Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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This new sentence added at the end of the Investment Opportunity page very recently "anticipates further commercial partnerships and license arrangements " also recall CEO saying intention was to keep AVA6000 inhouse through the clinic .
"The Group also anticipates further commercial partnerships and license arrangements that will allow its technology platforms to be further developed leading to long term royalty based revenue in both the therapeutics and other markets."
https://avacta.com/investors/key-information/
Don't be fearful of dilution. Avacta are publicly listed precisely in order to raise funds. Outlicencing an early stage molecule is a form of dilution in that the company are forgoing future revenue for cash now, so issuing some more equity by retaining the assets is not an unmitigated disaster. The road to an approved drug is long and costly, AVA6000 will probably not need a full scale P3 trail, but there will be many many trials needed to establish the dose, efficacy, and co-treatments for the drug in the many different tumor types it can affect. Avacta (or whoever acquires them) will need a big cash injection from somewhere to take this through to commercialisation.
MrR and BITL - I think you need to update your research about the commercial model. Yes Avacta did once say their plan was to license out AVA6000 in return for a royalty payment, but recently they’ve said the plan is to license out other drugs in the pipeline (commonly assumed to initially mean AVA3996 to Takeda, but of course nothing’s sure until it happens) and retain 100% control of AVA6000. That is what any acquirer would be getting. This notional 10-15% royalty as regards AVA6000 is not relevant anymore.
That said, they would need more capital to take it past phase 1b alone. There is a good chance that will come from licensing, or that the problem will be taken off their hands, but I’d forgive anyone for cautiously factoring in potential dilution down the road, albeit at a higher price than today, if it works.
BITL, if you need to pay the bills, I know someone with horrific dogsh.t covered lumps of coal for teeth that’ll pay you up to a whopping 20p a post if you’re interested.
Meanwhile, top tip for mindless gormless rampers, show some ambition. No one is impressed by £50 when we all know the true potential has been calculated in detail to be £200 exc Chin-ah.
Course you will
Loving your standard reply rxdav think I'll tag along with the old favourite "twat"
“ staying strong and holding long” won’t impact this SP one iota.
Fear mongering? Arse twitching? You blind ramping, actual fck-wit, know nothing, useless, pointless, clueless, tit. You know nothing of Avacta. You’re a cut and pasting ******. And I hope we suffer such a dip before our rise that the crushing chest pains you have to deal with cause you to collapse onto your keyboard and hit the sell button, and when you come to, we’ve hit the big time and you’ve missed out. Silly little twat.
Course it is.
We are in the cusp of something great.
I have no time for fear mongering and arse twitching posters.
The way to make money here is by staying strong and holding long
Course he is.
Until it is you are blocked
Timster, don’t you know me and Bein are one and the same.
But I agree we could rocket to ridiculous levels in short other. We could get there over time. Or we could simply not if all goes wrong. What this board doesn’t need to be is a rampfest. And thanks BITL. I didn’t need correcting.
All in all we have a lot to look forward to. So let’s look forward to it. It isn’t here…. Yet.
Demolitions friend of a friend says massive news Monday no reason to doubt him.....
Short still open Timster. I have to make money somehow! :). Although, my rampier add to the previous post passed yours in the ether.
I would add that if data from the trial contains extraordinary biopsy support, it’ll pave the way to healthy valuations quicker than we think. £20 won’t necessarily be 5 years away. A lot to go right, and Avacta to become more mature. They’re still playing at it in terms of communication and investor relations.
Bloody derampers, close the short BITL and Mr R
They own 100% of a drug that is priced at circa 10-15% royalty. A drug we don’t yet know works. Mr R doesn’t need corrected.
50% share on av6000 or nothing.
That’s what they can say to whoever the suitors maybe
Bargaining power is a beautiful thing
Mr. R...it all depends who their new friends are in and around White City...they say they want to keep it for themselves and they of course can and these days it's extremely easy to strike a contract manufacturing. However there is also the possibility of an AA with a Pharma whereby Avacta keeps the IP, does the ongoing research, trials and maintains trademarkets etc and the Pharma does all the sales and marketing/manufacturing (or contracts out). Avacta would gets a profit share or royalty plus possible performance payments and the Pharma gets first pick of future research/trial outcomes etc.
Mr ripley. Don’t be pessimistic.
You will be surprised at what will happen here short term next few months.
Not sure your assumptions are correct Mr Ripley. Forget the 10% royalty, at the moment Avacta own it 100%, and that will be what any interested party will be after. The current market is priced for a generic of a long standing drug, manufactured by many separate companies. A major owning the prodox IP will be able to consolidate this, increase the price AND expand the usage. The prodox market could be a lot bigger than you estimate. The IP has a long time to run, value this at 5x peak sales for a contested buyout and are you are way north of a few quid a share. That is without the platform, or any of the other stuff in the cupboard. Will this be realised after 1a, probably not, but we are not talking years and years either before someone takes it on.
Right. First we don’t know if AVA6000 works. We just don’t. If it does then how well? If it’s we’ll enough to take the Dox market then that’s a what? 1.5-3bn market and growing. 10% royalty of that market is 150-300m in revenue P.A, though it could grow as Pro Dox increases its own market size. There would then need to be the assumption that the whole platform would be a success. A heft PE ratio applied and a massive valuation on the rest of the company. Yes there’s a potential huge chunk of the 300bn dollar oncology market to grab at but a lot has to go right and this won’t be hitting 20-30 quid a share for a very long time. £20 is around 5.4bn. A lot has to go very well and holders would need to be extremely patient/Avacta would need to stay independent for years to hit the valuations of the likes of Roche or thermo. It’s all pie in the sky ramping until a lot goes well and many years pass us by. I’m not saying it’ll never happen but talk of imminently when we’ve not even had DE2 or any data from our first clinical trials is complete *******s
Silly hype yet again.stick with the facts.
Demolition where the hell have you got those SPs from?
Yes and rob cooper would be well and truly forgiven if that the case