Further losses at Avacta as investment programme takes its toll

THE chief executive of Wetherby-based Avacta is confident that the company has made “good progress” despite predictions that it will return increased losses this year.

The diagnostic tools business said that it has invested in its therapeutics research and development programme during the year and now expects EBITDA losses for the year to 31 July 2016 to nearly double from £2.3m in 2015 to £4.5m.

Revenues for the year ended 31 July 2016 grew by approximately 19% to £2.15m, which the company said was in line with expectations.

During the period, Avacta has invested in its laboratories in Cambridge and Wetherby which are now operational.

It has also identified three proteins which could be used to develop new tests to diagnose the Zika virus from its early stages.

Dr Alastair Smith, Avacta group chief executive officer, commented: “We have made good progress in the key areas that we set out at the half year in our detailed strategy for commercialisation of Affimer reagents for research, diagnostics and therapeutics.

“We have made good progress in the Affimer therapeutic programmes and we have now achieved a significant milestone: the first animal study has been initiated, with no adverse effects.

“The success of our programme to develop specific Affimer binders to the Zika NS-1 protein is a perfect example of the speed with which high quality Affimer reagents can be developed to answer an urgent need where there is a gap in the antibody offering.

I look forward to updating the market as we develop these and other products further with clinical and commercial partners.”