Avacta launches £10m equity raise to support oncology pipeline development

Avacta Group plc (LSE:AVCT) has announced plans to raise approximately £10 million through a discounted equity placing and subscription involving around 15.9 million new shares priced at 63 pence each. Zeus Capital is acting as sole bookrunner for the transaction. The company expects the net proceeds to fund research and development activities as well as general working capital, extending its cash runway into early Q1 2027 and beyond the anticipated Phase 1a data readout for AVA6103.

The capital raise is intended to support continued clinical progress across Avacta’s oncology pipeline. This includes Phase 1b expansion cohorts for faridoxorubicin (AVA6000) across multiple cancer indications and the planned initiation of dosing for AVA6103, a pre|CISION-based exatecan peptide drug conjugate. Management has indicated it intends to retain full ownership of AVA6103 at least until the initial Phase 1a data expected in late 2026. Participation by company directors in the subscription is seen as a signal of internal confidence and positions the group for potential future partnership discussions around its lead assets and next-generation candidate AVA6207.

From an outlook perspective, Avacta continues to face financial pressures, reflected in weak profitability and bearish technical indicators. Although the company is making progress with its clinical programmes, funding constraints and the absence of major commercial partnerships remain key risks. Valuation metrics also appear challenging given negative earnings and the lack of a dividend.

More about Avacta Group plc

Avacta Group plc is a clinical-stage biopharmaceutical and life sciences company developing cancer therapies using its proprietary pre|CISION tumour-activated drug delivery platform. The technology supports the development of peptide drug conjugates designed to deliver highly potent cancer treatments directly within the tumour microenvironment, aiming to improve effectiveness while reducing systemic toxicity compared with conventional antibody drug conjugates.