Avacta Group

www.avacta.com TICKER: AVCT     EXCHANGE: AIM

Avacta is a UK-based provider of analytical services and innovative biopharmaceutical laboratory instrument platforms and consumables for drug development and industrial applications. It is also involved in a range of laboratory based tests to veterinary practices worldwide, along with point-of-care rapid immunoassay diagnostics. The latter address both companion animals (dogs, cats and horses) and human health. Avacta's proprietary biopharmaceutical laboratory instrumentation requires ultra-low sample volumes of proteins and other molecules. It is designed to measure the aggregation, unfolding and stability of a drug candidate under different physical, chemical and formulation conditions. Thus, it facilitates the selection of a lead compound at an early development stage, predicts stability characteristics and probes multiple stability indicating parameters. Avacta has developed a series of tests for environments (indoor and outdoor) and food allergy, malassezia, sarcoptes, staphylococcus. Other diagnostic laboratory based tests include Acute Phase Protein (APP) for the detection of inflammation, infection and trauma and a range of ISAG (International Society of Animal Genetics) licensed genetic tests.


Progress as hoped
Published: May 01 2012

Avacta is a debt-free healthcare equipment and services company focused on the development, assembly and commercialisation of innovative laboratory analytical instruments and diagnostic platforms 
First half results read well, with a 72% increase in revenues to GBP 1.72m.  Key to this were Optim™ 1000, whose sales grew almost 4 times to GBP 0.81m, and Animal Health diagnostic testing services posted a healthy 24% increase to GBP 0.73m
Continued commercial progress, timely execution, an extensive pipeline of disruptive products and a sound balance sheet (GBP 5.8m cash resources) should allow the Company to further accelerate revenue growth
We have not changed our prior sales forecasts and maintain a target fair value range per share of 1.5 to 2.1p, versus current 0.83p level
Broadening their horizons
Published: Jan 13 2012

Avacta Group plc is an AIM listed, revenue-generating and debt-free healthcare equipment and services company based in the UK. 
In December 2011 it announced the acquisition of Aptuscan, enabling it to address a life sciences sub-market for protein microarrays that it estimates to be of at least $2bn scale and growing rapidly.
At the same time Avacta raised £4.8m (net) via a share placing. This gives it adequate funding to support the development of affinity reagents, new technology products and consumables,  and to accelerate the development of its diagnostic test menu. 
We place a fair value target range for the shares of 1.5 - 2.1p: between 2 and 3 times the current level.
'Best of Palls'
Published: Jun 13 2011

Avacta and Pall Corp. have today announced that they have extended their relationship by including Avacta's analytical services to the range of laboratory services currently offered by Pall Corp.'s Life Sciences division. With this new agreement the synergies between the two companies are even more apparent and strengthen Avacta's future top line growth opportunities. Commercial activity is also intensifying with completion of the first sale of an Optim® 1000 System (Optim) by Pall Corporation to one of the top 10 US pharmaceutical companies.
Fruit of the loom
Published: Apr 20 2011

H1 2011 proved very productive for Avacta with a number of positive developments with important implications for its future. Top and bottom line numbers significantly improved over the period and the balance sheet was strengthened by raising £1.95m (gross) from new and existing shareholders.

With two new technology products in the early stages of commercialisation, their manufacturing and R&D facility operational, an international distribution network for Optim®1000 in place and the completion of new Acute Phase Protein (APP) test kits for veterinary use, Avacta is now well placed to achieve its stated objectives.

We expect the Company to move to breakeven in the second half of FY2012, with the exciting revenue outlook driving profitability thereafter.


Foreign buyers gorging on UK stocks

Document can be downloaded here: UK plc ‘going for a song’

Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.

Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.

What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.

According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.

Happy investing. Published 27th August 2019