LONDON (ShareCast) - (Sharecast News) - Avacta Group reported a reduced pre-tax loss of £28.98m from continuing operations in 2024 on Friday, down from £31.13m the year prior, as it accelerated its transformation into a pure-play oncology biotech.
Group revenue rose marginally to £24.42m, driven by a 14.7% increase in sales from the diagnostics division, which was now being divested.

Therapeutics revenue fell to £0.11m from £2.85m, reflecting the absence of milestones from AffyXell.

However, Avacta said it continued to expand its clinical and research activities, including progression of its lead preCISION programme, AVA6000 - or FAP-Dox - into phase 1b trials across several cancers.

Initial data from the expansion cohorts was expected in late 2025 and early 2026, with phase two trials also planned for the first half of next year.

The AIM-traded company also advanced its second candidate, AVA6103 - FAP-EXd - into IND-enabling studies and GMP process development, aiming for a phase one trial in the first quarter of 2026.

A strategic collaboration with Tempus was formed to integrate AI-driven trial design and patient identification.

Administrative expenses increased to £12.05m, reflecting executive changes and costs linked to the group's reorganisation.

Impairments of £22.41m were recognised on assets held for sale, including Launch Diagnostics and Coris, contributing to a total loss for the year of £52.84m.

Avacta said it ended the year with £12.9m in cash, rising to £17.3m as of April after the divestment of Launch Diagnostics.

The company said its cash runway now extended into the first quarter of 2026.

Financing was supported by a £31.1m equity raise and further conversions of its £55m convertible bond.

The fair value of the associated derivative liability fell to £1.28m, producing a £13.72m gain.

With the diagnostics exit near completion, Avacta said it had significantly reduced its liabilities and non-core assets.

"Over the past year, we have transformed the business into a dedicated therapeutics company focused on our unique preCISION platform," said chief executive officer Christina Coughlin.

"We are pioneering a novel, differentiated class of medicines, which has the potential to revolutionise drug delivery.

"This unique platform has the potential to treat up to 90% of solid tumours by repurposing a range of effective oncology drugs to significantly reduce toxicity and side effects."

That, Dr Coughlin said, represented a "potential breakthrough" for patients and a "major opportunity" for Avacta.

"With our first programme in the clinic, we expect to release the initial data in salivary gland cancer for FAP-Dox - AVA6000 - towards the end of 2025 and in triple negative breast cancer in the first half of 2026, with potential for phase two trials in the first half of 2026.

"FAP-EXd - AVA6103 - has advanced into IND-enabling work this year and we plan to initiate the phase one trial in early 2026."

Christina Coughlin said that at the same time, the company was "actively pursuing" a number of commercial opportunities.

"Overall, 2025 and 2026 are set to be transformative for Avacta, driven by a number of catalysts to drive shareholder value."

At 1249 BST, shares in Avacta Group were down 5.5%a t 32.37p.

Reporting by Josh White for Sharecast.com.

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