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Dr Smith reported there are several undisclosed contracts and projects with other parties. I assume this will mean there may never be any news flow for these except for revenues flowing into the bank.

The US markets are down about 2 percent today, with investors fearful of increased rates of new covid-19 infections in the US. Yesterday new infections there reached about the third highest yet at 36,000.

One stock that was up today? Vir Biotechnology which is developing a covid-19 vaccine jumped 18.8 percent to $47.86 compared with its price of $34.18 at the end of May. That’s up 40 percent so far this month. The hope of a successful vaccine gives the company a market cap of $5.6 billion. Avacta’s market cap is currently $0.4 billion.

Quite what was going on in London today with Avacta? The company released an upbeat assessment of its rapid covid-19 test strip and another bunch of sellers were out in force. The chaotic financial management of the group is part of the problem. But with some of the chunky buys today there were signs the selling was just about done and that there are serious new investors who have watched the presentations, read the annual report and Myles McNulty’s magisterial set of updates and understand Avacta’s potential.

Let’s hope the board takes steps to strengthen the financial management, seek a listing on a senior exchange in New York or London and get the word out to investment researchers, investment banks, more institutional investors and the media. This nonsense has gone on long enough.

ADC is Swiss but quoted in New York.

Many US biotech companies have seen their share prices increase in June. Of the ones I follow:
ADC Therapeutics 36.9 to 43.3
Adverum Biotechnologies 20.63 to 25.64
Vir Biotechnology 34.18 to 40.29

Thanks Canute. But I don’t think I’ve come across Richard Hughes. My concern about the financial management is not just about the past. It is that Avacta needs excellent financial management in the future.

Good suggestion TallPaul. I have written to Dr Smith.

LiveLong: Good points. I hope the board got the message and don’t need it repeated.

Dr Smith clearly has the opportunity to rapidly create a major force in biotech. But the group’s market cap at the moment indicates that shareholders have little confidence it will happen. Getting all parts of the group to execute effectively will increase the chances that it will.

The failure to get shareholders to pass resolution 9 was a welcome shot across the bows of the board by the shareholders.

The board should learn the lesson, sharpen up its financial management and respect the rights of all their existing shareholders.

Dr Alastair Smith has done a great job of developing the two key pharma platforms and is in a position to create an immensely successful company. However, he needs to ensure that the non-pharma support areas in Avacta match the pace.

The chaotic financial management this month have shown up glaring weaknesses in the financial management that were already apparent and should now be addressed.

During the course of 2019 most of the reported institutional shareholders sold out, some presumably for about 20p a share and the number of shares held by institutions halved.

Then this month we saw the board trying to increase the share count by 20%, issuing all the shares authorised at the previous AGM plus some more presumably on a conditional basis that were not authorised at all. Approval by shareholders will be decided at the shareholder meeting later this week and may also be refused.

Existing shareholders were not offered shares through a rights issue and their percentage holdings were forcibly reduced. The board then asked AIM brokers to conduct the share sale. As the clients of the brokers learned of the sale the share price which had been over £2 the previous week collapsed and the shares were offered to the brokers’ clients for only £1.20.

Despite the vast issue of new shares we are still only aware of one new institutional shareholder and so it is likely that the institutional shareholder base has not been much improved.

It is the responsibility of the finance department to cultivate a stable institutional shareholder base and the board should also ensure this failure is rectified in the future.

Avacta should also seek to obtain a quote on a more senior stock exchange either in London or New York so that Avacta can remove the baggage of being an AIM stock and leave AIM to its collection of underperforming lifestyle companies.

And instead of relying on its current collection of AIM brokers it should recognise it is now time to work with reputable investment banks who know how to raise funds responsibly.

There was a statement and business update before the last AGM on 21st January 2019.

I think it is probable covid-19 becomes endemic. China, Taiwan and New Zealand have all but eradicated it but other countries have made half-hearted efforts or worse.

Strategic also means related to the organization’s strategy. This would apply if the Bill and Melinda Gates Foundation invested with a view to supporting the neutralising affimer. Indeed, it would be in line with investments They have made before which could assist in developing key investments in the covid-19 space.

June 29th

https://www.thetimes.co.uk/article/pretty-little-deal-brings-the-boohoo-clan-closer-htdfxftd0?shareToken=59d11409c72fc16b9cef62a209aa87b3

Sanofi does look like a strong candidate for a takeover offer. It will have the cash resources for an offer and it will have the resources to develop the large number of opportunities provided by the two platforms, the affimer platform and what it now calls the pre|CISION chemotherapy platform - and not have to spend time looking for partners to develop some of them. Sanofi would also be able to offer AS and the existing senior management team the opportunity to manage this more rapid development of new therapies for the benefit of patients.

The Regeneron agreement reworked the previous joint venture agreement. In particular, it allows Sanofi to develop new immuno-oncology drugs independently. So it looks like Sanofi is following through rapidly this year on a strategy for immuno-oncology and will have the funds to finance it.

In January Sanofi paid Regeneron $462 million to end its immonooncology pact.
https://www.fiercebiotech.com/biotech/sanofi-pays-regeneron-462m-to-exit-immuno-oncology-r-d-pact

In April AS commented on Sanofi’s acquisition of Ablynx highlighted the attractions of Avacta.
https://www.businessweekly.co.uk/news/local-sharewatch/5bn-sanofi-acquisition-highlights-avacta-potential-says-ceo

This week Sanofi unveiled plans to raise $13 billion by reducing its Regeneron

https://www.fiercepharma.com/pharma/sanofi-sells-13b-holding-regeneron-a-rare-disease-buyout-next

Other reports speculate on which sectors Sanofi might be interested in expanding with acquisitions, some suggesting immunology and oncology.

https://www.biospace.com/article/sanofi-to-sell-bulk-of-stake-in-regeneron-to-finance-its-new-strategic-focus/

It could be that the spike protein presents a particularly easy target. But maybe you are right. Of great importance is that the affimer platform is a platform and affimers can be developed for a large number of purposes. And pre|CISION is also a platform as it can be used to develop pro versions of other legacy drugs making them more effective.

Tax losses booked in the same tax year can be deducted from the gains.

If and when the test strips receive FDA approval the publicity is unlikely to mention Avacta.

This pattern of the real technical advances not being widely recognised could continue for some time, leaving the share price not reflecting the underlying value.

I assume they will both have to do testing to show the test strip works and then request an FDA approval.

Avacta consolidated its shares in 2016.
https://www.investegate.co.uk/avacta-group-plc/rns/share-consolidation/201601260805029470M/
One hundred old shares became one new share. I hope that the shareholders with a large number of Avacta shares are not relying on share certificates issued before the consolidation.

Agreed Wiggly. This is one of the most compelling investment opportunities I have ever seen. The UK now has an enfeebled financial media which will do little to bring knowledge of the company to wider acclaim. The result is likely to be an acquisition at way below value but at least well above the current share price.

The Times includes Avacta in the market report: On Aim, Avacta zipped 31½p, or 29.6 per cent, higher to 138p after it told investors that its technology could be used to treat coronavirus patients. The company had been developing its Affimer reagents for use in a coronavirus saliva test but scientists now reckon that the Affimers can also bind to the virus and stop it infecting human cells. “This is a very exciting development,” Alastair Smith, chief executive, said.