Diagnostics build-out continues with Coris acquisition
Lighthouse | 1 June 2023
Trinity Delta view: Avacta’s acquisition of Coris is another step on the pathway to create a full spectrum Diagnostics business that has sufficient product mass and geographic reach to become self-sustaining, both in terms of profitability and new application development. This second deal, following on the heels of Launch Diagnostics in October 2022, provides further momentum to the ‘buy and build’ strategy. While progress in Avacta’s Therapeutics business means it remains in the spotlight, we continue to believe that the less high-profile developments within the Diagnostics division should not be overlooked, and have the potential to create a uniquely positioned Diagnostics business. In terms of forecasts and valuation, at this stage, we view this latest acquisition as a relatively minor factor and will make the necessary adjustments as part of a regular review. Hence, we maintain our current Avacta valuation of £641m (equivalent to 228p per share).
1 June 2023
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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