Avacta Sharpens Focus on Therapeutics with Diagnostics Sale
Why we think this is good
The RNS announcement indicates that Avacta is taking a significant step towards becoming a pure-play biotechnology company by divesting its diagnostics business. This strategic move will allow the company to focus on the development of its promising therapeutics pipeline, which includes the lead candidate AVA6000 and the upcoming AVA6103 program. While the divestment will result in a non-cash loss, the £12.9 million in sale proceeds will provide additional cash runway to support Avacta's R&D investments. The corporate update on the drug candidates also highlights positive progress, with initial proof-of-concept data for AVA6000 and the advancement of AVA6103 into pre-IND preparation. Overall, the RNS suggests Avacta is making the right strategic decisions to enhance its focus on its core therapeutics operations.
Key Points
- Avacta to sell its UK-based diagnostics unit, Launch Diagnostics, for £12.9 million in cash
- Divestment is a key step towards Avacta becoming a pure-play biotechnology company
- Proceeds from the sale will be used to further develop Avacta's pre|CISION® platform
- Corporate update highlights positive progress on lead drug candidate AVA6000 and second program AVA6103
Summary
Avacta Group Plc has agreed to sell its UK-based diagnostics unit, Launch Diagnostics, for £12.9 million in cash to Duomed Belgium NV. This divestment is a significant step towards Avacta becoming a pure-play biotechnology company, as it also plans to sell its remaining smaller Belgian diagnostics unit. The sale proceeds will be used to further Avacta's pre|CISION® platform, which is the foundation for the company's innovative pipeline of peptide drug conjugates (PDCs) and Affimer® drug conjugates (AffDCs). The RNS also provides a corporate update on Avacta's lead drug candidate AVA6000 and its second program AVA6103, both of which utilize the pre|CISION® platform and have shown promising progress in preclinical and clinical development.