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
Market Cap: £25.85 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
In exchange for publishing services rendered by the Company on behalf of Avacta Group PLC named herein, including the promotion by the Company of Avacta Group PLC in any Content on the Site, the Company receives from...FOR OUR FULL DISCLAIMER CLICK HERE
LEGAL NOTICE – IMPORTANT – PLEASE READ:
Proactive Research is a trading name of Proactive Investors Limited which is regulated and authorised by the Financial Conduct Authority (FCA) under firm registration...FOR OUR FULL DISCLAIMER CLICK HERE