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LONDON AND PHILADELPHIA - Avacta Therapeutics (AIM: AVCT), a developer of peptide drug conjugates, has entered into an agreement to sell its diagnostic unit, Launch Diagnostics Holdings Limited, to Duomed Belgium NV for £12.9 million in cash. The transaction, expected to close by the end of April 2025, aligns with Avacta’s strategic shift towards becoming a pure-play biotechnology firm.
Launch Diagnostics, Avacta’s largest diagnostics division based in the UK, reported £17.9 million in audited revenues and a profit after tax of £0.38 million for the year ended December 31, 2023. Its unaudited net assets were valued at £13.65 million as of June 30, 2024. The sale proceeds will support Avacta’s research and development, specifically its proprietary pre|CISION® platform.
The divestiture also extends Avacta’s cash runway into the first quarter of 2026, although the company anticipates a non-cash loss for the year ending December 31, 2025, due to the sale. Avacta is also in talks to sell Coris BioConcept SRL, its smaller diagnostics business based in Belgium.
Non-Executive Chairman Shaun Chilton stated that the move to diagnostics had been disappointing but selling Launch Diagnostics was crucial for Avacta’s focus on therapeutics. The sale followed an extensive auction process, allowing the company to concentrate on developing its pre|CISION® technology platform.
In a corporate update, Avacta Therapeutics highlighted progress in its research and development pipeline, management team enhancements, and a strategic partnership with Tempus. Its lead program, AVA6000, has shown promise in clinical trials with reduced toxicities, tumor shrinkage, and targeted delivery of its active payload.
The company’s second program, AVA6103, is preparing for a Phase 1 trial expected to start in early 2026. This pre|CISION®-enabled drug has shown a potential safety profile in preclinical models and could benefit a large patient population.
Avacta is exploring a dual listing on NASDAQ, contingent on clinical data, SEC approval, and market conditions. This strategy remains a key option for the company’s long-term financing of its clinical therapeutics program.
This report is based on a press release statement from Avacta.
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