The Wetherby-based firm reported revenues of £2.9m, up from £2.1m the previous year. However, it suffered an operating loss of £29.1m, widening from a loss of £18.8m the year before.

Avacta said increased research and development and manufacturing investment within its diagnostics division and clinical development costs in the therapeutics division, led to a reported loss from continuing operations of £26.4m.

Dr Alastair Smith, CEO of Avacta, said: "It has been a period of transformational progress for the group, including many firsts for both the therapeutics and diagnostics divisions and despite the many operational challenges resulting from the impact of the pandemic. I would like to thank all our staff for the outstanding commitment shown to deliver this progress.

"Our therapeutics division has transitioned to being a clinical stage business through the dosing of the first patient in the Phase I study of AVA6000, increasing the division's intrinsic value and attractiveness to specialist investors and pharmaceutical partners.

"Success in the ongoing Phase Ia study, which will likely read-out in the middle of 2022, will not only potentially create a valuable chemotherapy asset but will also be a first validation of the pre|CISION platform, highlighting a promising pipeline of chemotherapies with the potential to significantly improve patients' lives.

"Our diagnostic division is now ISO13485 certified and has established all the necessary product development functions in-house, removing the need to rely on multiple external partners. We are now developing a pipeline of IVD products as well as improving the performance of our antigen test for Covid-19 to ensure it can be commercialised as soon as possible.

"We are confident and excited about the immediate and long-term future prospects of the Group, with both potential near-term value drivers relating to AVA6000's clinical trial progress, a pipeline of IVD products and a redeveloped SARS-CoV-2 antigen test offering immediate and long-term opportunities."

The firm said it is "very confident and excited about the immediate and long-term opportunities".

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Thank you

James Mitchinson

Wetherby drug developer Avacta hails progress despite operating losses widening to £29.1m in 2021