The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
A must read…… https://aimchaos.com/2021/08/18/avacta-group-summary-of-revised-investment-thesis-18-08-2021/
Investment Proposition
Avacta is in a unique position, having two proprietary platforms to develop novel immunotherapies and safer forms of chemotherapy, to address the well known lack of response of most patients to standard immunotherapies.
Avacta has significantly de-risked the Affimer® platform to date and aims to demonstrate the safety and tolerability of Affimer® therapeutics in humans as soon as possible with its PD-L1 inhibitor programme. This PD-L1 asset also forms the basis of novel bispecifics and tumour targeted drug conjugates (TMACs).
Avacta took its first pre|CISIONTM targeted chemotherapy, AVA6000 pro-Doxorubicin, into the clinic in summer 2021.
Doxorubicin is a $1bn generic drug and a standard of care for many soft tissue sarcomas despite severe cardiotoxicity issues that limits its effectiveness. In the case of Avacta’s improved version of this drug, AVA6000 pro-Doxorubicin that incorporates the pre|CISIONTM tumour targeting technology, a dramatic improvement in safety has been observed in pre-clinical animal models. If a similar reduction in cardiotoxicity is seen in humans in the phase I clinical trial of AVA6000, then there is the potential for a major license deal that could generate a transformational, non-dilutive, upfront payment of tens of millions of dollars. This funding would support all Avacta’s other programmes in future. The pre|CISIONTM technology to improve the safety of a large number of other established chemotherapies and generate similar licensing opportunities. For this reason, the Company is prioritising this programme.
The Group also benefits from revenue generating businesses in the human and veterinary diagnostics market.
“In this note, we have set out our rationale as to why we believe that there is a genuine possibility of Avacta becoming a multi-billion-pound company within the next 12 months. The reason for this is straightforward: the Company owns (or has the exclusive license for) four platform technologies – one diagnostic-focussed, three therapeutic-focussed – that between them could ultimately generate first-in-class products that target global markets worth several hundred billion dollars per annum“
A must read….htTps://aimchaos.com/2021/08/18/avacta-group-summary-of-revised-investment-thesis-18-08-2021/
I think the more pertinent question is, why did #AVCT shoot down from 290p to 100p, AFTER the CEO said @avacta was onboarding various manufacturing partners that could scale up to 35 million tests per month - with a gross margin of €1-2 per test?
Answer: AIM is irrational.