Avacta Group Regulatory News (AVCT)

11 Sep 2008 07:00

Avacta Group plc

Product Launch

Contaminant detection service for high-value biopharmaceutical industry

Avacta Group plc ("Avacta"), which provides novel detection and analysis technology for the pharmaceutical, defence/security and clinical diagnostics markets, along with contract research services for the biopharmaceutical industry, announces the development of a new detection service to support biopharmaceutical drug development.

Avacta has developed a quantitative polymerase chain reaction (QPCR) test to detect contaminants in the drug development process and during production, and announces the launch of its QPCR safety testing service for biological therapeutic manufacturers. Avacta aims to provide a comprehensive analytical service to existing and new customers in the rapidly growing biopharmaceutical sector which outsources $16.2 billion of contract services per year; a figure that in the first quarter of 2008 was increasing at an average rate of 24%.*

The biopharmaceutical industry commits a significant amount of their drug development budget to ensure that potential drugs under development are safe for use and free from any incidental contaminating agents that may be accidentally introduced during production. The sensitive and specific detection of residual DNA, viruses and mycoplasma that may contaminate cell lines or products is a vital element in bringing a safe product to market.

Development of a broad services portfolio will allow Avacta to provide a greater depth of support in the drug development process and help win more high-value contracts including the analysis of clinical samples. Avacta is targeting batch release testing and other long term repeat service requirements in its marketing activity.

Alastair Smith, Chief Executive Officer, commented:

"The expansion of Avacta's analytical services is key to providing a comprehensive "one stop shop" to the biopharmaceutical sector, underpinning revenue growth and market presence in our core market for technology products to be launched in due course. Safety testing of biopharmaceutical products and the cells/additives used to produce them is a mandatory safety requirement during each stage of drug development, meaning there are significant opportunities for revenue generation and rapid market penetration.

It's another very solid step forward for Avacta in our development of a high quality, comprehensive service to the biopharmaceutical sector and follows on from our launch of the Biophysical Toolkit and the ViVax Toolkit last year."

11 September 2008Enquiries:Avacta Group plc Tel: 0870 835 4367 Alastair Smith, Chief Executive Officer Tim Sykes, Chief Financial Officer Haggie Financial LLP Tel: 020 7417 8989

Nicholas Nelson / Kathy Boate Nicholas.nelson@haggie.co.uk

WH Ireland Limited Tel: 0161 832 2174 David Youngman Novum Securities Limited Tel: 020 7562 4700 Henry Turcan / Michael Brennan

\* The Contract Research Annual Review 2008. Biopharm Knowledge Publishing

Notes to Editors:About Avacta

Avacta was spun-out from the University of Leeds in 2004 by its current management team as a biophysics company, with the aim of combining the disciplines of physics and biology to develop innovative technologies and expert technical services to address needs in the pharmaceutical, defence and clinical diagnostics markets. Avacta has a core bio-analytical technology development programme addressing the needs of the biopharmaceutical sector to fully characterise their new products at the earliest stage in their development to reduce the risk of late stage failure. High value solutions in defence and clinical diagnostics are also being provided by these core bio-analytical technologies. A successful and growing part of the Avacta business model is its technical services arm, Avacta Analytical Ltd, which is focused on providing leading edge contract research to the biopharmaceutical and healthcare/personal-care materials sectors. Avacta listed on AIM in August 2006 through the reverse takeover of Readybuy plc which changed its name to Avacta Group plc.