Research on Avacta Group PLC (AVCT:LON) from Trinity Delta
Trinity Delta view: Lead compound, faridoxorubicin, has provided proof-of-concept for Avacta’s pre|CISION PDC platform and specifically FAP-activation at the tumour site; however, in our view, greater value lies in next-generation programmes, including AVA6103. AVA6103 is on the cusp of entering the clinic: Phase Ia is due to start in Q126 in four cancer indications (cervical, gastric, pancreatic, small cell lung cancer) identified in conjunction with Tempus AI. This partnership, as well as the highly innovative use of AI to create a synthetic competitor profile for AVA6103, emphasises management’s pioneering approach and clear strategic ambitions. These results also support the view that pre|CISION PDCs could become a credible alternative to ADCs and highlight how selective activation of highly potent drugs only in the tumour microenvironment should lead to a valuable pipeline of novel, highly clinically relevant, targeted therapeutics. We value Avacta at £468m, or 106p/share.