Pre-close trading update

RNS Number : 7053K

Avacta Group PLC

24 August 2012

 



Press release

24 August 2012

Avacta Group plc

("Avacta" or "the Group")

Pre-close trading update

Avacta Group plc (AIM:AVCT), a leading healthcare technology, reagents and consumables company providing proprietary analytical and diagnostics solutions to the life sciences/healthcare sector, today provides the following trading update for the year ended 31 July 2012.

Trading update

The Group is pleased to announce that trading is in line with expectations. Year on year revenues have grown significantly and the year-end balance sheet remains strong.

·	50% year on year increase in Optim sales
·	Optim margin improvement programme well underway with pre-production units in testing
·	Early stage indicators of Optim consumables revenue are encouraging
·	Strengthening partnership with Pall Life Sciences extended to include South East Asia
·	Expansion of AX.1 test menu underway whilst volume production of consumable is set up
·	Development of Affimer affinity reagent platform progressing well

Avacta Analytical

Sales of Optim units have been positive with growth of over 50%. The programme to improve margins of the Optim unit is nearing completion, with pre-production units in testing. The early stage indicators of Optim consumables revenue are encouraging, and this growth is expected to continue as the installed Optim end-user base increases.  

The Group has extended its already strong partnership with Pall Life Sciences into South East Asia. The Group now has five commercial partnerships selling Optim, covering key global territories including US, Europe, China, Japan, and South East Asia.

In the first full year of working, the Group has invested significant efforts into training and support of its partners and has addressed logistical challenges that have arisen. The Group now anticipates realising the benefits of this investment in a more streamlined infrastructure and sales process as these agreements progress.  

Avacta continues to explore opportunities and expansion into further territories and will update the market accordingly.

Avacta Animal Health

Getting first units of AX.1 into the hands of vets has slipped into the next financial year (ending 31 July 2013). Nevertheless, the Group has taken the opportunity to expand the test menu, and is making good progress on five more tests to add to the canine allergy pre-screen. This pre-screen performs very well in predicting the outcome of the Group's Sensitest® environmental allergy laboratory test and is ready to launch with AX.1. It is not possible to accurately forecast when each test will be ready to add to the menu but the Company has identified at least 20 tests to develop and will update the market regularly on progress regarding these.

The Group is pleased to report that its exclusive agreement with IDEXX Laboratories, to supply reagents for high throughput laboratory testing for C-reactive protein in dogs, is progressing well. The validation of a second acute phase protein test kit for mammalian haptoglobin is close to completion.

Affinity Reagents

Following the acquisition of Aptuscan Limited during January 2012, the Board is pleased with the progress in development of the Affimer affinity reagents. 

The Group has recruited a product development team that has set up robotic protein production facilities capable of producing 100,000+ Affimers per year. This automated production facility is already operational and allows the Group to produce the number of Affimers needed to support its first microarray product. 

Whilst the reagents are being manufactured, the microarray printing facilities are being commissioned and the Group is on plan in all respects. Most satisfying has been the positive response from potential customers regarding the first microarray product vision. The Company's target is to produce its first microarray for validation with partners within the current financial year ending 31 July 2013.

Date of Preliminary Results

The Group expects to release its Preliminary Results on 30 October 2012, along with a further trading update at that time.

-Ends-

For further information please contact:

Avacta Group plc Alastair Smith, Chief Executive Officer Tim Sykes, Chief Financial Officer	Tel:  [phone] www.avacta.com
Panmure Gordon (UK) Limited     Andrew Burnett/ Fred Walsh Charles Leigh-Pemberton/Grishma Patel	Tel:  [phone] www.panmure.com
Media Enquiries Abchurch Communications Sarah Hollins/Adam Michael/Oliver Hibberd	Tel: [phone] www.abchurch-group.com

Notes to Editors:

Avacta Group plc, is a UK based healthcare technology, reagents and consumables company, providing innovative tools to help reduce the costs of drug development and to improve diagnostics.

Avacta's products address one of the most significant global challenges facing mankind today - the rapidly rising cost of healthcare for a growing and ageing population.

The cost of healthcare is driven by many factors. New drugs are expensive to develop, most don't reach the patient and those that do are often very costly to prescribe. Inadequate, incorrect or slow diagnosis causes delays that lead to longer or less effective courses of treatment resulting in lengthy or repeated hospitalisation.

Avacta is dedicated to developing and providing innovative and practical tools to help drug developers get their products to market quicker and more reliably, and to providing clinicians with rapid and powerful diagnostics to improve patient treatment, helping to reduce the cost of healthcare worldwide.

Avacta joined AIM in August 2006 and is based in Wetherby, England.

For further information visit www.avacta.com

 

END

 

 

TSTPJMFTMBATBLT