Avacta H1 Loss Widens As AVA6103 Advances Toward 2027 Data

(RTTNews) - Avacta Group Plc. (AVCT.L), a clinical-stage life sciences company, reported a wider loss before tax for the first half of 2026, compared to the prior year.

The company has provided several clinical highlights on its lead programs.

Company Profile

Avacta is developing pre|CISION peptide drug conjugates or PDCs designed to release potent cancer payloads selectively in tumors using fibroblast activation protein or FAP. Its lead Next Generation program AVA6103, is a FAP-enabled controlled-release version of Exatecan being evaluated across several solid tumors.

First-Half Financial Highlights

Loss before tax increased to £18.85 million from £16.87 million a year earlier. The wider loss was primarily driven by higher finance charges related to the company's convertible bond which included £3.46 million of non-cash interest expense, an £0.87 million charge from revaluation of the bond derivative, and an £0.82 million loss from revisions to expected future cash flows.

Loss for the period widened to £19.02 million from £17.73 million in the first half of 2025. On a per share basis, loss was 4.23 pence, versus 4.65 pence a year earlier.

Adjusted EBITDA loss was £12.58 million, compared with adj. EBITDA loss of £11.61 million in the prior-year period, reflecting increased research spending as Avacta advanced its pre|CISION programs.

Revenue from continuing operations was £0.06 million, unchanged from the first half of 2025.

Cash and cash equivalents totaled £20.27 million on June 30, 2026.

However, cash had declined to £10.59 million by August 31, while the company said its existing committed expenses provide a runway into early first quarter of 2027.

Clinical Highlights

Avacta reported clinical proof of mechanism for AVA6103 in the Phase 1 FOCUS-01 trial. The program showed a clean safety profile through the first three dose levels. Clinical pharmacokinetic data also aligned with pre-clinical modeling, with controlled release of exatecan evident for days after dosing.

The FDA has agreed on certain pivotal trial elements and the regulatory path forward following an end-of-Phase 1 meeting.

Avacta expects initial efficacy data from FOCUS-01 in the first half of 2027, including clinical tumor biopsy data intended to assess whether AVA6103 is retained in the tumor as a drug reservoir.

The company also plans to present updated Faridoxorubicin (AVA6000) data at the ESMO Congress in October and expects to select payloads and a clinical candidate for its AVA6207 dual-payload program in the fourth quarter of 2026.

Outlook

Avacta said its near-term catalysts include the FOCUS-01 trial presentation and updated AVA6103 pre-clinical data, AVA6000 data at ESMO, and payload and candidate selection for AVA6207 later this year.

The company also announced plans for another capital raise to strengthen its balance sheet and support these development programs.

Stock Quote

Avacta shares are down 0.69% at GBp 72 on the London Stock Exchange.