Edison Initiates Coverage on Avacta Group (AVCT)

Edison Investment Research Limited


Edison Initiates Coverage on Avacta Group (AVCT)

Thursday, June 13, 2019 8:25 AM

LONDON, UK / ACCESSWIRE / June 13, 2019 / Avacta (AVCT) is developing its Affimer technology for use in therapeutic and diagnostic/reagent applications. The potential of the Affimer technology lies in its formatting capabilities, particularly in the creation of bispecific and TMAC Affimer drug conjugates. Its lead therapeutic asset (AVA004) is a programmed death-ligand 1 (PD-L1)-targeting Affimer for which the company expects to submit an investigational new drug (IND) application in Q420. AVA004 will serve as the first clinical validation of the Affimer technology and will form the base of the clinical development of a PD-L1/LAG-3 bispecific (AVA021) and the first TMAC Affimer drug conjugate (AVA004/100). We value Avacta at £51m or 44p/share.

We value Avacta at £51m or 44p/share based on a sum-of-the-parts valuation built on an rNPV for AVA021, the LG Chem partnership and the peer valuation of the reagents/diagnostic and animal health divisions, in addition to adding in net cash. AVA021 (PD-L1/LAG-3) contributes approximately 50% to our valuation.

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