Trinity Delta view: In our view, the amended CB terms indicate management confidence in their ability to secure funds to advance Avacta’s pre|CISION assets through clinical development. This funding is likely to come from a variety of sources including partnerships, strategic investment, and/or an equity raise, and could be catalysed by key data readouts slated for the next 12 months: Phase I FAP-Dox SGC results in H225 (potentially at ESMO 2025) and TNBC data in H126. Appetite for Avacta equity has been demonstrated through the two recent oversubscribed equity placings; notably the proceeds being used to cash settle CB repayments has also resulted in less dilution than would have been the case with a direct equity settlement. CB amendments announced in tandem with this latest raise allow deferral of the next two quarterly repayments removing some pressure from near-term cash flow requirements. Subject to extending Avacta’s cash runway beyond Q126, there are multiple opportunities to unlock value through generating and developing a pipeline of highly novel tumour targeting drug conjugates. Our last published Avacta valuation is £449m ($561m).
Lighthouse
1 September 2025
| Price | 61.5p |
| Market Cap | £247.1m |
| Primary exchange | AIM |
| Sector | Healthcare |
| Company Code | AVCT |
| Corporate client | Yes |
Company description
Avacta is a clinical stage biotech focused on the novel pre|CISION platform to generate peptide drug conjugates to target delivery of toxic payloads into the tumour microenvironment, which has the potential to expand the reach and reduce the systemic toxicities of highly potent cancer therapeutics. Lead programme AVA6000 is in Phase Ib, with multiple next generation candidates in preclinical development.
Analysts
Lala Gregorek
lgregorek@trinitydelta.org
+44 (0) 20 3637 5043
Philippa Gardner
pgardner@trinitydelta.org
+44 (0) 20 3637 5042
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