1st Aug 2014 08:22
LONDON (Alliance News) - Avacta Group PLC shares dropped sharply on Friday after it said its in-clinic diagnostic device Sensipod has been further delayed and the performance of its Optim product in North American was below expectations.
Shares in the life sciences firm were down 12.4% to 0.92 pence in early trade Friday, putting it among the top five fallers on AIM.
Avacta said revenue for the year to July 31 was up 18% to GBP3.2 million, from GBP2.7 million a year earlier, and said earnings before interest, tax, depreciation and amortisation is expected to be in line with market expectations.
However, despite posting a 7% rise in revenue for its reference laboratory services and diagnostic kits business, it said progress on the Sensipod device has been further delayed. The firm said the development of new assays for Sensipod has shown the production of the immuno-capture surface, which binds the analyte from the sample for detection, is introducing variability to test results which the company believes is not acceptable. Avacta is therefore working on improving the method of preparing the capture surface.
Sales of Optim, the firm's protein stability analysis tool, were in line with expectations in Europe and Japan but underperformed in its key North American market. Owing to the problems, Avacta's Avacta Analytical unit has altered its strategy in the market, with its current commercial partner becoming a non-exclusive distributor. It warned the change in strategy is likely to further slow sales in North America.
Elsewhere, the firm said the implementation of its expansion plan for Affirmers, engineered alternatives to antibodies designed to address many of the performance issues currently experienced with antibodies in developing new cancer treatments, was on track and the launch of its Affirmer catalogue is set for September.
In June, Avacta said it had secured a funding award from the UK's Technology Strategy Board to support it in developing affirmer technology as a potential way of helping develop new cancer treatments.
During the year, the firm established several commercial partnerships, including a license agreement with Blueberry Therapeutics Ltd, a commercial deal with Ubiq Bio NV and a Japanese distribution agreement with Cosmo Bio.
By Sam Unsted; [email protected]; @SamUAtAlliance
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