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.
