Avacta Group

LN: AVCT

£31.1m market cap

17.7p last close

Avacta is focused on the development of its Affimer technology for use in therapeutic and diagnostic/reagent applications. Assets include AVA004 (PD-L1), AVA021 (PD-L1/LAG-3) and AVA004/100 (PD-L1/I-DASH).

Investment summary

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.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 2.7 N/A (7.9) (9.8) N/A N/A
2018A 2.8 N/A (10.4) (13.5) N/A N/A
2019E 4.5 N/A (11.1) (8.1) N/A N/A
2020E 4.5 N/A (12.7) (9.3) N/A N/A
Industry outlook

The rise of biosimilar drugs, in Europe at least, has highlighted the need for new biological drugs by companies that previously developed protein drugs like monoclonal antibodies. These potential partners, as well as those which already have a branded antibody product, would be keen adopters of the Affimer technology that gives them second-generation bispecifics and DACs.

Last updated on 11/11/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (£m) 5.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.0) (27.8) (26.6)
Relative* (4.3) (29.2) (29.1)
52-week high/low 47.0p/15.2p
*% relative to local index
Key management
Alastair Smith CEO
Tony Gardiner CFO