Avacta Group (AIM:AVCT ) has successfully generated several highly specific Affimer reagents needed to produce a rapid Covid-19 test as part of its collaboration with Cytiva.
The developer of Affimer® biotherapeutics and reagents said it had generated multiple reagents that bind the SARS-COV-2 viral antigen ahead of schedule in only four weeks.
The group kick-started the process in mid-March, shortly before it announced its collaboration with Cytiva, formerly known as GE Healthcare Life Sciences.
The group has identified Affimer reagents that bind to the spike proteins of the coronavirus and do not cross-react with other very closely related viruses, such as SARS and MERS.
The Affimer reagents will be characterised by Avacta with the aim of developing a rapid laboratory test for the SARS-COV-2 virus antigen within the next few weeks.
"The speed with which highly specific Affimer reagents can be generated is just one of the many significant advantages of the technology,” said Dr Alastair Smith, CEO of Avacta.
Shares in Avacta Group were trading 28.18% higher at 70.5p on Wednesday morning.
The Affimer binders will also be transferred to Cytiva shortly to implement in a point-of-care test strip which will give a visual read-out in minutes after using a sample such as saliva.
Testing is crucial to limiting and tracking the spread of this disease but also critical to global lockdown exit strategies and to address the ongoing need for testing as the virus reoccurs.
Avacta owns the intellectual property relating to the SARS-COV-2 Affimer reagents and retains all commercial rights.
The group said it was in active discussions with other global diagnostic companies in order to develop its antigen tests to increase high-throughput testing capacity on a world-wide scale.
Broker finnCap said this morning it would maintain its forecast and target price of 76p a share until it had “greater visibility” over a design freeze and/or clinical validation for the test.
However, the broker highlighted the potential near-term value that the test could potentially generate in a very large market (>$1bn) where current supply cannot meet global demand.
“The upside, if successful, is substantial, as illustrated by the c.£250m incremental value created by Novacyt’s COVID PCR-based antigen test,” analysts said.
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Avacta Group is also included in the Vox Covid-19 Crusaders index.