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  • Writer's pictureMark Watson-Mitchell

Avacta – research house sees peptide-drug company reporting 75% deeper loss this year, but it values shares at over four times current price

Avacta (LON:AVCT), the £148m-valued life sciences company targeting cancer treatments and diagnostics, is expected to see an adjusted pre-tax loss of some £41.3m (£23.6m), on the back of just a small increase in revenues to £23.9m (£23.2m) for the year to end December this year.


The company has two divisions: a clinical stage oncology biotech division harnessing proprietary therapeutic platforms to develop novel, highly targeted cancer drugs; and a diagnostics division focused on supporting healthcare professionals.


Avacta owns two novel technology platforms: pre|CISION and Affimer,

pre|CISION improves potency and reduces toxicity of cancer drugs by only activating them inside the tumour.


Affimer proteins are antibody mimetics being developed as diagnostic reagents and oncology therapeutics.


It is claimed that successful clinical trials would be transformative for Avacta. 


Research Experts Give 188p A Share Value


With expertise in the biotech, medtech, specialty pharma and consumer health sectors, the research team at Trinity Delta covers the healthcare and life sciences sectors.


Its report on Avacta, published today, values the company using a sum-of-the-parts, which includes a risk-adjusted net present value (rNPV) of the lead clinical asset AVA6000, an aggregate rNPV for the remainder of the proprietary platforms (pre|CISION and Affimer), and a DCF valuation for the Diagnostics business, which are netted against operating costs.


It has increased its valuation to £675m for the company, worth some 188p a share which is more than four times the current share price of 41p.

 

The company



will be holding its AGM on Wednesday 26th June in one of the City of London’s livery company venues – the Glaziers Hall.

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