Avacta Group exploring opportunities for a dual listing on NASDAQ
The Yorkshire-based life sciences company Avacta is exploring opportunities for a dual listing on NASDAQ in the US.
Avacta was established to save lives by developing targeted cancer treatments and diagnostics. In a statement to accompany its interim results, Avacta said a process to divest the group's diagnostics division has also started in order to maximize value for shareholders and support its appeal to specialist international investors.
Shaun Chilton, chairman of Avacta Group, said “significant progress” had been made on key strategic priorities.
He added: "Alongside the board and wider team, we have carried out a detailed review of all the group's operations and financials with a focus on prioritizing further investments in therapeutics, including the acceleration of the AVA6000 clinical trial enrollment.
"We are very encouraged by the potential of the innovative medicines in the Avacta pipeline which we plan to present at our live R&D (research and development) spotlight in October focusing on the next generation of the pre|CISION platform.”
The pre|CISION platform allows dosing to be optimised to deliver the best outcomes for cancer patients.
He added: "We have commenced a process to divest the diagnostics division and have started to receive indicative offers.
"Our longer-term financing strategy is being formulated and includes a potential dual listing of the company on NASDAQ, which the board sees as a key strategic option for the company." Christina Coughlin, chief executive of Avacta Group, commented: "We are seeing notably positive progress on our drug development candidate AVA6000.. Along with the rest of the team, I'm excited about the opportunity and look forward to expanding the opportunity that pre|CISION offers."
Revenue for the six months ended June 30 2024 reduced to £11.26m from £11.89m recorded in the same period in 2023.
Exceptional expenses of £1.52m were incurred over the half year relating to both the closure of the Wetherby laboratory within the Avacta Diagnostics division, and the replacement of the group's prior chief executive officer, the statement added.
The statement continued: “The first six months of the year saw a number of managerial and operational changes. The company's financial position remains in line with the board's expectations.
"Avacta aims to leverage its proprietary pre|CISION platform to develop innovative oncology therapies that make a significant difference to cancer patients' treatment experience and outcomes.”
The statement added: “The equity fundraise in March 2024 significantly extended the group's cash runway and cash resources are being managed prudently. The group continues to explore all available pathways to provide optionality for financing its clinical therapeutics programmes over the longer term, including divestment of the diagnostics division, partnering, attracting global specialist biotech investors and potentially a NASDAQ dual-listing, on which further updates will be provided in the coming months.”