AffiDX LFT sales paused to improve Omicron detection
Lighthouse | 10 January 2022
Trinity Delta view: This clearly disappointing news effectively pushes back the commercialisation of the AffiDX SARS-CoV-2 LFT. The positives are that management has identified the issue and responded promptly and, importantly, the issue does not lie with the Affimer technology. Avacta’s Diagnostics business demonstrated its technical abilities and the ability to react rapidly to problems when creating the original LFT, hence it will hopefully resolve this issue quickly too. We note that there is also the possibility that the sensitivity of other marketed COVID-19 LFTs to Omicron may be similarly impacted. The uncertainties around timelines, in addition to the challenging market environment, prompt us to suspend our forecasts and valuation until there is greater visibility. Our prior Avacta valuation was £710m (280p per share), with the Diagnostic opportunities representing £133m. We continue to view the Therapeutics pipeline as the greater driver of long-term value; our £559m rNPV for the Affimer and pre|CISION platforms is unaffected by this announcement.
10 January 2022
Avacta owns two novel technology platforms: Affimer and pre|CISION. Affimer proteins are antibody mimetics being developed as diagnostic reagents and oncology therapeutics. pre|CISION improves potency and reduces toxicity of cancer drugs by only activating them inside the tumour. Successful clinical trials would be transformative for Avacta.
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