Avacta Shares Surged 8.31% on Science Day News. Here’s Why.

The Avacta Group Plc (LON: AVCT) share price surged 8.31% after announcing that it would host a Science Day for City analysts and fund managers on 23rd February 2023. 

The life sciences firm intends to discuss recent progress within its Therapeutics Division and to hear from some key opinion leaders in oncology.

Investors cheered the news as the company will update participants on the ongoing preclinical programmes and the progress in its ALS-6000-101 phase 1a clinical trial of AVA6000.

AVA6000 is Avacta's lead pre|CISION^TM tumour-targeted chemotherapy treatment, a modified form of doxorubicin, a chemotherapy treatment.

Avacta also revealed that it would issue an update regarding the clinical study in January before the science day conference. 

Looking at the Avacta share price below, we can see that the shares have been trading in a wide sideways trading range since April 2022. The shares are currently trading at the bottom of the range, which indicates that they could rally higher. 

However, nothing is guaranteed in the markets, and we could easily see the shares reverse course and break out of the trading range to the downside. 

Regular readers will remember that Avacta raised about £64 million via convertible bonds and a share placement in early November; hence, it is well capitalised to continue advancing its pre-clinical and clinical-stage drug treatments. 

Investor interest in Avacta shares remains high as Forbes ranked the company’s shares among the top ten most bought stocks in the United Kingdom in November. 

I would bet on the shares rallying higher to the top of the trading range but would have a stop-loss below the lower bound of the trading range. 

*This is not investment advice. 

The Avacta share price chart.

The Avacta share price surged 8.31% to trade at 112.75p, rising from Friday’s closing price of 104.1p.