logo-loader

City broker expecting big things from Avacta

Published: 10:45 01 Nov 2016 GMT

a cancer cell under the microscope
Checkpoint inhibitors are the hot topic in cancer treatment right now

City broker finnCap reckons cancer treatment specialist Avacta Group PLC (LON:AVCT) can more than double its share price in the coming year if it continues to progress at its current rate.

Avacta has been focusing on its Affimer checkpoint inhibitors – the current hot topic in the world of cancer treatment – in recent months, which has yielded some impressive, albeit early, data.

A pharmacokinetics study showed that the Affimer molecules can remain in the bloodstream long enough to have a positive effect and re also well tolerated.

An efficacy study involving mice also showed that the molecule significantly reduced tumour growth in the animal.

“These data demonstrate that Affimers possess the right pharmacological properties requires for a drug to potentially be an effective treatment,” said finnCap in a note today.

“Whilst we accept that these are still early animal data, they do significantly de-risk the Affimer technology as a potential therapeutic platform.”

It makes no change to its 200p target price and expects this to be more than achievable if Avacta meets its stated preclinical milestones over the next 12 months.

Shares currently sit at 91p, which means finnCap sees significant headroom for growth – 120% to be accurate.

Checkpoint inhibitors – all the rage but what exactly are they?

Back in the ‘90s, scientists discovered that human cells carry certain proteins on their surface that allow the immune system to recognise it as a ‘good’ cell and leave it alone.

Shortly after, it was discovered that many cancer cells wear one of those same proteins – called PD-L1 – allowing them to deceive the immune system and evade any attacks.

Avacta – along with a host of other pharmaceutical firms – has been focusing on creating ‘checkpoint inhibitors’ that block this PD-L1 protein, which, in theory, allow the immune system to “see” the cancer cells and launch an attack against them.

The science behind them has yielded some impressive data in recent years and early stage clinical trials are showing promise as well, although it is worth noting that the technology is still in its relative infancy.

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

25 minutes ago