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Avacta Group

  • BY: Andrew Hore |
  • POSTED: 26/11/2009 |

Diagnostic equipment provider Avacta Group is starting to sell its Optim bench top analyser.

Optim can analyse a range of things using biological samples as small as 1 microlitre. This can help pharma companies choose to concentrate on the best potential drugs. Three Optims have been sold so far but these sales were delayed until after the July year end.

Each Optim sale could generate £75,000 plus around £12,000 a year from servicing and consumables. Avacta hopes to sell 15 Optim’s this year – so there are 12 more to go before reaching that target next July.

Revenues more than doubled from £466,000 to £944,000 last year. The acquisition of the rebranded Avacta Animal Health business was behind most of the growth. The loss increased from £1.57m to £2.84m. That is after £905,000 of non-recurring admin costs relating to the integration of acquisitions.

The all share acquisition of personalised medicine company Curidium Medica in March 2009 was effectively a fundraising for Avacta. Curidium brought with it £2.41m in cash after expenses. The non-recurring admin expenses predominantly relate to former research projects undertaken by Curidium.

Curidium still undertakes contract work and there is potential upside from the work being supported by Takeda Pharmaceutical in Japan. Results of this work should be known within six months and they will determine whether this is worth progressing.

Avacta plans to launch a bench top system for vets early next year. Midas will sell for £3,000 with additional revenues from servicing and consumables. So far, one test – for canine immunity - has been developed but more are in the pipeline.

Net cash was £849,000 at the end of July 2009. Since then £2m has been raised at 1.5p a share.

Daniel Stewart forecasts a loss of £1m this year but a move into profit in 2010-11.

Shares in Avacta fell 0.075p to 1.8p each, which values the company at £23.4m.

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