Avacta losses widen as development spend increases

Clinical-stage biopharmaceutical company Avacta Group reported cash and short-term deposits of £37m at the end of its first half on Thursday, down from £54.5m a year ago and £47.9m at the start of the period.

The AIM-traded firm said revenues increased to £2.3m for the six months ended 30 June, from £1.8m in the first half of 2020.

It reported an operating loss of £11.3m, widening from £8.1m year-on-year, with research and amortisation of development costs increasing to £6.7m from £4.2m.

An increased research and development spend led to a reported loss of £10.2m, rising from £7m in the first six months of the prior year.

“It has been a period of very significant progress for the group, and a transformative one for both the diagnostics and therapeutics divisions,” said chief executive officer Alastair Smith.

“The progress made during the reporting period has been extraordinary, as indeed it has been over the last 18 months, under very challenging circumstances for staff with regards to restrictions on working conditions and the effects of the pandemic on our lives outside work.

“The progress that has been made is a reflection of the commitment and skills of our exceptional staff.”

Dr Smith said “significant value inflection points” were ahead for the company, with the potential to “transform” cancer therapy with its next generation of ‘preCISION’ chemotherapies and ‘Affimer’ immunotherapies, and with the opportunity to generate significant profitable revenues from the ‘AffiDX’ SARS-CoV-2 antigen lateral flow test and future in-vitro diagnostic products.

“We are confident and excited about the immediate and long-term future for the group.”

At 0911 BST, shares in Avacta Group were down 5.61% at 111.95p.