Clinical data provides optimistic outlook for life sciences business

Avacta Group, a life sciences company developing oncology drugs and diagnostics, says it is poised for further strong growth this year as it publishes its 2023 unaudited preliminary results for the year ended 31 December 2022.

It has recorded revenues of £9.7m (2021: £2.9m), an adjusted EBITDA loss (before non-cash and non-recurring items) of £15.1m (2021: £21.7m) and an operating loss of £32.6m (2021: £29.1m).

In October 2022, the Wetherby-based business completed a fundraise of £61.3m.

The business has two proprietary technology platforms, pre|CISION™ and Affimer^®, to develop oncology therapies for cancer patients.

Avacta says it believes the significant near-term value driver for its business is the clinical data from its Phase one study of its AVA6000 treatment.

The company says this could reduce the toxicities associated with many chemotherapies, so has potential to create safer, more effective and affordable oncology treatments.

Meanwhile, Avacta’s Diagnostics Division has begun an M&A-led growth strategy. It aims to build a substantial European in-vitro diagnostics business with pathology laboratory solutions for disease diagnostics and home testing to improve fitness, health and well-being.

Dr Alastair Smith, chief executive officer, said: “I am very encouraged by the favourable safety data emerging from the ongoing phase 1a dose escalation study of AVA6000, which has confirmed the tumour targeting potential of the pre|CISION™ platform.

“I am delighted with the ongoing integration of Launch Diagnostics into the Avacta Diagnostics division following our acquisition of the largest independent in-vitro diagnostics distributor in the UK in October 2022.

“This is a first step towards our vision of building a fully integrated in-vitro diagnostics company supporting the healthcare professional and broadening access to diagnostics for consumers via a careful, disciplined M&A led growth strategy.