Trinity Delta AVA6000 set for third dose escalation stage

AVA6000 set for third dose escalation stage

Lighthouse | 30 June 2022

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Avacta has announced AVA6000 has successfully completed the second dose cohort (120mg/m²) and, following a positive review of the safety data, will advance into the third dose cohort (160mg/m²). AVA6000 is a pre|CISION prodrug of the well-established cytotoxin doxorubicin, that began a two-part Phase I trial in August 2021.
The first part of the study is a typical open-label, multi-centre dose escalation (3+3 design) exploring safety, although some initial efficacy signals may be noted. The study is planned to have four cohorts of three to four patients each, for a total of 15 to 20 patients, to establish the maximum tolerated dose (MTD). This will guide the recommended dose that is taken into the Phase Ib part, which will have up to three cohorts of 15 to 20 patients each. At this dose, evidence of preliminary anti-tumour effects should be seen.
pre|CISION allows for the highly selective and precise activation of chemotherapy drugs within a tumour, offering the potential to enhance efficacy and, importantly, reduce systemic toxicities for many commonly used cancer therapies. It employs a substrate which is specifically cleaved by an enzyme (FAPα) that is highly upregulated (10x to 100x more) on the surface of tumour cells. AVA6000 is the lead pre|CISION programme and if it successfully demonstrates proof-of-concept it would lead to a portfolio of similarly acting oncology prodrugs.
Once AVA6000 has established proof of concept, we expect increased industry interest in the pre|CISION platform. Avacta has identified other chemotherapies whose clinical utility would similarly benefit from improved efficacy and reduced toxicities. The most advanced is AVA3996, a prodrug of an analogue of Takeda’s Velcade (bortezomib), which is commonly used for multiple myeloma. AVA3996 offers the prospect of reducing the dose limiting toxicities, principally peripheral neuropathy and thrombocytopenia, that constrain Velcade use to multiple myeloma and mantle cell lymphoma.

Trinity Delta view: Continuing progress of AVA6000 is an important value driver for Avacta with this programme representing the largest single element of our rNPV model. A successful proof-of-concept would result in a material uplift in our AVA6000 valuation. Importantly, this would also provide validation to the broader pre|CISION platform, leading to a wider appreciation of its potential utility. Our current Avacta valuation is £557m (equivalent to 219.1p per share), with AVA6000 valued at £51.9m (or 20.4p per share), and the remaining pre|CISION platform comprising £261.2m (or 102.7p per share). News flow over the next 18-24 months should also provide multiple value-inflection points.

Lighthouse

30 June 2022


Price	109p
Market Cap	£278.2m
Primary exchange	AIM
Sector	Healthcare
Company Code	AVCT

Corporate client	Yes

Company description

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.

Analysts

Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043

Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041

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