Trinity Delta FAP-Dox cardiotox impresses; crucial £16m fundraise

FAP-Dox cardiotox impresses; crucial £16m fundraise

Lighthouse | 20 October 2025

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The latest data from the faridoxorubicin (FAP-Dox, AVA6000) Phase Ia study were presented at ESMO The safety data continue to impress, with no severe cardiac adverse events (which limits standard doxorubicin dosing) regardless of cumulative dose (the maximum reached was 550mg/m²). In addition, there was favourable tolerability and side-effects across both two- and three-week dosing regimens. In the salivary gland cancer (SGC) cohort, although a small population (n=11), the median PFS (progression free survival) has yet to be reached, suggesting a more durable response than seen in historical controls. Faridoxorubicin is the lead asset from Avacta’s proprietary pre|CISION platform, and its selective activation in the tumour microenvironment (TME) underpins the whole tenet of minimising systemic toxicities and improving patient outcomes.
Avacta has also successfully raised £16m (gross) through the issue of 25.4m new shares at 63p each (a discount of c 8.7%). The shares, representing 5.8% of the issued capital, were placed with institutional and HNW investors, with Zeus Capital as the sole bookrunner. These shares will be admitted to trading on 3 November. The raise is considered a related party transaction as Richard Hughes is a non-executive director and associated with Zeus Capital. The fees payable to Zeus are a commission of £800k (5%) and a corporate finance fee of £50k. This placing satisfies prior convertible bond amendments (September 2025 Lighthouse), including cash settlement of the current quarterly repayment and interest, and deferral of the January and April 2026 repayments to October 2027.
Importantly, the raise extends the cash runway into H226 and allows management to continue its clinical programmes through to the next inflection points. Importantly, the equity issue allows the whole of the ownership to be retained as Avacta enters what we believe should its defining period as the utility, and value, of the pre|CISION platform becomes clear.
Upcoming catalysts include: (1) Phase Ib faridoxorubicin dose expansion data from the SGC cohort by end 2025; (2) IND submission for second asset AVA6103 (FAP-EXd) by late-2025, with plans for Phase I initiation in Q126; (3) Phase I faridoxorubicin data in triple negative breast cancer (TNBC) during H126; and (4) further details on the recently disclosed dual payload peptide drug conjugate (October 2025 Lighthouse).

Trinity Delta view: Although addressing attractive, and commercially relevant, indications, we view faridoxorubicin’s (FAP-Dox, previously AVA6000) primary role as being proof-of-concept demonstration of FAP-targeted biotherapeutics. The versatility and broad potential of Avacta’s pre|CISION platform, with the ability to selectively activate potent drugs in the TME, should lead to a deep pipeline of novel targeted therapeutics. The successful £16m placing removes funding uncertainty and allows management to progress faridoxorubicin and, more importantly in our view, FAP-EXd (AVA6103) through the next stages of clinical development. Following this raise we suspend our forecasts and valuation, as is our practice, but for context our previous valuation was £457m ($571m), or 111p/share.

Lighthouse

20 October 2025


Price	69.00p
Market Cap	£283.6m
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 faridoxorubicin is in Phase Ib, and multiple next generation candidates are 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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