Back to Newsroom
Back to Newsroom

Edison Issues Update On Avacta Group (AVCT)

Tuesday, 29 October 2019 06:15 AM

Edison Investment Research Limited

LONDON, UK / ACCESSWIRE / October 29, 2019 / Avacta's 12-month results to July 2019 highlight ongoing momentum, as evidenced by three new partnerships (LG Chem, ADC Therapeutics and New England Biolabs), advancement of its pipeline towards the clinic and robust revenue growth in its research and diagnostic reagents division. Avacta recently announced a multi-target (focused on cancer) collaboration and licensing agreement with ADC Therapeutics to develop Affimer drug conjugates, providing further validation for Avacta's technology. Avacta's pro-doxorubicin compound AVA6000 (utilising Tufts' linker technology) is expected to start clinical trials in Q220, while lead Affimer AVA004 (PD-L1) is shortly expected to complete cell line development. We value Avacta at £47m or 40p/share.

We value Avacta at £47m (or 40p/share) vs £51m (or 44p/share) previously. The reduction is due to lower net cash. In addition, we have rolled forward our model and updated for FX. We do not currently include in our valuation the proposed share issue of 59.8m shares at 15p/share, which should raise gross proceeds of up to £9m. The share issue will be voted on at the upcoming AGM on 4 November.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:
Daniel Wilkinson, +44 (0)20 3077 5734
Susie Jana, +44 (0)20 3077 5700
[email protected]

Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn https://www.linkedin.com/company/edison-investment-research
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv

SOURCE: Edison Investment Research Limited

Topic:
Company Update
Back to newsroom
Back to Newsroom
Share by: