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

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GB:AVCT

Avacta Group plc

(LSE:AVCT)

Rating:48Neutral
Price Target:
47.00p
▼(-21.67% Downside)
Avacta Group plc's overall stock score is influenced primarily by its financial challenges, which weigh heavily despite some positive technical indicators and strategic progress in its oncology focus. The need for additional funding and financial losses are significant concerns, while technical trends provide some short-term optimism.

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 United Kingdom that focuses on developing innovative therapies and diagnostics. The company operates primarily in the life sciences sector, specializing in the development of Affimer® technology, which is designed for use in both therapeutic and diagnostic applications. Avacta's core products include Affimer therapeutics, which are engineered proteins designed for targeted drug delivery, and a range of diagnostic tests aimed at providing rapid and accurate results for various medical conditions.
How the Company Makes MoneyAvacta Group plc generates revenue through several key streams: the commercialization of its Affimer technology for therapeutic applications, which involves licensing agreements with pharmaceutical companies, and the sale of diagnostic products that leverage its Affimer platform. The company also earns income from collaborative research and development agreements, where it partners with other biotech firms and academic institutions to develop new applications of its technology. Additionally, Avacta may receive milestone payments and royalties from its partners, contributing to its overall revenue. Significant partnerships with established pharmaceutical companies enhance its earning potential and broaden its market reach.

Avacta Group plc Earnings Call Summary

Earnings Call Date:Jun 06, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Neutral
Avacta has made significant progress in transforming into a focused oncology biopharmaceutical company and advancing its clinical programs. While there is excitement around the clinical data and strategic collaborations, financial losses and funding needs pose challenges. The company's long-term potential is promising, but market conditions and operational hurdles present ongoing concerns.
Q4-2024 Updates
Positive Updates
Transformation to Oncology Focus
Avacta has successfully transitioned into a pure-play oncology biopharmaceutical company, focusing on their proprietary pre|CISION peptide drug conjugate platform.
Clinical Progress in FAP-Dox
The FAP-Dox program completed Phase Ia, showing elimination of cardiac toxicity, proof-of-concept, and a disease control rate of over 90% in salivary gland cancer.
Strategic Collaboration with Tempus
Avacta entered into a strategic collaboration with Tempus, leveraging AI to drive smarter clinical trials and refine indication selection for the FAP exatecan program.
Financial Position and Cash Runway
Avacta reported a cash position of $17.3 million as of April 2025, following the divestment of the Diagnostics business, extending the cash runway into the first quarter of 2026.
Intellectual Property and Sustained Release Mechanism
New intellectual property was filed, including a sustained release mechanism, providing a reset for the company's IP position and opening new therapeutic opportunities.
Negative Updates
Financial Losses and Increased Expenses
Operating cash outflows from continued operations were $24.5 million, and admin expenses increased to $12.05 million, contributing to an overall loss from continuing operations of $28.98 million.
Delay in AVA6000 Trial
The AVA6000 trial took longer than expected, starting in 2021 and extending into 2025, due to the novelty of the mechanism and challenges in patient recruitment.
Market and Stock Performance Challenges
Avacta's share price has not improved significantly, reflecting broader challenges in the biotech sector and market volatility.
Need for Additional Funding
Avacta will need to raise additional funds to support ongoing R&D and pipeline advancement, with a focus on securing long-term financing and potential NASDAQ listing.
Company Guidance
In the recent investor call, Avacta Group Plc provided detailed guidance on their fiscal year 2024 results and strategic direction. The company has repositioned itself as a pure-play oncology biopharmaceutical entity, having divested its diagnostics segment. Among key metrics, Avacta highlighted its cash position of $17.3 million as of April 2025, following a divestment, which extends its cash runway into the first quarter of 2026. R&D expenses were reported at $14.27 million, with administrative expenses increasing to $12.05 million due to executive changes and professional expenses. The overall loss from continuing operations was $28.98 million. Avacta's FAP-Dox program, a key clinical focus, has advanced with the completion of Phase Ia and the opening of Phase Ib expansion cohorts, targeting salivary gland and triple-negative breast cancers. Initial data from these cohorts is expected in late 2025 and early 2026, respectively. Additionally, the FAP-Exatecan program is in IND-enabling status, with clinical trials anticipated to start in early 2026. The company also announced strategic collaborations and emphasized their intellectual property advancements, including a sustained release mechanism filed in September 2024. Avacta is exploring a potential dual listing on NASDAQ to enhance its capital market strategy and is actively seeking partnerships to accelerate the development of its pre|CISION platform assets.

Avacta Group plc Financial Statement Overview

Summary
Avacta Group plc exhibits significant financial challenges, including negative profitability and high leverage. The company's revenue growth is erratic, with consistent net losses and reliance 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 Revenue22.62M113.00K23.25M9.65M2.94M2.14M
Gross Profit7.55M113.00K11.24M4.23M-2.50M-973.00K
EBITDA-8.46M-17.62M-7.50M-34.78M-26.69M-16.40M
Net Income-25.89M-52.84M-24.95M-39.50M-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 Price60.00
Price Trends
50DMA
42.60
Positive
100DMA
38.12
Positive
200DMA
41.24
Positive
Market Momentum
MACD
4.31
Negative
RSI
63.67
Neutral
STOCH
70.61
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 60 is above the 20-day moving average (MA) of 50.59, above the 50-day MA of 42.60, and above the 200-day MA of 41.24, indicating a bullish trend. The MACD of 4.31 indicates Negative momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 70.61 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
£128.79M16.5069.08%6.37%0.49%-9.52%
72
Outperform
£69.73M6.4626.97%1.97%11.92%-33.76%
63
Neutral
£20.66M-2.91%-5.33%60.20%
51
Neutral
$7.89B-0.33-41.61%2.23%23.26%-2.03%
48
Neutral
£244.14M-73.02%
46
Neutral
£103.78M167.16%-100.00%-23.91%
39
Underperform
£137.04M-95.28%84.39%-41.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVCT
Avacta Group plc
57.00
-15.20
-21.05%
GB:BVXP
Bioventix
2,470.00
-1,539.62
-38.40%
GB:SCLP
Scancell Holdings
9.40
-7.35
-43.88%
GB:TRX
Tissue Regenix
29.00
-34.00
-53.97%
GB:HVO
Open Orphan Plc
10.15
-18.28
-64.30%
GB:4BB
4basebio UK Societas
885.00
-565.00
-38.97%

Avacta Group plc Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Avacta to Present Updated FAP-Dox Trial Data at ESMO Congress
Positive
Jul 30, 2025

Avacta Group PLC announced its presentation of updated data from the Phase 1a trial of FAP-Dox (AVA6000) at the 2025 European Society for Medical Oncology Congress. The data, focusing on patients with FAP-positive solid tumors, highlights Avacta’s ongoing efforts in the clinical development of its innovative oncology drug, which aims to improve targeted cancer therapy. This presentation underscores Avacta’s commitment to advancing its pipeline and strengthening its position in the oncology drug market.

M&A TransactionsBusiness Operations and Strategy
Avacta Group Completes Transition to Pure-Play Therapeutics with Sale of Coris Bioconcept
Positive
Jul 28, 2025

Avacta Group PLC has announced the sale of Coris Bioconcept SRL to 3B BlackBio Dx Ltd for £2.15 million, with additional potential earn-outs. This move marks the final step in Avacta’s transition to a pure-play therapeutics company, allowing it to focus on its pre|CISION® platform for oncology treatments. The sale is expected to extend the company’s cash runway into Q1 2026 and follows a previous divestment, reinforcing Avacta’s strategic shift towards its core therapeutics business.

Private Placements and FinancingBusiness Operations and Strategy
Avacta Group Settles Convertible Bond Installment Amidst Recent Equity Financing
Neutral
Jul 21, 2025

Avacta Group plc has announced the settlement of a quarterly principal and interest repayment for its unsecured convertible bond, reducing the principal by £2.55 million to £22.95 million. This follows a recent £3.25 million equity financing, with the Placing set to complete on 24 July 2025, reflecting the company’s ongoing financial strategies to support its operations and growth in the oncology drug market.

Private Placements and FinancingBusiness Operations and Strategy
Avacta Group Secures £3.25 Million in Strategic Equity Fundraise
Positive
Jul 17, 2025

Avacta Group plc has successfully raised £3.25 million through a conditional placing of new ordinary shares, aimed at settling a quarterly repayment of an unsecured convertible bond. This strategic move is intended to provide the company with greater financial flexibility as it navigates a crucial commercial phase with multiple upcoming catalysts. The placing, facilitated by Zeus Capital Limited, involves a discount on the share price and represents a less dilutive option for shareholders compared to other funding routes. This financial maneuver positions Avacta to capitalize on opportunities enabled by its pre|CISION® technology, potentially enhancing its market position and stakeholder value.

Shareholder MeetingsBusiness Operations and Strategy
Avacta Group’s AGM Results and Shareholder Engagement
Neutral
Jul 2, 2025

Avacta Group plc announced that all resolutions, except one, were passed at its Annual General Meeting. However, more than 20% of votes were against Resolution 2, prompting the Board to engage further with shareholders to understand their concerns. This decision reflects Avacta’s commitment to maintaining open communication with its stakeholders, which could influence its future strategic decisions and shareholder relations.

Executive/Board ChangesBusiness Operations and Strategy
Avacta Group PLC Q2 2025 Business Update: Strategic Advancements and Leadership Strengthening
Positive
Jul 2, 2025

Avacta Group PLC has provided a Q2 2025 business update highlighting significant progress in its strategic objectives, particularly in the clinical development of its pre|CISION® platform. The company is advancing its FAP-Dox (AVA6000) program in Phase 1b studies, showing promising efficacy in salivary gland cancers and preparing for data releases in late 2025 and 2026. Additionally, Avacta is strengthening its executive team and board, appointing new directors and a Chief Medical Officer to support its commercial partnership strategy. The company is also engaging with third parties to explore commercial opportunities and has appointed Zeus Capital as a joint broker to enhance its investor relations.

Executive/Board ChangesBusiness Operations and Strategy
Avacta Group Strengthens Leadership with Key Appointments
Positive
Jul 1, 2025

Avacta Group plc has announced the appointment of Dr. David Liebowitz as Chief Medical Officer and Yulii Bogatyrenko as an advisor in business development. Dr. Liebowitz, with over 30 years of experience in oncology and drug development, will lead Avacta’s clinical strategy to advance its pipeline of targeted cancer therapies. Mr. Bogatyrenko will enhance the company’s business development strategy with his extensive experience in commercial strategy and global drug launches. These appointments are expected to strengthen Avacta’s clinical development and corporate growth strategies, potentially driving value for both patients and shareholders.

Business Operations and Strategy
Avacta Group Strengthens Financial Advisory Team with Zeus Capital Appointment
Positive
Jun 30, 2025

Avacta Group plc has appointed Zeus Capital as a joint broker, alongside Peel Hunt and Panmure Liberum, to strengthen its financial advisory team. This appointment involves a related party transaction due to the association of Richard Hughes, a director of Avacta, with Zeus Capital. The board, excluding Hughes, has deemed the terms fair and reasonable for shareholders, potentially enhancing Avacta’s market positioning and stakeholder confidence.

Product-Related AnnouncementsBusiness Operations and Strategy
Avacta Reports Promising Results in Salivary Gland Cancer Trial
Positive
Jun 19, 2025

Avacta Group plc announced a promising partial response in a patient with metastatic salivary gland cancer during the dose expansion phase of its FAP-Dox (AVA6000) Phase 1b trial. This development is significant given the high unmet need for effective treatments in this rare cancer type, which lacks a preferred standard therapy. The company plans to release final data from the AVA6000 Phase 1a trial later in 2025 and will provide a business update at its upcoming Annual General Meeting.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Shareholder MeetingsFinancial Disclosures
Avacta Group Announces 2024 Annual Report and Revised AGM Date
Neutral
Jun 9, 2025

Avacta Group plc has announced the availability of its Annual Report and Accounts for 2024 and a revised date for its Annual General Meeting (AGM), now scheduled for July 2, 2025. The AGM will be held at Peel Hunt LLP in London, with limited capacity for attendees. Shareholders are encouraged to pre-register to attend, and a business update will be provided post-AGM, accessible online for those unable to attend. This announcement reflects Avacta’s commitment to transparency and stakeholder engagement, ensuring shareholders are informed and involved in the company’s developments.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Avacta Group Reports 2024 Results, Advances in Oncology Focus
Positive
Jun 6, 2025

Avacta Group plc has announced its preliminary results for the year ending December 31, 2024, highlighting its transformation into a dedicated oncology biopharmaceutical company. The company has made significant progress with its pre|CISION® platform, including the completion of Phase 1a trials for its lead asset FAP-Dox (AVA6000) and plans for Phase 1b and Phase 2 trials in various cancers. Avacta has also entered a strategic collaboration with Tempus to leverage AI for smarter trials and extended its cash runway into Q1 2026 through strategic divestments. The company is focused on establishing partnerships and securing long-term financing to support its innovative pipeline and enhance shareholder value.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Financial Disclosures
Avacta Group Delays Financial Results Announcement to June 6
Neutral
Jun 4, 2025

Avacta Group plc has announced a delay in the release of its preliminary financial results for the year ending December 31, 2024, now scheduled for June 6, 2025, due to additional audit time requested by the company’s auditors. The delay does not affect Avacta’s financial position or cash runway, and the company will conduct a live presentation for shareholders on the same day to discuss the results.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Avacta Group Strengthens Board with Key Appointments
Positive
May 28, 2025

Avacta Group plc has announced the appointment of David Bryant and Richard Hughes as Non-Executive Directors, enhancing its board with their extensive experience in pharmaceuticals and capital markets. This strategic move supports Avacta’s transformation into a dedicated therapeutics company, leveraging its preCISION® platform to advance its innovative pipeline and build long-term shareholder value.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Financial Disclosures
Avacta Group Delays Preliminary Results Announcement to June 4, 2025
Neutral
May 27, 2025

Avacta Group plc has announced a delay in the publication of its preliminary results for the year ended December 31, 2024, now scheduled for June 4, 2025, due to pending audit work related to the disposal of Launch Diagnostics. Despite the delay, Avacta assures stakeholders that there is no impact on its financial position or cash runway. The company will hold a live presentation for shareholders on the same day, providing an opportunity for investors to engage with the management team.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £40.00 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 PLC to Announce FY24 Results and Host Investor Presentation
Neutral
May 15, 2025

Avacta Group PLC announced it will release its audited preliminary results for the fiscal year ending December 31, 2024, on May 29, 2025. The announcement will be accompanied by a live investor presentation by CEO Christina Coughlin and CFO Brian Hahn, accessible through the Investor Meet Company platform. This event is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (GB:AVCT) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Avacta Group plc stock, see the GB:AVCT Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Avacta Group Announces Investor Webinar on Latest Cancer Therapy Developments
Positive
May 12, 2025

Avacta Group PLC announced an upcoming investor webinar featuring presentations by CEO Dr. Christina Coughlin and CSO Michelle Morrow. The webinar will discuss recent data on Avacta’s pre|CISION® candidates, FAP-Dox (AVA6000) and FAP-EXd (AVA6103), presented at the AACR Annual Meeting. This event highlights Avacta’s commitment to engaging with investors and showcasing its advancements in targeted cancer therapies, potentially strengthening its market position and stakeholder confidence.

The most recent analyst rating on (GB:AVCT) stock is a Buy with a £105.0000 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: Aug 02, 2025