Avacta (AVCT)
Having reached a pivotal point in its evolution, Dr Christina Coughlin was appointed as Avacta’s new Chief Executive Officer (effective 1 May 2024), with a view to steering the Group through its coming chapter of growth and transformation into a therapeutics-focused business. The upbeat statement that accompanied release of 2023 Preliminaries released on 30 April 2024, nevertheless remained very much in accord with TPI’s positive expectations. Significantly, it reinforced the view that the c.£31.1m (gross) new funding collected through February’s equity placing and March’s subsequent REX retail offer, which took cash-in-hand to c.£38m at end-March 2024, will be more than sufficient to service the anticipated spike in cash burn as the Group’s lead development, AVA6000, moves into key Phase 2 studies next year. In expressing a high level of confidence that results from the ongoing two-weekly dosing schedule plus follow-on expansion study will build conviction in pre|CISION™’s unique ability to concentrate a Doxorubicin (‘DOX’) warhead in the tumour microenvironment (‘TME’) while sparing healthy tissue and dramatically reducing toxicities, the Board recognises its highly protected technology has potential to become a ‘holy grail’ of next generation cancer medication.
Avacta expects to define recommended AVA6000 Phase 2 dosing and begin first patient expansion cohorts in 2H 2024. Final selection of Phase 2 indications (based on FAP positive disease and anthracycline sensitivity) is anticipated in 2H 2025 which, together with delivery of final Phase 1 data around the same time, should then enable commencement of the Ph.2 study. Having secured the 24+ months forward runway required to support planning for market introduction of the Group’s first targeted chemotherapy, the Board’s key ambition to retain 100% ownership of the platform looks likely to be realised. The projected reveal of the pipeline in 2H 2024 is expected to enable subsequent multiple licensing and partnerships deals with international pharmaceutical groups that might be expected to follow demonstration of significant improvement of an existing drug’s therapeutic index. In tandem with Avacta’s own ongoing in-house developments, such partnerships could dramatically accelerate roll-out of the technology to a broad range of solid tumour candidates, in the process ensuring substantial medium and long-term rewards for shareholders.
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