta view: The acquisition of Launch Diagnostics, at an undemanding 1.35x sales multiple (based on an 80% discount to COVID revenues), is the first step in Avacta’s M&A-led growth strategy for its Diagnostics Division. Launch Diagnostics will provide Avacta with a commercial infrastructure in the UK and some EU markets, to which complementary products could be added either organically through in-house development or sought externally. The latter potentially provides the opportunity for Avacta to leverage its internal expertise and platform technologies to optimise performance and economics. The proposed up to £64m gross financing would provide the balance sheet flexibility to explore such opportunities. As usual, we suspend our valuation and forecasts until deal completion.
Trinity Delta view: Avacta’s H122 results confirm operational progress in both the Therapeutics and Diagnostics divisions. AVA6000, the lead Therapeutic asset, remains the largest single element of our valuation model; continuing clinical progress bodes well as it not only represents an important value driver for Avacta, but successful proof-of-concept would validate the wider pre|CISION platform and boost appreciation of its potential utility. Reassuringly, the drug development collaborations (leveraging the pre|CISION and Affimer platforms) are also advancing. In Diagnostics, Avacta has embarked on building a broad yet focused IVD product portfolio. Our Avacta valuation is £557m (equivalent to 219.1p per share), with news flow over the next 18-24 months expected to provide multiple value-inflection points.
Trinity Delta view: Continuing progress of AVA6000 is an important value driver for Avacta with this programme representing the largest single element of our rNPV model. A successful proof-of-concept would result in a material uplift in our AVA6000 valuation. Importantly, this would also provide validation to the broader pre|CISION platform, leading to a wider appreciation of its potential utility. Our current Avacta valuation is £557m (equivalent to 219.1p per share), with AVA6000 valued at £51.9m (or 20.4p per share), and the remaining pre|CISION platform comprising £261.2m (or 102.7p per share). News flow over the next 18-24 months should also provide multiple value-inflection points.
Today's news and views, plus announcements from: BME, GSK, ULVR, BEZ, FXPO, PNN, AUY & AVCT.
Avacta Group PLC Yamana Gold Inc.
Avacta employs its two proprietary platforms, Affimer and pre|CISION, to create novel diagnostic and therapeutic products. The COVID-19 pandemic thrust its ability to develop an Affimer-based LFT (lateral flow test) diagnostic into the spotlight, even though we believe greater long-term value lies within Therapeutics applications. While the COVID-19 opportunity didn’t pan out as many investors expected, it did showcase Avacta’s diagnostics capabilities and Affimers’ potential. Lead therapeutic asset AVA6000 is progressing through Phase I and should confirm the clinical utility of pre|CISION. A wider portfolio of products is being readied to exploit the platform’s tumour specific activation, which should result in greater potency and less toxicity. News flow over the next 18-24 months provides multiple value-inflection points. Our valuation is £557m, equivalent to 219p/share, from £710m, 280p/share previously.
Today's news & views, plus announcements from RIO, ELM, JUST, ANX, AVCT, BLTG, BRCK, INL & THG.
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▪ Avacta’s H121 results show a healthy cash position of £37.0m vs £47.9m at end-December 2020 and £54.5m at end-June 2020. Revenues were £2.3m (H120: £1.8m), with operating loss of £11.3m (H120: £8.1m) and net loss of £10.2m (H120: £7.9m). This was driven largely by the increase in R&D investment to £10.2m (H120: £7.0m). First shipments of AffiDX SARS-CoV-2 antigen lateral flow test (LFT) were made post-period end. Avacta’s strong balance sheet provides a cash runway through to 2023. ▪ The Diagnostics division remains in the spotlight. Clinical validation studies have demonstrated that the AffiDX SARS-CoV-2 LFT has a clinical sensitivity of 98.0% and clinical specificity of 99.0%, with later data showing a specificity of 99.6%. The LFT was proven to be effective in detecting the Alpha, Beta, Gamma, and Delta variants. The European CE Mark for professional use is in place, with a broadening of approvals for both use and other geographies underway. Several distribution agreements have also been secured. ▪ The Therapeutics division achieved a key milestone, with the start of a Phase I study with AVA6000 marking Avacta’s transition to a clinical stage company. AVA6000, a pre|CISION prodrug of doxorubicin, offers potentially improved efficacy and reduced toxicity. If clinical data confirms this, it will validate the pre|CISION platform and pave the way for many related programmes. An IND submission for clearance to start a Phase I trial in the US is planned before end-2021. ▪ Of Avacta’s two therapeutics platforms, the Affimer platform has the larger commercial opportunity as these synthetic antibody mimetics have wide applicability as therapeutic products. However, the pre|CISION platform offers a shorter and quicker route to validate its scientific premise. Clinical success for either would lead to a healthy pipeline of development candidates.
Avacta’s H121 results show a healthy cash position of £37.0m vs £47.9m at end-December 2020 and £54.5m at end-June 2020. Revenues were £2.3m (H120: £1.8m), with operating loss of £11.3m (H120: £8.1m) and net loss of £10.2m (H120: £7.9m). This was driven largely by the increase in R&D investment to £10.2m (H120: £7.0m). First shipments of AffiDX SARS-CoV-2 antigen lateral flow test (LFT) were made post-period end. Avacta’s strong balance sheet provides a cash runway through to 2023.
Avacta has announced the dosing of the first patient in its Phase I study of AVA6000. AVA6000 is a FAP-activated prodrug of the established cytotoxin doxorubicin and is the first of Avacta’s therapeutic programmes based on its proprietary pre|CISION technology. Our June 2021 Initiation provides more detail on AVA6000 and pre|CISION.
Avacta is a UK-based diagnostic and nascent clinical stage drug development company. Much investor attention has focused on the near-term commercial opportunities for its point-of-care COVID-19 LFT (lateral flow test). Attractive as these prospects are, we argue greater long-term value lies within the Therapeutics pipeline. The first programme from the two proprietary platforms, Affimer and pre|CISION, is set to enter human trials. Successful clinical results would validate the concept and support a material broadening of the pipeline. Ample news flow is expected over 18-24 months, providing multiple value-inflection points. Our valuation is £710m, equivalent to 280p/share.
FY results to 31 December 2020 contain few surprises following the February update, with year-end cash of £47.9m and a higher than expected adjusted net loss of £14.0m (FC est £11.8m) due largely to fully expensed R&D. Focus turns to the imminent CE marking and launch of its AffiDX SARS-CoV-2 antigen lateral flow test in May, following the recent clinical validation data. With this major de-risking event behind us and confirmation that GAD has manufactured batches at scale, we now look forward to commercial deals, given that Avacta is in active discussion with distributors in 25 EU markets. We remain very excited by the opportunities that exist in both businesses and reiterate our SOTP-based 310p target price.
The partnership established with Mologic, initially to ensure that Avacta is able to CE mark its SARS-CoV-2 rapid antigen test (AffiDX™) without delays, is further evidence of how close Avacta is to commercialising its rapid antigen test (LFT) as it continues to scale manufacturing partnerships also. It provides a practical and low-risk route to CE marking during Q1 before achieving its own ISO13485 accreditation, which is now expected by 31 March 2021. Avacta intends to provide a detailed business update later this month once definitive clinical data from the lateral flow test evaluation in Europe is available, that should also evidence progress of pre|CISION therapy (AVA6000) to first-in-man clinical studies. The confidence suggests that tech transfer to its manufacturing partners (BBI Solutions and Abingdon Health) is progressing well. We reiterate our 310p SOTP target price.
After a tumultuous 2020, where do we go in 2021? It is tempting to think that we are now out of the woods, with the arrival of a shiny new year. I am optimistic longer term, but in the shorter term UK business has a thin trade deal with the EU to contend with that is undoubtedly going to cause disruption and costs for many sectors (manufacturing, food & drink, services etc) while, despite the initiation of a vaccine programme, COVID continues to surge in the UK. It’s going to be a tricky few quarters and the economy is likely to be more than usually sensitive to governmental financial support. So against this backdrop, we are presenting our ‘12 for 21’. More than ever, there is no particular theme this year. We have simply looked for the companies that potentially offer strong upside, be it from organic growth, restructuring, M&A, the trend towards ESG or promising emerging therapies. Happy New Year! Raymond Greaves – Head of Research – rgreaves@finncap.com – 020 7220 0533
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Oxford University and AstraZeneca announced the first interim analysis from the Phase III study of its COVID-19 vaccine candidate, which was found to be 70% effective in preventing COVID-19. This follows similar announcements from Moderna, and Pfizer/BioNTech in the previous two weeks, and the caveats we mentioned at the time remain the same. While all of these results have been highly encouraging, we reiterate that they do not diminish the urgent need for COVID-19 treatments and testing, which will be required for years to come. We consider Synairgen, Avacta, genedrive, Omega Diagnostics and Open Orphan to offer good buying opportunities.
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Avacta (AVCT): Corp | Evgen Pharma (EVG): Corp
Avacta Group PLC TheraCryf PLC
Moderna announced the first interim analysis from the Phase III study of its COVID-19 vaccine candidate, which was found to be c.95% effective in preventing symptomatic COVID-19 disease. This follows a similar announcement from Pfizer/BioNTech last week, and the caveats we mentioned at that time remain the same. AstraZeneca-Oxford University are also due to announce initial results this month. While these results are highly encouraging, we reiterate that they do not diminish the urgent need for COVID-19 treatments and testing, which will still be required for years to come, and we outline why. We consider Synairgen, Avacta, genedrive, Omega Diagnostics and Open Orphan to offer good buying opportunities.
Pfizer and BioNTech announced the first interim analysis from the Phase III study of its COVID-19 vaccine candidate, which was found to be >90% effective in preventing COVID-19. While the results are very promising, we believe there was a large over-reaction in the market in response to the news. It should not have been unexpected – we hoped for positive results from vaccine manufacturers this month, and we hope there is more to come, as AstraZeneca-Oxford University and Moderna are also due to announce initial results this month, and overall there are 11 vaccines in Phase III testing. However, these early results do not diminish the urgent need for COVID-19 treatments and testing, which will still be required for years to come, and we outline why. We consider the price falls to stocks such as Synairgen (-39%), Avacta (-36%), genedrive (-38%), Omega Diagnostics (-25%) and Open Orphan (-9%) to offer good buying opportunities.
ANGLE (AGL): Corp | Avacta (AVCT): Corp | Open Orphan (ORPH): Corp | Surface Transforms (SCE): Corp | Tracsis (TRCS): Corp
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Interim results to 30 June reflected a step-up in research activity post-June fundraise as it seeks to take its first pre|CISION targeted chemotherapy into clinical trials in early 2021. With period-end cash of £54.5m, Avacta has a cash runway into 2023, providing the necessary working capital to deliver a rapid SARS-CoV2 antigen test, take AVA6000 into the clinic, as well as its first Affimer immunotherapy and the next pre|CISION pro-drug into the clinic. Avacta is aiming to have validated its rapid SARS-CoV-2 antigen test in Q4 2020, the exact timing of which is dependent on pilot batch product from BBI Solutions. However, it is increasingly clear that there is a need for mass screening tests to isolate and remove infectious people, with Avacta’s test at the forefront. We have made changes to FY 2020 forecasts, introduce FY 2021 forecasts and a target price of 310p with a range of 211-796p.
Destiny Parma (DEST.L): Collaboration to develop a COVID-19 treatment | Avacta (AVCT.L): Planned launch of lab-based test for the detection of COVID-19 | ValiRx (VAL.L): Half-year report
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Avacta (AVCT): Corp | Belvoir Group (BLV): Corp | Byotrol (BYOT): Corp | Chariot Oil & Gas (CHAR): Corp | Destiny Pharma (DEST): Corp | Omega Diagnostics (ODX): Corp | SRT Marine Systems (SRT): Corp | Telit (TCM): Corp
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Oncimmune Holdings (ONC.L): Collaboration with leading global biopharma | Avacta (AVCT.L): Manufacturing agreement with Abingdon Health
Avacta Group PLC Oncimmune Holdings Plc
Avacta (AVCT.L): Update on Affimer therapeutics development partnership | Faron Pharmaceuticals Oy (FARN.L): Traumakine update
Avacta Group PLC Faron Pharmaceuticals Oy
Avacta (AVCT): Corp | City of London Group (CIN): Corp | Robinson (RBN): Corp | Telit (TCM): Corp
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Avacta (AVCT): Corp COVID-19 test – manufacturing partner appointed | D4T4 Solutions (D4T4): Corp H1 is in line with expectations; offering good value | STM (STM): Corp Implementing the plan amid an uncertain backdrop
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Edison Investment Research is terminating coverage on Avacta Group (AVCT), BCI Minerals (BCI), Destiny Pharma (DEST), Globalworth Real Estate Investments (GWI), Henderson Alternative Strategies Trust (HAST), Herantis Pharma (HRTIS), Jupiter Green Investment Trust (JGC) and Rockhopper Exploration (RKH). Please note you should no longer rely on any previous research or estimates for these companies. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website
Avacta Group plc (AVCT): Expansion of agreement with Daewoong Pharmaceutical
Avacta (AVCT): Corp | Gemfields (GEM): Corp
Avacta Group PLC Gemfields Group Limited
Avacta (AVCT.L): Adeptrix COVID-19 Diagnostic Test update | Diaceutics (DXRX.L): New contract win
Avacta Group PLC Diaceutics Plc
Access Intelligence (ACCI.L): Corp Half-year trading update | Avacta (AVTG.L): Corp Potential COVID-19 therapeutic – progress | Synairgen (SNG): Corp COVID-19 home setting trial amendments | Tremor (TRMR): Corp Strong Q1 before large COVID-19 impacts in Q2
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Avacta (AVTG.L): Corp | Europa Oil & Gas (EOG): Corp | Omega Diagnostics (ODX): Corp | Redcentric (RCN): Corp | Telit (TCM): Corp
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Avacta has conditionally raised £45m net to (i) accelerate the expansion of its therapeutics pipeline, given recent pre-clinical data for both its pre|CISION and TMAC drug conjugate platforms, and (ii) provide the necessary working capital to fund the development and deployment of a COVID-19 antigen test in the summer of 2020 as well as scale its broader diagnostics business more rapidly. These funds will also generate first-in-man data (safety and tolerability) for the Affimer platform, which will significantly de-risk the platform in the eyes of potential pharma partners, accelerate its partnership model and substantially increase future deal values. We leave our target price under review, although using a SOTP analysis, it is easy to generate a valuation that is substantially in excess of the current market capitalisation.
Avacta (AVCT): Corp
Avacta is leveraging the antibody-like properties of Affimers for Therapeutic and Diagnostic applications across multi-billion dollar markets, including testing and treatment for COVID-19, building a differentiated pipeline and global partnerships. The near-term key is the roll out of its SARS COV-2 antigen tests, including potentially one of the first Point-of-Care tests to-market, offering game-changing commercial scope, sufficient to significantly accelerate the clinical development of its Therapeutic pipeline.
Avacta (AVCT.L): COVID-19 project update
Avacta (AVCT): Corp Potential COVID-19 therapeutic | D4T4 Solutions (D4T4): Corp Celebrus v9.2 offers embedded machine learning | Sopheon (SPE): Corp COVID-19 trading update
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Avacta (AVCT.L): Antigen test update | Open Orphan (ORPH.L): COVID-19 Antibody Testing Partnership
Avacta Group PLC hVIVO plc
Avacta (AVCT): Corp | Elecosoft (ELCO): Corp | KRM22 (KRM): Corp
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Avacta (AVCT.L): Preliminary results
Avacta (AVCT): Corp | ClearStar (CLSU): Corp | Independent Oil & Gas (IOG): Corp
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Full-year results (17 months) to 31 December 2019 were in line with expectations, with a year-end cash balance of £8.8m (FC est. £8.7m). Despite the disruption caused by the COVID-19 pandemic, Avacta has a cash runway into 2022, by which time it should have delivered at least two transformational value inflection points in each of the Therapeutics and Diagnostic business units. Pursuing a proprietary and partnership approach creates potential substantial incremental value, as evidenced by the four therapeutic and three diagnostics partnerships, whilst enabling Avacta to focus on its lead programme, which is now expected to enter Phase I trials in late 2020 or early 2021. We consider Avacta to be at a very exciting point in its evolution, with multiple significant valuation drivers.
Avacta (AVCT.L): Adeptrix collaboration | Genedrive (GDR.L): Manufacturing update for SARS-CoV-2 test
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Avacta (AVCT): Corp Further exploiting its Affimer IP in COVID-19 | HML Holdings (HMLH): Corp Trading update | Independent Oil & Gas (IOG): Corp Another major milestone achieved | Shield Therapeutics (STX): Corp Business and trading update
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Avacta (AVCT.L): Cytiva collaboration update
Avacta (AVCT): Corp | Chaarat Gold Holdings (CGH): Corp | Shield Therapeutics (STX): Corp
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Avacta (AVCT): Corp | D4T4 Solutions (D4T4): Corp | Real Good Food (RGD): Corp | SRT Marine Systems (SRT): Corp
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Avacta announced that it has entered into a collaboration with Cytiva, formerly known as GE Healthcare Life Sciences, to develop and manufacture an Affimer-based point-of-care (POC) rapid test to diagnose COVID-19 infection, with the intention of screening large populations and addressing the current hurdles and bottlenecks that exist for scaling such tests globally. Drawing on the global scale of Cytiva, which will ultimately be needed to bring such a test rapidly to the market, this collaboration highlights Avacta’s diagnostics capabilities as well as the potential to unlock significant near-term value. We are making no changes to forecasts or target price, preferring instead to monitor progress in the rapidly changing competitive landscape. Suffice to say, the market opportunity for a cost-effective high volume test is significant (>$1bn). The upside, if successful is substantial, as illustrated by the c£150m value created by Novacyt’s COVID test.
Access Intelligence (ACC): Corp | Avacta (AVCT): Corp | City of London Group (CIN): Corp | InnovaDerma (IDP): Corp | Quixant (QXT): Corp
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Further to the announcement on 2 April, indicating that the company was raising £2m through a subscription of shares at 18p, and in response to substantial institutional interest, Avacta has conditionally raised further gross proceeds of £3.75m at 18p per ordinary share. These funds will be put towards the key objectives outlined in October 2019, primarily to complete the Phase I clinical trial of AVA6000 (pro-doxorubicin) as well as strengthening the balance sheet in light of the uncertainty that the coronavirus pandemic brings. We expect cash at 31 December 2020 to be c.£8.7m, which provides a runway into late 2021/early 2022 at the current monthly cashburn. Despite the dilution afforded by the additional shares, we retain a target price of 76p, which implies an enterprise value of c.£150m, and is supported by the notion that the company is fully funded to complete the Phase I trial of its lead asset, AVA6000 (pro-doxorubicin).
Avacta (AVCT.L) Trading update and £2m subscription
Avacta announced that it is raising £2m by way of a subscription for 11.1m ordinary shares at 18p (follows £9m raise in October 2019 at 15p per share), subject to a general meeting. Given the current economic uncertainty and disruption caused by the coronavirus outbreak, we think this is prudent as it extends the cash runway further into 2021. Not only does this create a cash buffer for any unseen disruption, but it also provides additional time to advance its immunotherapy pipeline with partners (fully funded by the partners), as well as delivering further commercial progress for both therapeutics and diagnostics. Avacta confirmed that it will file a CTA application as soon as possible, seeking the UK regulator’s permission to commence a Phase I safety study for its lead drug candidate (AVA6000 – pro-doxorubicin). This is on track to start in late 2020, having made good progress in manufacturing drug product. We retain a target price of 76p.
Avacta (AVCT): Corp TMAC – proof of concept for novel Affimer conjugate | LPA Group (LPA): Corp Full-year results: a year of recovery ahead | Sopheon (SPE): Corp Positive trading update
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Avacta (AVCT): Corp | Avingtrans (AVG): Corp | Europa Oil & Gas (EOG): Corp | Surface Transforms (SCE): Corp
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Avacta released a positive trading update for the 17 months to 31 December, with revenues and cash both £0.4m higher than we expected (8% and 5% higher, respectively). This was driven by customer Affimer evaluations and services relating to its partnership programmes, which in turn drove year-end cash. Avacta continues to build value into the business by progressing its proprietary therapeutics assets and partnered programmes, which now extend to four (Moderna Therapeutics, LG Chem, ADC Therapeutics and Daewoong Pharmaceutical). Its focus remains on taking its first pre|CISION pro-drug (pro-doxorubicin) into the clinic in mid-2020, with first data expected by year-end. We maintain our target price of 76p.
Avacta has announced a joint venture with Daewoong Pharmaceuticals to develop mesenchymal stem cell (MSC) therapies incorporating Affimers. The joint venture (JV), will be based in South Korea and entirely funded by Daewoong with Avacta providing no financial investment. Avacta will develop Affimers (and be reimbursed by Daewoong for all research and development costs) for several undisclosed targets in inflammatory and autoimmune disorders. Avacta will have a 45% shareholding in the new company, will not contribute financially to the JV, and will retain the rights to any Affimers developed for the JV outside of their use in engineered cell therapies. We do not currently include the JV in our valuation due to its early nature; however, we view the deal positively and will reassess as work progresses. We retain our valuation of Avacta at £47m.
Avacta (AVCT): Corp Cell therapy JV with Daewoong Pharmaceutical | Lok'nStore (LOK): Corp Second collaboration with Lidl | Shield Therapeutics (STX): Corp China licence - $62.8m bio-dollar deal | Shoe Zone (SHOE): Corp FY19 better than expected; reinvigorated focus evident
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In this video, Alastair Smith, CEO of Avacta Group, discusses the progress the company has made this year. This includes new and expanded partnerships, operational and financial achievements, and the advancement of AVA6000 towards the clinic.
Avacta (AVCT): Corp LG Chem partnership expanded | Hardide (HDD): Corp F-35 approval and patent granted | Ideagen (IDEA): Corp Strong interim trading update
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Avacta’s 12-month results to July 2019 highlight ongoing momentum, as evidenced by three new partnerships (LG Chem, ADC Therapeutics and New England Biolabs), advancement of its pipeline towards the clinic and robust revenue growth in its research and diagnostic reagents division. Avacta recently announced a multi-target (focused on cancer) collaboration and licensing agreement with ADC Therapeutics to develop Affimer drug conjugates, providing further validation for Avacta’s technology. Avacta’s pro-doxorubicin compound AVA6000 (utilising Tufts’ linker technology) is expected to start clinical trials in Q220, while lead Affimer AVA004 (PD-L1) is shortly expected to complete cell line development. We value Avacta at £47m or 40p/share.
Avacta (LON:AVCT) is preparing for a crucial year in its cancer therapeutics programmes in 2020e, with an opportunity now identified for a targeted chemotherapy programme to enter clinical trials during the first half (H1) of 2020. The company has released its interim results to July 2019 (released
Avacta is a preclinical stage biopharmaceutical company engaged in the development of its proprietary therapeutic platforms (Affimer® immuno-oncology drugs and targeted chemotherapy) as well as generating early revenue through licensing Affimer reagents for research and diagnostics. Avacta has raised £9m, subject to a General Meeting, to fund the Phase I clinical trial of AVA6000 (pro-doxorubicin) and advance its immunotherapy pipeline with partners, as well as delivering further commercial progress for both therapeutics and diagnostics. This should lead to a substantial licensing deal for AVA6000, given the shortcomings of doxorubicin (cardiotoxicity) and size of the existing market (c.$1bn). Underpinned by the value in its reagents business and with significant upside to come from its therapeutics business that is already endorsed by the likes of LG Chem, Tufts, ADC Therapeutics and Moderna Therapeutics. We retain a target EV of c.£125m. This is based on analysis of comparable companies and implies a target price of 76p.
Avacta has announced a collaboration and licensing agreement with ADC Therapeutics to develop multiple Affimer drug conjugates. The conjugates will combine Avacta’s Affimers with ADC’s warhead and linker technology. The collaboration is multi-target and will aim to generate Affimer binders to three undisclosed cancer targets. ADC will be responsible for all pre-clinical research and development except for Affimer selection, which will be carried out by Avacta. The agreement includes an option on each target to gain an exclusive clinical and commercial licence. Avacta will also be eligible to receive option fees, development and commercial milestones and single-digit royalties. Additionally, ADC will cover Avacta’s costs during the collaboration. No further financial details were announced. We retain our valuation of Avacta at £51m or 44p/share.
Avacta (AVCT): Corp Manufacturing partner for first therapeutic selected | Best of the Best (BOTB): Corp Resilient FY19; more upgrades | LPA Group (LPA): Corp Interim results – Initiation of coverage | Savannah Resources (SAV): Corp Completion of acquisition | STM (STM): Corp Momentum beginning to build in the UK
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Avacta is developing its Affimer technology for use in therapeutic and diagnostic/reagent applications. The potential of the Affimer technology lies in its formatting capabilities, particularly in the creation of bispecific and TMAC Affimer drug conjugates. Its lead therapeutic asset (AVA004) is a programmed death-ligand 1 (PD-L1)-targeting Affimer for which the company expects to submit an investigational new drug (IND) application in Q420. AVA004 will serve as the first clinical validation of the Affimer technology and will form the base of the clinical development of a PD-L1/LAG-3 bispecific (AVA021) and the first TMAC Affimer drug conjugate (AVA004/100). We value Avacta at £51m or 44p/share.
Avacta (AVCT): Corp PD-L1 candidate selected | Avesoro Resources (ASO): Corp Operational update, revised production, cost guidance | Ideagen (IDEA): Corp Acquisition | Kingswood Holdings (KWG): Corp Building strong foundations, ready to execute
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Avacta announced that it expects to submit an IND/CTA application early in 2020 to test the TMAC linker with doxorubicin in a Phase I study in patients with selected solid tumours. The linker is a critical element of the novel Affimer TMAC platform that Avacta is co-developing with Tufts University Medical School, the first product (PD-L1/i-DASH inhibitor) from which is expected to enter the clinic in 2021. Not only is this testing of the TMAC linker well ahead of original plans, but it potentially creates additional sources of non-dilutive funding from licensing the linker to create effective chemotherapeutic pro-drugs that are currently limited by dose-limiting systemic toxicities. Proving the enzyme-sensitive linker works in humans also increases the prospect of licensing the Affimer TMAC platform before clinical data are generated from its first Affimer TMAC.
Avacta Group PLC (LON:AVCT) reported interim results to January 2019, confirming good progress on key development programmes Lead immune checkpoint inhibitor programmes continue to move towards in-man clinical data in 2020 Major development partnership and licence agreement with LG Chem potentially w
Avacta reported an adjusted net loss of £5.0m with period-end cash of £11.8m. This included a $2.5m milestone from LG Chem, which marked the company’s first significant therapeutics licensing deal that is worth up to $300m. Moreover, the collaboration with Tufts University provides a technology platform that is sufficiently differentiated to drive potentially high-value pre-clinical licensing deals. Avacta remains on track to take its first Affimer into Phase I trials in late 2020. Significant progress continues to be made in non-therapeutic applications that include at least two in-house diagnostic assay development programmes with further licences expected in 2019. The share price performance belies the scientific progress made during the period. Our 125p price target is unchanged.
Avacta (AVCT): Corp Interims – a transformatory first half | Destiny Pharma (DEST): Corp FY 2018 results – Phase IIb to start this month | Gooch & Housego (GHH): Corp Half-year trading update
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Avacta (AVCT) is a pre-clinical stage biotechnology company and the proprietary owner of Affimer technology. Affimers represent a radical alternative to the established antibody technology. The significant technical and commercial benefits of Affimers are being increasingly recognised, evidenced by corporate and academic interests, ongoing evaluations and deal flow. AVCT has just announced that, following a review period, Moderna has exercised its option to enter into an exclusive licensing agreement to further develop certain Affimer therapeutics for undisclosed targets. This is the second licensing deal with a major pharma player in the past few months.
Avacta (AVCT): Corp AGM business update – preclinical progress on 2 fronts | K3 Capital (K3C): Corp Confident positive outlook | Lighthouse Group (LGT): Corp Streamlining increases simplicity and focus on growth | Robinson (RBN): Corp FY 2018 trading at least in line with expectations
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Avacta (AVCT): Corp CMO with the right pedigree | Netcall (NET): Corp AGM statement and trading update
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Avacta announced a significant therapeutic development partnership and licence agreement with LG Chem Life Sciences. With a potential total deal value of $180m plus royalties, the multi-target collaboration is to develop and commercialise Affimer® therapeutics in inflammatory disorders and oncology. Avacta may receive an additional $130m in option fees and milestone payments should LG elect to exercise their options for additional targets. Not only is this a significant endorsement of the therapeutic potential of Affimers, but it provides additional near-term cash to help progress its lead oncology programme, which is targeted to enter the clinic in 2020. With a rich pipeline of interest in the reagent portfolio and ongoing discussions with other pharma companies, we expect further licensing activity. We estimate the risk-adjusted NPV of this deal, based only on the potential milestones to be worth 12-17p. We retain a target price of 120p.
Avacta (AVCT) is a pre-clinical stage biotechnology company and the proprietary owner of Affimer technology. Affimers represent a radical alternative to the established antibody technology. The significant technical and commercial benefits of Affimers are being recognised increasingly through corporate and academic interest, ongoing evaluations, and deal flow. AVCT has just concluded an Affimer therapeutics development and commercial agreement with the global pharma company, LG Chem, worth up to $310m in upfront and milestone payments. This represents a huge endorsement of the Affimer platform.
Avacta (AVCT): Corp Therapeutics development partnership with LG Chem | CyanConnode (CYAN): Corp Chinese deal comes with revenue recognition concerns | Hardide (HDD): Corp FY results – moving towards profitability | Mothercare (MTC): Corp On the right trajectory; early positive signs; much more to come | PCI Pal (PCIP): Corp Government contract underpins expectations | Photo-Me (PHTM): Corp Laundry continues on growth path | PPHE Hotel Group (PPH): Corp Amsterdam visit emphasises upside potential
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Avacta (AVCT): Corp Affimers licence – external endorsement | Avesoro Resources (ASO): Corp Youga – Ouaré drilling results and exploration update | Iofina (IOF): Corp Q3 2018 ops update | Omega Diagnostics (ODX): Corp Trading update
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Over the last year or so, management has delivered significant progress in bringing its Affimer platform into to the commercial stage, across both therapeutics and diagnostic applications.
Avacta reported FY 2018 results with a pre-tax loss of £10.4m and year-end cash some £0.2m higher than our forecast at £5.2m. The subsequent July fundraise (£11.6m) provided the funds to advance its two lead proprietary programmes – a bispecific PD-L1/LAG-3 Affimer and a novel Affimer Drug Conjugate (AfDC), (Tufts collaboration), which we highlight in this report. The potential for a preclinical licensing deal for the AfDC, given the feedback from early discussions with pharmaceutical companies, is considered likely. We have adjusted our forecasts to reflect the phasing of R&D into FY 2020 but make no changes to our target valuation, which remains 120p. With shorter-term licensing activity within its non-therapeutics activities expected in 2018/2019, we consider the risk reward profile to be skewed significantly to the upside given the current EV of £12m.
Avacta (AVCT): Corp FY 2018 results – an AfDC to consider | DX (DX): Corp Improvements starting to come through | Pelatro (PTRO): Corp Telenor agreement extended | Premaitha Health (NIPT): Corp £3m fundraise, FY 2018 results and trading update
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Avacta (AVCT) is a pre-clinical stage biotechnology company and the proprietary owner of Affimer technology. Affimers represent a radical alternative to the established antibody technology, which continues to dominate the drug industry, despite its limitations. The significant technical and commercial benefits of Affimers are being recognised increasingly through corporate and academic interest, ongoing evaluations, and deal flow. Avacta has successfully completed a Placing of shares to raise £11.6m (gross) to fund its therapeutic pipeline and to increase commercial traction of its Affimer platform for future licensing deals.
Avacta is a pre-clinical stage biopharmaceutical company engaged in the development of its proprietary technology platform (Affimers) with an in-house focus on novel immuno-oncology Affimer therapeutics as well as generating early revenue through licensing Affimer reagents for research and diagnostics. Avacta has raised £11.6m to advance its proprietary drug pipeline to the point of a partnering deal with large pharma and to take its lead asset, a bispecific PD-L1/LAG-3 Affimer, through IND-enabling studies to a clinic-ready candidate for first-in-man trials. Further funding and/or partnership income will enable Avacta to initiate a Phase I clinical trial for this programme in 2020. Underpinned by the value in its reagents business and with significant upside to come from its therapeutics business, we retain a target EV of c.£125m, which implies a target price of 120p given the new shares to be issued.
Avacta Group Plc (LON:AVACT) has recently finalised a co-development partnership with Boston-based Bach BioSciences, to exploit the potential of the Affimer platform for the development of a novel class of drug conjugates.
Avacta (AVCT) is a pre-clinical biotechnology company and the proprietary owner of Affimer technology. Affimers represent a radical alternative to the established antibody technology, which continues to dominate the drug industry, despite its limitations. The significant technical and commercial benefits of Affimers are being recognised increasingly through corporate and academic interest, on-going evaluations, and deal flow. A co-development partnership has been signed with Bach Biosciences (Tufts) for development of a new type of Affimer-drug conjugate (AfDC), that is already attracting attention from large pharma companies.
Avacta (AVCT) is a pre-clinical biotechnology company and the proprietary owner of Affimer technology. Affimers represent a radical alternative to the established antibody technology, which continues to dominate the drug industry, despite its limitations. The significant technical and commercial benefits of Affimers are being recognised through increased corporate interest, on-going evaluations, and deal flow. AVCT recently strengthened its board with the appointment of Eliot Forster, ex-Immunocore CEO, as non-executive Chairman. This move provides greater expertise in maximising the potential of the Affimers as a therapeutic platform.
Avacta (AVCT) is a pre-clinical biotechnology company and the proprietary owner of Affimer technology. Affimers represent a radical alternative to the established antibody technology, which continues to dominate the drug industry, despite its limitations. The significant technical and commercial benefits of Affimers is being recognised though increased corporate interest, on-going evaluations, and deal flow. The successful research collaboration with Fit Biotech provides evidence for the feasibility of using Affimer gene delivery in vivo. This represents an additional opportunity for Avacta to develop and partner Affimers as therapeutics.
Avacta (AVCT): Corp FIT for purpose
Avacta Group Plc (LON:AVACT) reported interim results for the six-month period to January 31st, 2018. The company made good progress on both the Affimer therapeutics and reagents programs. The company announced that a second I-O program (a LAG3 inhibitor) has progressed well allowing the company to leap-frog the planned first-in-man PD-L1 monotherapy and aim to take a PD-L1/LAG3 bispecific into the clinic on a similar time scale (2020). We believe that the PD-L1/LAG3 combo will have a much higher commercial appeal, as only half-dozen companies are currently working on PD-L1/LAG3 combinations and only two of those (Merck, Tesaro) have bispecific single molecules that are in pre-clinical trials. Avacta could catch up with these very quickly.
Avacta (AVCT) is a pre-clinical biotechnology company and the proprietary owner of Affimer technology. Affimers represent a radical alternative to the established antibody technology, which continues to dominate the drug industry, despite its limitations. The significant technical and commercial benefits of Affimers is being recognised though increased corporate interest, on-going evaluations, and deal flow. Meanwhile, AVCT has made stunning progress in its strategic goal to enter first-in-man trials in 2020, which now looks likely to be with a valuable bi-specific Affimer immuno-oncology asset.
The interim results showed an adjusted net loss of £3.75m and period-end cash of £8.3m, in line with our FY 2018 expectations. Continued growth in Affimer evaluations (+50%) and interest from pharma/biotech/diagnostics demonstrates the increasing awareness of its potential capabilities that, we expect, will result in license deals for non-therapeutics applications in the balance of 2018. The decision to take a bispecific PD-L1/LAG-Affimer into the clinic as its lead asset, generating Phase I clinical data in 2020/21, should deliver a considerably more valuable asset for partnering, given licensing precedence in this area (Merck paid €115m for access to a bispecific PD-L1/LAG-3 antibody). The scientific progress made during the period belies the share price performance. No change to TP.
Avacta (AVCT): Corp Interims – pathway to clinic with PDL1/LAG-3 | President Energy (PPC): Corp Upping the ante
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At the AGM of January 18th, Avacta reported good progress for both the Affimer therapeutic and reagents programs. Their lead immuno-oncology development program is proceeding according to plan and multiple development milestones are expected in the course of 2018 (see next section for further details).
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to antibody technology which dominates the drug industry. Avacta has made considerable progress towards its strategic goal to be ready to enter first-inman Affimer trials by the end of 2019. It is also using external collaborations to expand the opportunities for Affimer technology. Avacta has now announced a tieup with OncoSec Medical Inc to combine Affimers with the ImmunoPulse® electroporation technology to deliver Affimer therapies directly into tumours.
Avacta* (AVCT): Research collaboration – momentum building (CORP)
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to established antibody technology which dominates the drug industry. Avacta has made considerable progress towards its strategic goal to be ready to enter first-in-man Affimer trials by the end of 2019. In addition, Avacta is using external collaborations to expand the opportunities for its Affimer technology. A proof-of-concept study combining its Affimer technology with Glythera’s Permalink chemistry to generate Affimer Drug Conjugates has concluded successfully.
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to established antibody technology which dominates the drug industry, despite its limitations. Avacta has made considerable progress towards its strategic goal to be ready to enter first-in-man Affimer trials by the end of 2019. Recent results highlighted significant progress made in its in-house therapeutic programmes with the first in-vivo studies showing safety, tolerability and efficacy of an Affimer. This adds to the de-risking of Affimer technology and attracting potential partners.
Avacta* (AVCT): Research collaboration with FIT Biotech (CORP) | Redcentric* (RCN): New CEO, trading update highlights strong cash flow (CORP) | Intercede* (IGP): Interim trading update (CORP)
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Avacta reported FY 2017 results slightly ahead of expectations, ending the year with £13.2m cash at 31 July. Whilst the market continues to look for further external validation, Avacta continues to build incremental value as it remains on track to take its first asset into the clinic in 2019. Full year results demonstrated good financial stewardship and strong progress, reflected in the uplift in the order book for custom Affimer evaluations (+90% from 70% at H1) and the first non-therapeutics licensing deal with a global top-3 diagnostics company. This underscores the interest amongst large pharma/biotech as well as the diagnostics market. The expansion of its collaboration with Moderna Therapeutics, to include additional targets, is also highly encouraging. First sight of its pipeline includes eight immuno-oncology assets. Our target price remains 200p.
KEY INVESTOR MESSAGES • Avacta’s Affimer® technology is a proprietary alternative to antibodies with key technical and commercial benefits • Avacta is building a pipeline of Affimer drugs for immuno-oncology and growing revenues based on a licensing model for Affimer reagents • Excellent progress in both parts of the business during the reporting period substantially de-risking the opportunity • A pipeline of potential valuable and licensable drugs is being built and the company is targeting first clinical trials in 2019 • A sum-of-the-parts model now suggests an equity value four times the current market capitalisation
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to established antibody technology which dominates the drug industry despite itslimitations. Avacta has made considerable progress towards its strategic goal to have a first-in-man Affimer therapeutic by the end of 2019. Meanwhile, recognition that Affimers can hit specific targets in areas where antibodies have failed, has resulted in the signing of two distinct agreements with US-based biotechs to provide highly specific Affimers for in-house research programmes.
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to established antibody technology which dominates the drug industry despite its limitations. Moderna was the first to enter into an agreement with Avacta to use the Affimer technology, in tandem with Moderna’s mRNA drug delivery platform. Moderna has just disclosed Phase I trial data for its mRNA technology which is the first public evidence that it works, which meaningfully de-risks the partnership plans to deliver Affimer therapeutics using mRNA
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to established antibody technology which dominates the drug industry despite its limitations. Avacta is continuing progress towards its strategic goal of having a first-in-man trials of Affimer therapeutics by the end of 2019. In two years, management has hit several key milestones, moving Affimers from being an ‘interesting concept’ to one of ‘real opportunity’ and de-risking the technology as the next platform of biopharmaceutical drugs.
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to established antibody technology which dominates the drug industry despite its limitations. During 2016, Avacta made considerable progress towards its strategic goal to have a first-in-man Affimer therapeutic by the end of 2019. In two years, management has hit several key milestones, moving Affimers from being an ‘interesting concept’ to one of ‘real opportunity’ and de-risking the technology as the next platform of biopharmaceutical drugs.
Milestone Immunogenicity Data leave Avacta on track to move their first therapeutic Affimer into the clinic by 2019.
Avacta reported interim results slightly ahead of expectations. Higher-than-expected net cash (£16.1m) and lower capitalised development costs point to a longer than expected cash runway, extending well into FY 2019 and well past potentially significant value inflection points that should culminate in its first Affimer therapeutic entering the clinic in 2019. The keenly awaited immunogenicity data was even better than expected, de-risking the Affimer platform and marking a significant data point that will be of substantial interest to potential partners. Our target price remains 200p.
Avacta* (AVCT): Cash burn lower, immunogencity low – both meaningful positives (CORP) | Iofina* (IOF): Production update (CORP) | Renew (RNWH): High ROCE and strong cash flow (BUY) | Minds + Machines* (MMX): .vip going strong (CORP)
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Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to established antibody technology which dominates the drug industry despite its limitations. During 2016, Avacta made considerable progress towards its strategic goal to have a first-in-man Affimer therapeutic by the end of 2019. During coming weeks the company is expected to report on the next step in the pre-clinical development process: whether or not Affimer scaffolds are immunogenic. A positive outcome would be a low immune response rate.
The upcoming release of in vitro immunogenicity data for the base Affimer scaffold, expected in the next month or so, is another key technical preclinical milestone en route for Avacta to taking its first Affimer construct into Phase I studies in 2019. Not only will it add to the requisite data pack to enable the company to have relevant licensing/partnering discussions with big pharma/biopharma but, coupled with the September release of positive animal data, it will provide further evidence as to whether Affimers are a suitable therapeutic platform. We make no change to our forecasts or 200p target price, which assumes an acceptable immunogenicity profile.
Avacta* (AVCT): What to look for in upcoming immunogenicity study? (CORP) | Byotrol* (BYOT): Acquisition to gain NHS traction (CORP) | H&T Group* (HAT): Results ahead (BUY)
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Avacta, a UK-based biotechnology company, has developed an innovative protein-scaffold platform, with potential applications in the life sciences research, diagnostic and therapeutic markets.
Avacta issued a pre-close trading update to accompany its AGM today, for the half year ending 31 January 2017. The company indicated that its custom Affimer order book has grown by 70% and that it has over 22 Affimer evaluations ongoing with global pharma, biotech, research tools companies and diagnostics companies. These metrics clearly demonstrate the progress made over the past 12 months which – together with the anticipated newsflow over the next quarter – increases, in our view, the likelihood that Avacta will be able to conclude a value-enhancing licence deal in 2017. We make no change to forecasts or 200p target price.
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a radical alternative to established antibody technology which dominates the drug industry despite its limitations. During 2016, Avacta has made considerable progress towards its strategic goal to have a first-in-man Affimer therapeutic by the end of 2019. Progress has been made in all three of its areas of therapeutic interest, with the announcement that Avacta has tied up with the Memorial Sloan Kettering Cancer Center to investigate Affimers in CAR-T cell immunotherapies.
Avacta announced that it has entered a research collaboration with Memorial Sloan Kettering Cancer Center (MSK) to evaluate the use of Avacta’s Affimer technology in developing CAR-T cell-based immuno-therapies, to be led by Dr Renier Brentjens, Director of Cellular Oncology at MSK, who incidentally was a co-founder of Juno Therapeutics, one of the leading CAR-T plays (NASDAQ: JUNO). His collaboration with Avacta should be seen as a significant endorsement, in our opinion. This partnership fulfils another one of Avacta’s near-term strategic therapeutic milestones and follows the July collaboration with Glythera to develop Affimer Drug Conjugates. We make no change to our target price of 200p, given the preclinical and commercial milestones expected over the next year.
Avacta * (AVCT): Preclinical data presented at PEGS Europe (CORP)| Tailings: Analyst interview |Gemfields* (GEM): Q1 operating results (CORP)
Avacta is the proprietary owner of Affimer technology for the development of biotherapeutics, diagnostic tests and research reagents. Affimers represent a revolutionary alternative to the established antibody technology which dominates the drug industry despite its limitations. Avacta has made considerable progress towards its strategic goal to have a first-in-man Affimer therapeutic by the end of 2019. Meanwhile, its reagent business is continuing to deliver on three initial areas of strategic focus. There will be greater recognition of the long-term potential of Affimers in the enterprise value as Avacta signs more licensing/collaboration deals.
Avacta is a preclinical stage biopharmaceutical company focused on the development of a potentially best-in-class immuno-oncology platform with the aim of being ready to enter first-in-man studies in 2019. The Affimer platform addresses many of the practical and commercial limitations of antibody combinations and can potentially be used in a range of life science applications; as a therapeutic, as a research reagent, in a diagnostic test or for separating proteins. We initiate coverage with a 12-month target price of 200p, implying an EV of c£125m/$150m, which we expect to be reached as the company meets its key identified technical preclinical and commercial milestones.
Avacta is a life science company providing high quality and highly specific tools to the biopharmaceutical industry to help in the diagnosis and treatment of humans and animals. The group’s Affimer technology is a revolutionary alternative to the established antibody technology which dominates the drug industry despite its limitations. Following the Placing early in the current fiscal year to fund an in-house therapeutic Affimer programme, this has added a significant new element to the R&D spend which means that it is necessary for the company to change the method by which certain R&D investment is accounted for.
Avacta is a life science company providing high quality and highly specific tools to the biopharmaceutical industry to help in the diagnosis and treatment of humans and animals. The group’s Affimer technology is a revolutionary alternative to the established antibody technology which dominates the drug industry despite its limitations. While Avacta has made considerable progress towards developing its own bio-therapeutics in 2016, two announcements recently have expanded its Affimer technology into new areas with large commercial potential. There remains a clear mismatch between the current EV and the long-term potential of Affimers.
Avacta is a life science company providing high quality and highly specific tools to the biopharmaceutical industry to help in the diagnosis and treatment of humans and animals. The group’s Affimer technology is a revolutionary alternative to the established antibody technology which dominates the drug industry despite its limitations. During 2015 Avacta focused all activities on the commercialisation of Affimers initially via a bespoke service and an on-line catalogue, with a longer-term view to develop its own bio-therapeutics for out-licensing. There is a clear mismatch between the EV of ca.£50m and the long-term potential of Affimers.
Avacta is a life science company providing high quality and highly specific tools to the biopharmaceutical industry to help in the diagnosis and treatment of humans and animals. The group’s Affimer technology is a revolutionary alternative to the established technology, antibodies, which dominates the drug industry despite its limitations. During 2015 Avacta focused all activities on the commercialisation of Affimers initially via a bespoke service and an on-line catalogue, with a longer-term view to develop its own bio-therapeutics for out-licensing. There is a clear mismatch between the EV of ca.£50m and the long-term potential of Affimers.
Avacta has announced a £22m gross placing of up to 1.76bn new shares to invest in the development of therapeutic applications of its Affimer platform. The company has demonstrated that Affimers have many characteristics required of a biotherapeutic platform, in addition to ongoing exploitation as research reagents. The proceeds are earmarked to accelerate development of the most promising Affimer candidates and to rehouse the growing therapeutics team. Our valuation and FY16 financial forecasts are under review pending confirmation of the placing in August.
