Avacta share price falls as interims disappoint
High cash burn and rising losses in the interim results to June 30 disappointed shareholders of Cambridge biopharma company Avacta and sent the share price down almost six per cent when the UK market opened today.
While the company heaped on ladles full of jam for the public announcement, shareholders were left looking for the bread and butter and made their views clear on the LSE share chat facility.
Avacta is developing cancer therapies and diagnostics based on its proprietary Affimer® and pre|CISION™ platforms.
Cash and short-term deposits at June 30 had fallen year-on-year to £37 million from £54m the year prior and from £47.9m at the end of December.
Revenues increased to £2.3m from £1.8m on the prior period. Research and amortisation of development costs increased to £6.7 million (£4.2m). The operating loss rose to £11.3m from £8.1m last time.
Chief executive Dr Alastair Smith said: “It has been a period of very significant progress for the group and a transformative one for both the Diagnostics and Therapeutics Divisions.
“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.
“Significant value inflection points lie ahead of us with the potential to transform cancer therapy with the next generation of safer preCISION™ chemotherapies and Affimer immunotherapies, and with the opportunity to generate significant profitable revenues from the market leading AffiDX® SARS-CoV-2 antigen lateral flow test and future AffiDX® in-vitro diagnostic products.
“We are confident and excited about the immediate and long-term future for the group.”