Avacta Group Share News (AVCT)

(Alliance News) - Avacta Group PLC on Friday said it has agreed to sell its UK-based and largest diagnostics unit, Launch Diagnostics Holdings Ltd, and reported "promising" early efficacy data in the treatment of salivary gland cancers.

The Wetherby, West Yorkshire-based life sciences company said it has agreed to sell Launch Diagnostics for GBP12.9 million in cash to Palex Healthcare Group SLU subsidiary, Duomed Belgium NV.

Palex Healthcare is a Barcelona-based distributor of medical technology and equipment solutions. Duomed Belgium is an Aartselaar-based medical technology distribution company.

Avacta expects the sale to close by the end of next month, with the proceeds to be utilised to further its preCision platform.

It said the asset disposal represents an important step towards Avacta becoming a pure-play biotechnology company, adding that the divestment extends its cash runway into the first quarter of 2026.

On Friday, Avacta also reported "promising" early efficacy and safety data for its lead program,

AVA6000, which it said has completed the phase 1a dose escalation with "encouraging" progression free survival data in patients with salivary gland cancers.

AVA6000 is the first clinical stage asset which is a preCision-enabled form of chemotherapy drug doxorubicin, said Avacta.

Avacta's preCision platform works to optimise dosing in the tumour environment and improve outcomes for cancer patients.

It said that among the patients in the dose escalation portion, 11 with salivary gland cancers were treated with AVA6000 at or above 250 milligrams per square meter.

One patient experienced a confirmed partial response as best response, four patients experienced minor responses and only one had disease progression "for a disease control rate of 91%".

Avacta said these data compare "very favourably" to published PFS reports with conventional anti-cancer therapy.

It anticipates providing a further update on the phase 1a dose escalation data in the second quarter of this year, with the full phase 1a data to be presented in the second half of 2025.

Avacta shares rose 3.1% to 37.37 pence on Friday afternoon in London.

Avacta Chief Executive Christina Coughlin commented: "Our development of AVA6000 is proceeding according to plans and today's new data demonstrate the durability of the responses we have observed in the SGC indication. We believe that AVA6000 has an important role to play in the clinic, given our preliminary efficacy data and the large commercial market size of conventional doxorubicin"

By Christopher Ward, Alliance News reporter

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