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Why Avacta Shares Have Risen 11.8% in the First Week of 2023

Simon Mugo trader
Updated 6 Jan 2023

The Avacta Group Plc (LON: AVCT) share price has risen 11.8% in the first week of 2023, driven by bullish investor sentiment towards the company. However, opinion about Avacta’s prospects is mixed among analysts and here’s why. 

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The company’s most promising drug candidate is AAV6000, its patented pro-doxorubicin (AVA6000) treatment for cancerous tumours. It is in phase I clinical trials and is set to release the final results from the clinical trial this year.

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AVA6000 is a promising chemotherapy treatment that seeks to improve the absorption and dosage of doxorubicin in cancer patients by eliminating some of its harmful side effects, including damaging healthy tissues around the heart. 

The drug delivered positive safety data early in the phase 1 clinical trial. Avacta is already dosing participants with more than double the typical dosage of doxorubicin at 200mg/m2.

The company’s Affirmer platform is an innovative alternative to antibodies derived from a small human protein. The platform addresses many negative issues associated with antibodies and has a total addressable market of over $100 billion. 

Avacta’s pre|CISION platform is designed to release active chemotherapy selectively in FAP-rich tumour tissues to limit the systemic exposure that causes damage to healthy tissues. It aims to improve powerful anti-cancer treatments’ overall safety and therapeutic potential.

AVA6000 is based on the pre|CISION platform, whose wider applications have a total addressable market expected to reach $56 billion in 2024. The company’s drugs and drug discovery platforms have significant revenue potential.

Therefore, Avacta shares could rally higher upon the release of the AVA6000 final phase 1 clinical data if it is positive. The company has also licensed some drug candidates and technologies to other firms, such as Daewoong Pharma and LG Chem. 

Analysts at Trinity Delta have a price target of 219p on Avacta shares, but some think the target is relatively low if the company can achieve even half its full potential. 

*This is not investment advice. 

Avacta share price.

The Avacta share price has risen 11.83% in the first week of January, driven by positive investor sentiment.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading