Avacta - interim results confirm progress
Avacta (LON:AVACT) reported revenues of £1.0mln, down from £1.5mln the year before, largely due to the absence of research services revenues for FTEs working on the Moderna collaboration now that assets have been transferred into their development pipeline. We expect revenues from the LG Chem deal to offset this during the remainder of 2019.
The company reported a cash outflow from operations of £2.9mln and ended the period with £11.8mln net cash following the £11.6mln fund-raise in August. We believe that Avacta can comfortably fund ongoing development programmes into 2020.
The company will be moving its year-end from July to December, meaning that the current year will be reported on the basis of a
17-month period (see table below).
The major value driver for Avacta, in our view, is the development of its proprietary Affimer technology for therapeutics, particularly in the immune-oncology (I-O) space. I-O therapeutics is a market of over US$100bn. On p2 we provide a reminder of valuations that can be realised for a pre-clinical I-O technology.
Quick facts: Avacta Group PLC
Price: 21.625 GBX
Market Cap: £38.07 m
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