That's my reading of it too. Just like with GeneDrive's recent placing, they needed funds to ramp up quickly their beads for their high volume PCR test array that Cytiva will manufacture. In Avacta's case, they produce (and build up a stockpile) of Affimer reagents, ready to supply to Cytiva so they can scale up production of the rapid LFD strips.
Well spotted. My thoughts too, after reading Part 2 of Myles' papers in its entirety just now. Very clearly, avct will reach yet another value inflection point when the company can demonstrate through a successful Phase 1 trial that the Affimer platform is safe to use in humans, something that is yet to be done. A partnership deal with a deep pocketed pharma would speed up that process, maybe by a year, as well as giving kudos to Avacta and more market recognition of the worth of the platform.
Good evening ShaheenWWFC.
Thinking some more about your cryptic remarks, could you please be more specific about the time frame in the past when these negative comments/opinions about Avacta were made? And maybe there was an element of rivalry between two competing small biotech firms at the time? Or could it be that Avacta used to run a very tight ship during the very lean years, 2013-2017 in particular, before they had collaboration deals with Moderna and the Korean group, which may have led to some corners being cut on procedures etc? Just trying to imagine what you are suggesting. But also trying to believe that Avacta has strengthened every aspect of their workplace in recent months, especially, and with these new funds will step up to an even higher level of proficiency, and reputable science. And so they should, if they aspire to becoming recognised as a top-notch British biotech firm. ATB.
I'm not so bothered about drilling activity this year, but that EL is key. Aren't Mongolian civil servants working at home, given covid-19 social distancing, with online comms, or is that too much to expect of them? And if they are not up to the job because of a lack of necessary digital infrastructure, will the Mongolian authorities grant PM a respite period of , say, 6 months, to the year end? PM needs some answers pretty darn quickly, I would think.
I did just listen to Mike Bucks in his January 2020 interview.
What comes out loud and clearly is the need to get that Exploitation License before the July elections. But he also said he was very confident that it would come by end Q1 2020. It didn't, and near it's squeaky bum time for that all important EL. He mentioned wanting to develop Heron 1 to bring on stream this year, and begin drilling Heron 2, 3,4, in the drilling season window June to November. So valuable time is being lost whilst PM waits.
So, either today's explosive sp is a leaky ship, or a wishful thinking false dawn as a few posters are eagle eyed watching and waiting for that elusive EL to kickstart an active development campaign. We shall soon see which it is.
One of life's ironies is that, in the face of the world's worst pandemic since the Spanish Flu of 1918, a tiny Yorkshire biotech company which was trading on a market valuation of £35mn (170mn shs o/s) in February, has just been able to raise another £45mn for future research, development and commercialisation of its portfolio. And that, with progressively higher prices for its 2 placings since February. Sitting back in February, with the oncology pre-clinical drug targets identified and a medium term plan to progress them, who could have known that Avacta's ability to speed up their clinical work would be transformed by this left field exogenous event. There's no way Avacta could have gathered anywhere near this capital injection without it.
So I am pleased for Avacta, its management and research team, but this is tinged with not a little sadness at the human cost in life that accompanied their good fortune and work in progress. Such is life, I guess.
I sincerely hope that Avacta uses the funds wisely and successfully. The path to fame and fortune has barely begun yet.
Guys, you need to understand that the covid-19 global testing market is HUMUNGOUS. It is measured in millions of tests daily, to do proper test, track and trace, to reduce the R factor well below 1. It is not a question of NCYT v GDR v AVCT v SONA. It is , what is the USP of each company's product offering(s), and underlying profit margin for scale production.
I own both GDR and AVCT, since March, and happy to hold both even now. NCYT I missed, but I wouldn't touch it with a bargepole now.
As I mentioned a few weeks back, the Farr Effect is very likely to show up with rapidly diminishing new cases and deaths per country, so any diagnostic company that relies more than 70% on covid-19 for sales growth is likely to see a valuation discount to the others with a broader product range, and a valuable IP platform outside of covid-19.
GDR will serve the hospital PCR market, especially in developing country markets but also, hopefully, in the UK and USA. Its speed of response should be a competitive advantage over NCYT and other diagnostic suppliers. Heat and transportation indifference are other added advantages.
AVCT will come to dominate the very rapid POC consumer market, outside of hospitals, for which a 10-minute turnaround time is EXACTLY what people, businesses and agencies will demand, to get out of lockdown and allow freedom to travel internationally again. They are not alone in that nascent market, nor do they have clinical validation or regulatory approval yet, but the indications from today's RNS and the speed of securing £35mn in fresh equity capital, are very promising.
Horses for courses. Pick your stable, and buy both, if you have the funds. Both should be long term winners. DYOR.
Well, the reason for the price drop is now over. A good old fashioned placed at 120p. So the sp will gravitate to that level and stay around there for an indeterminate period. And it may also explain @MylesMcMulty's radio silence, with Parts 2 and 3 of his report, if he was made an insider.
This is still a multi-pronged biotech/diagnostics business. More so now than ever, as the placing proceeds are geared 35/10 towards the therapeutics division vs diagnostics (Covid-19). So now Avacta will have proper scale of funds to develop both sides in tandem, without the urgent need to scurry around and find a larger pharma partner in a rush and accept less than best terms, for Avacta. Develop the AV6000 IND and other pre-clinical studies, and increase value-added. This is where the real long term value lies for Avct.
But the £10mn for the Covid-19 effort presumably implies some WC needed to ramp up reagent supplies in readiness for a commercial scale production/marketing effort, once validation and regulatory approvals are cleared. This RNS suggests that is still about to happen. My only concern was that something might be going a bit awry with the Cytiva LFD prototype design. I think not after this rns.
Not happy to see the sp drop from £2 but I can definitely live with the use of proceeds explanation. It's for LONG and NEAR-GROWTH, and not to keep the lights on.
Still on track to become another UK £bn+ MC biotech company.
One thing I still can't get my head round with GDR, is why the PHE is banging down its doors now to mass order. Temperature stability isn't the issue here. It is speed of test result now.
And this, from Avacta's legal advisory team, yesterday:
All this effort with Meusa19 surely not just for appearances sake, especially when hefty legal fees are being paid! Stay calm, everyone.
Who said I was turning? In your cosmic dreams.
I've been here since the Friday it closed at 40p and was buying all the way up to 110p and remain fully invested. In fact I have added once yesterday and twice this morning.
My point about @Myles applies to anyone who comes on to a public BB, announcing a large position, gets a big following, then doesn't deliver on what he told everyone he was going to write up over the Bank Holiday weekend. It's not in keeping with that analyst's style. That's all. I am very well able to read RNSs myself, listen to and look at AS deliver very professional presentations and interviews, so I am in no way beholden to @Myles for my beliefs, though I would say he has a very good writing style that I honestly enjoy reading from an analytical point of view.
If you believe everything you've read in RNSs from Avacta, if you trust that Alastair Smith is totally switched on about the potential of the Affimer IP technology,, if you appreciate the biotech kudos of the various platform collaborations, globally, that Avacta has already committed to, then if you already hold shares, remain strong and confident that this is a winner.
I don't know over what time frame, but I'll venture to suggest it is over weeks, months and years. I can't call a few days, as I'm not a day trader, and I don't need to ramp to support a leverage position. Shorters, on the other hand, smell blood from weak holders, but the fundamentals will win out. That I am convinced of. So I just add on mornings like today. GLA.
Hang on a minute. It's ok for Banjowest to designate himself as the Chief Exposer of Shorters, but to get away scot-free with his mischievous photoshop images of Avacta rapid test strips and BJ wearing an Avacta T shirt? A bit of fun, or a ramping effort?