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Avacta Group plc (GB:AVCT)
:AVCT
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Avacta Group plc (AVCT) AI Stock Analysis

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GB:AVCT

Avacta Group plc

(LSE:AVCT)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
81.00p
▲(24.62% Upside)
Avacta Group plc's stock score is primarily impacted by its weak financial performance and poor valuation metrics. Despite strong technical indicators suggesting bullish momentum, the company's financial instability and lack of secured partnerships present significant risks. The earnings call provided some positive clinical updates, but financial constraints remain a concern.
Positive Factors
Clinical Program Progress
The advancement of Avacta's clinical programs, particularly faridoxorubicin, indicates strong potential for future therapeutic offerings, enhancing long-term growth prospects.
Strategic Collaborations
Strategic collaborations like with Tempus enhance Avacta's market reach and validate its technology, potentially leading to increased adoption and revenue growth.
Encouraging Preclinical Data
Promising preclinical results for FAP-exatecan suggest potential efficacy, bolstering Avacta's pipeline and supporting long-term therapeutic development.
Negative Factors
High Leverage
High leverage poses financial risks, limiting Avacta's flexibility and increasing vulnerability to economic downturns, impacting long-term stability.
Negative Cash Flow
Persistent negative cash flow indicates operational inefficiencies and reliance on external funding, challenging Avacta's ability to sustain operations long-term.
Unsecured Partnerships
The lack of secured partnerships limits Avacta's ability to expand its development activities, potentially hindering growth and innovation in the long term.

Avacta Group plc (AVCT) vs. iShares MSCI United Kingdom ETF (EWC)

Avacta Group plc Business Overview & Revenue Model

Company DescriptionAvacta Group plc is a biotechnology company based in the UK that focuses on developing innovative therapies and diagnostics for various diseases, including cancer. The company operates primarily in the life sciences sector, utilizing its proprietary Affimer technology, which is a platform for the development of therapeutic and diagnostic products. Avacta's core offerings include Affimer proteins that can be used for both research and therapeutic applications, as well as its development of a novel cancer immunotherapy and diagnostic tests for COVID-19 and other diseases.
How the Company Makes MoneyAvacta Group plc generates revenue through multiple streams, including the sale of Affimer technology and related products to research institutions and pharmaceutical companies. The company also earns revenue by entering into collaborations and licensing agreements with various partners, which may include upfront payments, milestone payments, and royalties on future sales. Significant partnerships with larger pharmaceutical firms can enhance Avacta's research capabilities and accelerate the development of its therapies, thereby contributing to its revenue growth. Additionally, revenues may be derived from its diagnostic products, particularly in response to ongoing health crises such as the COVID-19 pandemic, where the demand for rapid testing solutions has surged.

Avacta Group plc Earnings Call Summary

Earnings Call Date:Sep 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a company making significant progress in its clinical programs and preclinical data, with strategic collaborations enhancing market potential. However, financial constraints and the absence of secured partnerships pose challenges. Shareholder concerns regarding the share price remain unaddressed.
Q2-2025 Updates
Positive Updates
Clinical Program Progress
Avacta's lead program, faridoxorubicin (FAP-Dox or AVA6000), is advancing with promising preliminary data in salivary gland cancers. The company also anticipates dosing the first patient with FAP-exatecan in Q1 2026.
Encouraging Preclinical Data
Updated preclinical data for FAP-exatecan shows durable complete responses in animal models, indicating potential efficacy and durability of the response.
Financial Management
Avacta maintains a cash runway into Q1 2026. Recent financial activities include renegotiation of the Heights Convertible Bond and raising GBP 6.5 million to fund bond payments.
Strategic Collaborations
The Tempus collaboration has confirmed the market opportunity for Avacta's pre|CISION medicines, showing FAP expression in 90% of patients with solid tumors.
Negative Updates
Cash Position
Cash and cash equivalents decreased to GBP 12.65 million at the period end, compared to GBP 28.56 million for the same period in 2024.
Uncertainty in Partnerships
Despite ongoing discussions, no definitive partnerships have been secured, which is critical for further development activities beyond current funding.
Share Price Concerns
The share price does not currently reflect the perceived value of Avacta's pipeline, causing concern among shareholders.
Company Guidance
During the Avacta Group plc Interim Results Investor Presentation, several key metrics were discussed regarding the company's clinical programs and financial status. The call highlighted Avacta's progress in its clinical stage programs, notably faridoxorubicin (FAP-Dox or AVA6000) and FAP-exatecan, with the former advancing to Phase Ib and the latter on track for its first patient dosing in Q1 2026. The company presented encouraging preliminary data for faridoxorubicin in salivary gland cancers and outlined plans for further data updates at ESMO 2025. Financially, Avacta reported cash and cash equivalents of GBP 12.65 million as of June 30, 2025, with cash outflows from operations at GBP 12.14 million for the first half of 2025. The management highlighted a renegotiation of the Heights Convertible Bond and a GBP 6.5 million gross fundraising to support quarterly bond payments. Additionally, Avacta anticipates releasing further data on its programs, including a pipeline update leveraging its pre|CISION platform, with an emphasis on strategic partnerships and business development to support its financial strategy and minimize shareholder dilution.

Avacta Group plc Financial Statement Overview

Summary
Avacta Group plc faces significant financial challenges, with negative profitability, high leverage, and inconsistent revenue growth. The company relies heavily on external financing, indicating a precarious financial position.
Income Statement
35
Negative
Avacta Group plc shows significant revenue volatility with substantial net losses over the years. Gross profit margin in the latest report is 100% due to negligible cost of goods sold. However, the net profit margin is deeply negative, and EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Revenue growth has been erratic, recently declining sharply, reflecting inconsistent business performance.
Balance Sheet
40
Negative
The balance sheet reveals high leverage with a debt-to-equity ratio increasing over time, posing financial risk. The equity ratio has also weakened significantly, indicating diminished financial stability. Return on equity is negative due to consistent net losses. Overall, the balance sheet highlights substantial financial challenges and risks.
Cash Flow
30
Negative
Cash flow analysis shows negative operating cash flow consistently over the years, with free cash flow also negative, indicating cash burn issues. The free cash flow to net income ratio remains unfavorable, reflecting poor cash generation relative to losses. Financing cash flow is positive, suggesting reliance on external funding to support operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.62M113.00K2.85M9.65M2.94M2.14M
Gross Profit7.55M113.00K2.84M4.23M-2.50M-973.00K
EBITDA-15.07M-17.62M-14.12M-34.78M-26.69M-16.40M
Net Income-25.89M-52.84M-24.95M-36.94M-26.32M-18.89M
Balance Sheet
Total Assets89.29M48.27M73.19M92.65M47.00M67.46M
Cash, Cash Equivalents and Short-Term Investments32.53M12.87M16.63M41.78M26.19M47.91M
Total Debt30.60M22.93M23.51M62.94M1.70M2.04M
Total Liabilities41.13M38.99M51.39M74.21M5.78M5.53M
Stockholders Equity48.16M9.28M21.80M18.44M41.22M61.93M
Cash Flow
Free Cash Flow-20.57M-23.94M-16.13M-17.03M-21.82M-12.31M
Operating Cash Flow-19.14M-23.60M-14.87M-16.43M-20.51M-10.64M
Investing Cash Flow-2.44M-1.43M-9.00M-25.04M18.70M-21.90M
Financing Cash Flow28.36M26.09M-1.30M56.90M232.00K51.65M

Avacta Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price65.00
Price Trends
50DMA
69.30
Positive
100DMA
58.70
Positive
200DMA
46.93
Positive
Market Momentum
MACD
3.02
Positive
RSI
63.13
Neutral
STOCH
71.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVCT, the sentiment is Positive. The current price of 65 is below the 20-day moving average (MA) of 76.36, below the 50-day MA of 69.30, and above the 200-day MA of 46.93, indicating a bullish trend. The MACD of 3.02 indicates Positive momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 71.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AVCT.

Avacta Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£113.64M14.9764.40%7.89%-3.61%-6.35%
65
Neutral
£39.85M3.693.48%11.92%-33.76%
58
Neutral
£340.25M
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
£5.16M-4.90-5.41%-20.31%-19.35%
46
Neutral
£102.22M-7.46-94.12%
39
Underperform
£121.56M-7.90-209.34%198.49%-26.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVCT
Avacta Group plc
81.40
34.40
73.19%
GB:BVXP
Bioventix
1,875.00
-1,636.43
-46.60%
GB:SCLP
Scancell Holdings
9.55
-3.45
-26.54%
GB:TRX
Tissue Regenix
7.25
-50.75
-87.50%
GB:HVO
Open Orphan Plc
5.66
-15.50
-73.25%
GB:4BB
4basebio UK Societas
712.50
-587.50
-45.19%

Avacta Group plc Corporate Events

Business Operations and StrategyProduct-Related Announcements
Avacta Unveils Innovative Dual Payload Cancer Therapy
Positive
Oct 27, 2025

Avacta Group PLC has unveiled its first preclinical data for its dual payload pre|CISION® technology at the 2025 AACR-NCI-EORTC International Conference. This innovative approach delivers two therapeutic payloads simultaneously to the tumor microenvironment, potentially overcoming resistance mechanisms and enhancing tumor control. The company’s dual payload pipeline includes combinations of microtubule inhibition and topoisomerase I inhibition, as well as DNA damage response agents combined with exatecan. The pre|CISION® platform has shown promising results in terms of tumor selectivity and therapeutic efficacy, offering a novel approach to cancer therapy with significant implications for treating highly-resistant tumors.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £63.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Avacta to Present Innovative Oncology Platform Data to Investors
Neutral
Oct 23, 2025

Avacta Group PLC announced an upcoming presentation of their pre|CISION® dual payload peptide drug conjugate delivery system data, following their participation in the 2025 AACR-NCI-EORTC International Molecular Targets Congress. The presentation, scheduled for October 29, 2025, will be accessible to existing and potential shareholders, allowing them to engage with the company’s leadership and submit questions, potentially impacting Avacta’s market engagement and stakeholder relations.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £63.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Avacta Group Raises £16 Million to Advance Oncology Programs
Positive
Oct 20, 2025

Avacta Group plc has successfully raised approximately £16 million through an oversubscribed equity placement, which will provide additional working capital to advance its research and development programs into the second half of 2026. The funds will support the progression of the faridoxorubicin Phase 1b trial and the initiation of the FAP-EXd Phase Ia trial, while also allowing Avacta to maintain full ownership of its promising programs based on its pre|CISION® technology. This financial move also facilitates the deferment of certain convertible bond repayments, extending the company’s cash runway and enabling it to continue building its intellectual property estate.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £75.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Avacta’s Faridoxorubicin Shows Promising Phase 1a Results in Cancer Treatment
Positive
Oct 20, 2025

Avacta Group PLC announced promising results from its Phase 1a clinical trial of faridoxorubicin, presented at the European Society of Medical Oncology Annual Congress. The trial demonstrated favorable safety and tolerability, with no severe cardiac toxicity observed even at higher doses, and a significant improvement in progression-free survival for patients with salivary gland cancers. These findings highlight the potential of Avacta’s pre|CISION® platform to offer new treatment options for cancer patients, particularly those with limited therapeutic choices, and underscore the platform’s ability to protect normal tissues from toxicity while maintaining efficacy.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £75.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Product-Related Announcements
Avacta Unveils Dual-Payload Oncology Innovation
Positive
Oct 13, 2025

Avacta Group PLC announced the presentation of data on its first dual-payload peptide drug conjugate (PDC) at an upcoming international conference. This development marks a significant advancement in oncology therapy, as it allows for the selective and controlled release of two cancer-targeting drugs from a single molecule, potentially enhancing treatment effectiveness and addressing resistance mechanisms in tumors.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £75.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Avacta Group’s Earnings Call: Progress Amid Challenges
Oct 10, 2025

Avacta Group plc’s recent earnings call reflects a company making notable strides in its clinical programs and preclinical data, bolstered by strategic collaborations that enhance market potential. However, financial constraints and the lack of secured partnerships present challenges, with shareholder concerns about the share price remaining unaddressed.

Financial DisclosuresPrivate Placements and Financing
Avacta Group Reports Promising Interim Results and Strengthened Financial Position
Positive
Sep 30, 2025

Avacta Group plc has reported its interim results for the first half of 2025, highlighting significant progress in its clinical programs, particularly the faridoxorubicin (AVA6000) Phase 1b trial, which has shown promising initial clinical activity. The company has also renegotiated the terms of its Heights Convertible Bond and raised £6.5 million to fund upcoming bond payments, reflecting growing confidence in its R&D pipeline. Avacta anticipates multiple pipeline updates in late 2025, including data from its faridoxorubicin program, which could enhance its industry positioning and stakeholder interest.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £47.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Avacta Group Announces Interim Results and ESMO Congress Update
Neutral
Sep 15, 2025

Avacta Group plc has announced that it will release its unaudited interim results for the first half of 2025 on September 30, with a live presentation by its CEO and CFO accessible to shareholders and potential investors. Additionally, the company has updated the schedule for its presentation at the European Society for Medical Oncology Congress, where it will discuss its Phase I trial of FAP-Dox (AVA6000) in patients with FAP-positive solid tumors. These announcements highlight Avacta’s ongoing efforts to engage with stakeholders and advance its position in the oncology drug development sector.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £47.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Avacta’s pre|CISION® Platform Shortlisted for AIM Technology of the Year Award
Positive
Sep 9, 2025

Avacta Group plc has announced that its pre|CISION® platform has been shortlisted for the Technology of the Year Award at the AIM Awards, an event recognizing the achievements of fast-growing publicly quoted companies. This nomination highlights Avacta’s innovative approach to cancer treatment, which could enhance its market position and stakeholder confidence by showcasing its potential to revolutionize oncology drug delivery.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £47.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Business Operations and StrategyM&A Transactions
Avacta Completes Sale of Coris Bioconcept to 3B BlackBio Dx
Positive
Sep 1, 2025

Avacta Group plc has completed the sale of its entire issued share capital of Coris Bioconcept SRL to 3B BlackBio Dx Ltd, following the satisfaction of all closing conditions. This strategic move is expected to impact Avacta’s operations by allowing the company to focus more on its core business of developing targeted oncology drugs, potentially strengthening its position in the life sciences industry.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £47.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Avacta Group Secures £3.25 Million Fundraise and Amends Convertible Bond Terms
Positive
Aug 29, 2025

Avacta Group plc has announced amendments to its Convertible Bond and a successful equity fundraise of £3.25 million. The funds will be used to settle an upcoming bond repayment, while the bond amendments include deferred repayments and a new conversion price. This strategic move reflects Avacta’s progress in its oncology platform and strengthens its financial position, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £47.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 13, 2025