Foundations for two healthy businesses now in place
Lighthouse | 30 September 2021
Trinity Delta view: The development of a competitive COVID-19 LFT has demonstrated the value of Affimer proteins for diagnostic applications. The rapid creation of an accurate and sensitive test has established Avacta’s skills and abilities within the industry. Attention now shifts to commercial execution, with the challenging market environment limiting the near-term revenue visibility. The Therapeutics operations should prove to be the longer-term value driver, as the Affimer and pre|CISION platforms have the potential to generate an extensive pipeline of prospective products. Although Phase II proof-of-concept data will be required, results from Phase I studies could provide useful signposting. We currently value Avacta at £710m, or 280p per share, with the Diagnostic opportunities representing £133m and the Therapeutic pipeline rNPV £559m.
30 September 2021
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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