TPI provides its latest research note on Avacta Group plc (AVCT.L).

Avacta has announced an extension to its collaboration and license agreement with Daewoong Pharmaceutical Co. Ltd. (KSX: 069620, ‘Daewoong’). AffyXell Therapeutics, the joint venture established in South Korea by the two companies, will now also undertake research covering the SARS-COV-2 neutralising Affimer molecules for the treatment of COVID-19, while also ensuring that it is prepared for rapid development of similar therapies for future global pandemics. Given that the JV’s research & development costs are fully funded by Daewoong, Avacta has effectively established a low-cost means by which to actively participate in the exciting field of cell and gene therapy, while still retaining all therapeutic right to Affirmers outside these areas. Although AffyXell is still a young business, the direction of resources, IP and timely application by its founding companies suggests opportunity for substantial value creation exists. Possibly this was best highlighted in a recent white paper by Pharma Intelligence that detailed acquisitions of such early clinical stage assets being completed in the range of US$1bn to US$5bn over the past 12 months.

Read More AvactaGroupplc_29_7_20_FINAL_BG.pdf

We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Avacta Group plc Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

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