Avacta Group Shares Climb: Advances Oncology Pipeline

Avacta Group plc (AIM: AVCT), a life sciences company focused on targeted oncology drugs, saw its shares rally over 7% on Tuesday after the company released its interim results for the first half of 2025, showcasing progress in its clinical programs alongside strategic financial maneuvers.

The company's pre|CISION platform continues to be a focal point, with encouraging initial clinical activity observed in the Phase 1b expansion cohorts of the faridoxorubicin (FAP-Dox, AVA6000) program.

The clinical pipeline remains a key driver for Avacta. FAP-EXd (AVA6103) is on track to dose its first patient in Q1 2026, marking another milestone in the company's development efforts.

Data from faridoxorubicin and FAP-EXd, along with translational work in FAP pre|CISION programs, was presented at the American Association of Cancer Research (AACR) Annual Meeting in April 2025.

Avacta is also slated to present final Phase 1a dose escalation data for faridoxorubicin at ESMO 2025 in Berlin, including longer-term cardiac safety and updated efficacy data.

Financially, Avacta reported cash and cash-equivalent balances of £12.65 million as of June 30, 2025. This compares to £28.56 million on June 30, 2024, and £12.87 million at the end of 2024.

The company's cash outflow from operations and working capital movements amounted to £12.14 million during the first half of 2025. However, investing activities generated a cash inflow of £8.77 million, primarily from the sale of Launch Diagnostics.

A significant financial development was the renegotiation of the Heights Convertible Bond terms and the raising of £6.5 million (gross) to fund two quarterly cash payments on the Bond.

Year-to-date bond settlement totaled £5.1 million, reducing the bond balance to £25.5 million as of June 30, 2025, and further to £22.95 million by September 30, 2025. This restructuring provides Avacta with greater financial flexibility as it advances its clinical programs.

CEO Christina Coughlin, MD, PhD, stated, “We have continued to make strong progress with our R&D pipeline, seeing a number of advances in our clinical programs. Notably the activity we are seeing in the faridoxorubicin Phase 1b trial has further increased our confidence in the value and utility of the pre|CISION platform.”

She added that raising £6.5 million to fund bond payments and renegotiating the bond terms reflect the progress and growing confidence in Avacta's R&D pipeline.

Avacta anticipates multiple pipeline updates in the final quarter of 2025, including data from the first expansion cohort (salivary gland cancer) in the faridoxorubicin program. The company's ability to deliver on these updates will be crucial for maintaining investor confidence and driving future growth.