Christina Coughlin, who was appointed only 2 months ago as Avacta CEO, is certainly wasting no time. Today, the CEO announced a series of key management changes alongside a positive trading update.
In terms of personnel, a new Scientific Advisory Board has been created in order to guide AVA6000, the preCISION platform and AVCT's overall drug development strategy. Additionally, Darlene Deptula-Hicks, an "entrepreneurial financial leader" has joined as a non-exec, whilst long-term CFO Tony Gardiner steps down from the Board.
With regards to the clinic, the fortnightly dosing regime (Arm 2) for Cohort 2 of the AVA6000 Phase 1 trial has now been successfully completed. Two patients have also begun cohort 3, without any dose limiting toxicities being observed.
Here Avacta importantly remains on track to achieve its stated objectives for H2'24, including the initiation of the expansion cohorts and providing an update of the clinical data. Arm 2 of the trial is designed to help determine an optimum dosing regime for a future Phase 2 study.
Elsewhere, the Board continues to assess various strategic options for its diagnostics division, which may include a sale. The idea is to not only focus more on its Precision platform, and in particular taking its lead candidate AVA6000 through to commercialisation, but also create a pure-play oncology biopharma firm that will be more attractive to specialist biotech investors.
Nonetheless, the diagnostics division is increasing revenues, further expanding in Germany, and is on track to become EBITDA positive in H2'24. Coris' products are being cross-sold through Launch Diagnostics, whilst the Affimer screening technology has been transferred to Belgium - in turn, enabling AVCT's laboratory in Wetherby to be closed, whilst equally realising operational cost savings.
Lastly, YTD trading is said to be "in-line with market forecasts" with gross cash ending May'24 at around £35m, providing sufficient funds to progress AVA6000 into Phase 2 clinical trials and develop a wider pipeline of innovative new medicines.
CEO Christina Coughlin commenting: "The ongoing trial of AVA6000 is progressing well and remains on track to achieve our stated goals of initiating the expansion cohorts, updating the clinical data for AVA6000 and detailing our pipeline of innovative new medicines. We are also continuing to strengthen the Board with a new Chair and the appointment of a Non-Exec. These combined changes support our growing confidence that we have the right team and plan in place for this extraordinary science."
Chair Shaun Chilton adding: "I'd also like to thank Tony Gardiner for his commitment and service as CFO of Avacta. We're grateful that Tony will remain on an interim basis."
AVCT shares moved 9.4% higher on the announcement.
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