Avacta (AVCT) 


Data and clinical progress validate pre|CISION platform

Please find attached our Update note on Avacta which reviews recent AVA6000 data and reinstates valuation and forecasts. Avacta is a UK-based biopharmaceutical company developing next-generation targeted cancer treatments, based on its two proprietary platforms: pre|CISION and Affimer.


Symbol       AVCT (AIM London) 
Price           41.00p (£147.6m)
Date            6 June 2024


Recent updates on current lead asset AVA6000, a peptide-drug conjugate of doxorubicin, suggest the programme remains on track to move into dose expansion cohorts in H224. Most recently, AACR data confirm that AVA6000 is working as intended, with selective activation at the target tumour site, lower toxicities than standard doxorubicin, and anti-tumour effects in cancers with over-expression of FAP and that are sensitive to doxorubicin monotherapy. In addition, there have been no unexpected safety signals in the first dosing cohort of the optimised two-weekly schedule, important given the more frequent administration. Continued successful clinical progress with AVA6000 also helps to validate the proprietary pre|CISION platform. This could have wide ranging potential in oncology, with the opportunity to develop next-generation targeted cancer treatments. Details on the broader pre|CISION pipeline are expected in H224. Our valuation post FY23 results and the March fundraise is slightly increased to £675m (equivalent to 188p/share).

 

  • AVA6000 remains on track, with expansion studies in H224 Progress in the ongoing Phase I trial of AVA6000 continues, with completion of the first cohort in the two-weekly dosing arm of the study and no adverse safety signals observed. This is important given the more frequent dosing schedule. Three patients have now been dosed in the second cohort of this arm. This puts AVA6000 on track to move into the planned dose expansions during H224. Recent AACR data, focused on safety and efficacy of AVA6000 when dosed every three weeks, demonstrated that AVA6000 is selectively activated at the target tumour site, resulting in lower toxicities than standard doxorubicin, and leading to anti-tumour effects in cancers with over-expression of FAP and sensitivity to doxorubicin monotherapy.

 

  • Sub-study could help maximise future potential of pre|CISION A new sub-study has also been initiated as part of the Phase I trial of AVA6000 to examine levels of FAP expression. An investigational, potentially complementary diagnostic, with partner SOFIE’s [18F]FAPI-74 in PET scanning, is being used to characterise disease burden. Diagnostics to optimally select patients that would benefit from FAP activated pre|CISION therapeutics will be important in the future to maximise the value of Avacta’s proprietary platform.

 

  • Valuation updated to £675m Our valuation is now £675m (from £672m), which reflects updated forecasts post FY23 results, revised AVA6000 launch assumptions and the March £31.1m (gross) fundraise; this is now equivalent to 188p/share based on the higher share count post-fundraise. Key upcoming newsflow includes continued progress with AVA6000, notably into dose expansion studies, and updates on the broader pre|CISION pipeline, both of which are expected during H224.

 

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Analysts 
Philippa Gardner pgardner@trinitydelta.org
Lala Gregorek lgregorek@trinitydelta.org
Franc Gregori fgregori@trinitydelta.org