18 May 2015 Avacta Group plc ("Avacta" or "the Group")
Therapeutic licensing partnership with Moderna Therapeutics, Inc.
Avacta Group plc (AIM: AVCT), the global provider of proprietary diagnostic tools, consumables and reagents for life sciences, announces that Avacta Life Sciences has entered into a collaboration, licensing and option agreement with Moderna Therapeutics, Inc. ('Moderna').
Under the terms of the agreement, Moderna will make an upfront payment of $500,000 which provides Moderna exclusive access to Affimers against certain targets which may be extended to include additional targets by a further payment. Moderna will also make certain payments to Avacta for research services to deliver pre-clinical development milestones.
Moderna has the option to enter into exclusive license agreements for selected therapeutic Affimer candidates for clinical development and in each case Avacta will be entitled to milestone payments. The total value of these payments could reach several tens of millions of dollars. Avacta is also entitled to royalties in connection with future product sales.
Alastair Smith, Avacta Group Chief Executive commented: "This agreement represents a significant opportunity for Avacta with tangible, near term revenues from upfront payments and research services, with additional milestone payments and royalties on future sales of therapeutics. It is a transformational deal for Avacta and Affimers and I am absolutely delighted to be working with Moderna, a leader in this exciting new field of mRNA therapeutics.
"The collaboration with Moderna is an important validation of the Affimer technology, highlighting the potential for Affimers to become a real alternative to antibodies. I have no doubt that this early adoption of Affimers in the therapeutic field will act as a catalyst for others and it represents a step change in the valuation of the Affimer technology."
Can't make up my mind about last year. Good news is that Affirmers seem to be getting repeat business and sales are growing strongly bearing in mind they were only introduced 3rd quarter last year and its new technology.
Bad news no mention of sensipod and the loss of a big contract.
Agree with last comment this year will show whether or not Affirmers will take off.
Not a great set of numbers, disappointed me slighly. I'm encouraged by the focus the company is taking but it needs to feed through to the core numbers of increased sales/revenues and hence profit. This will be a big year for Avacta, potentially defining
For any other investors here who have northern connections, might be worth taking a look at a company called Xeros. Fascinating offshoot from Leeds University, a brilliant product and great business plan in terms of patenting everything and licensing the product. It's really motoring as a share but it's only early days in its journey and has a long way to go in terms of growth yet. Very exciting.
Here's hoping Avacta could follow a similar path in the future!
I agree a 2 yr breakeven is disappointing if it's true, but this is just one persons expectation. And moreover, it all depends on how much revenue grows. R&D is expensive in this sector but necessary to make the gains required. As long as revenues increase dramatically and there's a steady stream of new products which build up a strong pipeline, we'll be fine. Remember, companies like Amazon have barely made a profit yet their share price is massive! People will buy into potential
Malcolm Stacey’s Easter share tips No 3 - Avacta By Malcolm Stacey | Monday 6 April 2015
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
A year ago, I had three beautiful cats. Now I have only one. In between, came some agonising trips to the vets to try and save two lives. It was not possible in the end, though of course my family did everything they could to postpone the inevitable.
Our own vet has comparatively low charges. But I have heard that other veterinary fees are rising hugely. And of course, being British, we will always pay happily what it takes to save our pets.
One firm which is trying to lower treatment costs for both animals and humans is Avacta (AVCT). It's an Aim-listed company which was launched from Leeds University 11 years ago. It develops treatments and diagnostic tools.
One of its main tasks is to develop drugs called Affirmers. These are not villains in Doctor Who, but a substitute for anti-bodies, which or course, fight off and neutralise germs. Affirmers can also be used to help discover new treatments and diagnostics. So very useful things.
The company is also launching a new range of diagnostic tests for animals. This is also exciting, because, as we discovered with our cats, it’s often hard for vets to find out what causes illness. Animals can't explain symptoms.
While it's true Avacta's share price has halved in the last five years, there has been a recovery over the last 3 months.
The antibody research market is worth £1 billion dollars and if Avacta can make inroads into it with its alternative Affirmers, it's likely that the share price will motor up. You might want to be on board when it happens.
Health research is notoriously costly and doesn't always come off. So it's no surprise that Avacta are not making a profit now. But I reckon they will break even in 2 years and, after that, will reap the fruits of their particularly useful research and development. Our new cats will be delighted.
To Read Malcom's first tip for Easter click HERE
To read Malcolm's second share tip for Easter click HERE
Malcolm Stacey has been writing about shares for more than 20 years. His first book "The Armchair Tycoon" was first published in 1998 but a revised 2014 e-version is now available. To obtain a FREE copy fill in the form HERE
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