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Avacta Group

  • BY: Andrew Hore |
  • POSTED: 07/08/2009 |

Avacta Group says that it has received a strong positive response from initial marketing of its Optim bench top instrument.

Optim can analyse a range of things using very small biological samples as small as 1 microlitre. This can help pharma companies choose to concentrate on the best potential drugs.

Avacta is confident that it has enough sales targets to meet sales expectations for Optim. Daniel Stewart forecasts that 30 units will be sold in 2009-10. The sales lead time could be up to six months so it is difficult to judge how many will be sold.

Selling thirty Optim machines could produce revenues of £1.5m plus, while servicing and consumables could produce annualised revenues of £225,000. That could provide a strong boost for revenues. Daniel Stewart expects revenues to more than treble to £4.3m in the year to July 2010. That would help Avacta make a small profit.

Biopharmaceuticals account for more than one-third of drugs in development and the market is expected to be worth $100bn in 2010. These biopharmaceuticals are based on proteins and DNA. The average cost of developing a biopharmaceutical is $1.2bn according to the Tufts Centre for the Study of Drug Development. More than four-fifths of these drugs in development fail. The faster these failures can be identified the less money will be spent on them and the more time spent on the better target drugs.

YorkTest Veterinary Services, which was acquired earlier this year, has increased year-on-year revenues by 14%. A rapid diagnostic product, Midas, should be launched before the end of 2009.

Avacta is expected to lose £1.8m on revenues of £1.2m in the year to July 2009.

Shares in Avacta rose 0.125p to 1.625p each, which values the company at £18.7m. 

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