Avacta Group Plc · LSE:AVCT
Avacta — FY2012 Earnings Presentation
16 slides from Avacta's earnings presentation, Oct 23, 2012
Slide 1: Preliminary Results Presentation
Avacta Group plc ! Innovation for global health! Preliminary Results Presentation! 23rd October 2012!
Slide 2: Executive Summary
Executive Summary A strong base for future growth in a difficult climate! • Total Group revenues increased by 28% to £3.13m (2011: £2.45m)! • Loss per share maintained to 0.04p (2011: 0.04p)! • Balance sheet strong with £4.2m cash! • Revenues in Avacta Analytical increased 59% YOY! • 50% year on yea
Slide 3: Innovation for Global Health
Innovation for Global Health Tools to help drive down the cost of healthcare! Our purpose is to drive down the cost of healthcare around the world by providing better tools to help reduce the cost of drug development and to improve diagnostics! High Pressure from insurers! Wrong/ cost of delayed dru
Slide 4: Market Strategy
Market Strategy Large healthcare markets with high growth potential! Our market strategy is to build from largely unregulated markets towards the more highly regulated, but higher value, human diagnostics market! Biopharmaceuticals! Veterinary Health! Human Health! ! ! ! • $202bn market by 2013! • V
Slide 5: From Discovery to Diagnostics
From Discovery to Diagnostics Technology, consumables and reagents for the life scientists! ! Drug / Biomarker Pre-clinical Clinical Trials! Drug Diagnostics! Discovery! R&D! Manufacturing! ! Tools for Drug Development! In-clinic Diagnostics! Proprietary Reagents, Kits and Microarrays for Discovery
Slide 6: Preliminary Results for the Period Ended July 2012
Avacta Group plc Preliminary Results for the Period Ended 31st July 2012! FY12! FY11! £m! £m! Revenues! 3.13! 2.45! Gross profit! 1.51! 1.18! Gross margin! 48.0%! 48.2%! Overhead! (3.06)! (2.10)! Underlying operating loss ! (1.55)! (0.92)! Net non-cash items! (0.09)! (0.20)! Reported operating loss!
Slide 7: Balance Sheet and Cash Flow at 31st July 12
Avacta Group plc Balance Sheet and Cash Flow at 31st July 2012! Cash flow extracts! FY12! FY11! £m! £m! Operating cash flow from operations! (0.75)! (1.11)! Interest and R&D tax! 0.04! 0.52! Investing activities! (1.76)! (1.02)! Financing activities! 4.92! 1.95! Net cash flow! 2.42! 0.34! Balance sh
Slide 8: Progress in the Period: Tools for drug developers
Progress in the Period Tools for drug developers! Optim 1 00 • 59% increase in revenues YOY! formula 0 allowed more tions to and uns be stud uit ied • 50% sales growth YOY (21 Optim units)! be disca able formulation – rded – e s develop arly on in to me n t o f th e de-riskin SXN • Half of these int
Slide 9: Progress in the Period: Veterinary diagnostics and test kits
Progress in the Period Veterinary diagnostics and test kits! • Allergy testing! – 23% increase in revenues in core business! – Export market showing 37% growth! – UK testing market flat – significant recessionary effects! – Significant margin improvement due to in-house manufacture of kits! • Acute
Slide 10: Progress in the Period: AX.1 in veterinary clinics
Progress in the Period AX.1 in veterinary clinics in planned field tests! • Clinical validation of first test thoroughly completed! – Canine allergy pre-screen predicts positive outcome from full lab test! • Assay development team expanded; 7 further tests now in development ! • Supply issues with c
Slide 11: Avacta's Antibody Replacement Technology
Avacta’s Antibody Replacement Technology Connecting Avacta’s markets from discovery to diagnostics! • Antibodies are the major class of affinity The Affimer Technology! reagents with multiple markets worth over $300bn! binding&surface& • Avacta acquired an antibody replacement platform (“Affimers”)
Slide 12: Protein Microarrays
Protein Microarrays Product concept and customer workflow! 20k – 100k different Affimers per array Healthy sample applied Diseased sample applied an printed onto a standard glass slide! to an array, incubated, identical array, incubated, then washed off! then washed off! Business Model! The differen
Slide 13: The Urgent Need for Companion Diagnostics
The Urgent Need for Companion Diagnostics Different people respond differently to a given drug treatment! • In many human diseases drugs only Figure&2.&One&Size&Does&Not&Fit&All& work for 50% of patients or fewer! PERCENTAGE&OF&THE&PATIENT&POPULATION&FOR&WHICH& • This results in costly drug A&PARTIC
Slide 14: The Drug Developers' Perspective
The Drug Developers’ Perspective New drugs will require development of a companion diagnostic! • The FDA and other regulatory bodies are going to require new drugs to have companion diagnostics to identify those patients who will benefit from the treatment! • The guidance is that the same diagnostic
Slide 15: Progress in the Period: Affimers and microarrays
Progress in the Period Affimers and microarrays! • Avacta acquired huge libraries of Affimers to screen for specific applications and the IPR that protects the fundamental concept! • These libraries are now functioning (with some improvements desirable) and can be screened in Avacta ! 25,000& • The
Slide 16: Outlook
Outlook Underlying good progress but cautious about H1! Drug development and veterinary healthcare markets remain subdued and conditions are challenging! ! Expecting good commercial and development progress to continue in FY2013 and to support stronger growth in FY2014! ! • Optim ! – Transition from