Demand grows for specialist Avacta's flagship offerings

The York-based business, which was spun out of the University of Leeds, has high hopes for the two devices.

Avacta has received a number of orders for Optim, including one from a global biopharmaceutical company.

Optim allows drug developers to gain vital information about compounds using tiny samples. Currently, drug analysis requires larger samples and expensive equipment and testing can take about 18 days.

It also reduces the risk in biopharmaceutical development and helps drug companies to bring products to market more quickly and cheaply.

Avacta expects to launch its first diagnostic product, Midas, into the veterinary market in the next few months.

The Midas device tests blood and serum samples.

Initially the device will test for an unspecified dog disease, but Avacta hopes soon to expand it to diagnose diseases in cats and horses.

Beyond that, it hopes to expand into endocrine, thyroid and viral infection tests, with the ultimate aim for the device being human blood tests.

The Midas device will sell for "low thousands" of pounds, and Avacta hopes to earn recurring revenues from consumable test cartridges.

Avacta said that all resolutions proposed at its Annual General Meeting last Friday were passed.

Chief executive Alastair Smith said: "I am pleased to report to shareholders that both operating businesses have generated year on year sales growth and that the market interest in both Optim and Midas is strong.

"The first Optim unit was shipped and successfully installed before Christmas and I look forward to reporting further progress to shareholders during February."

Avacta is at a pivotal point in its development as it looks forward to years of research and development translating into sales.

It reported revenues up 100 per cent at 940,000 for the year to the end of July, but said pre-tax losses deepened to 2.8m from 1.6m a year earlier.

The company provides technology and services to the pharmaceutical and diagnostics markets.

With 80 per cent of biopharmaceutical drugs failing in development, Avacta believes its Optim device saves drug companies time and expense.