Avacta’s investment case centres on how its pre|CISION-enabled PDC (peptide-drug conjugate) platform can widen the therapeutic window of potent oncology drugs, improve efficacy, and reduce toxicities. Faridoxorubicin (FAP-Dox), a Gen One compound, has proven the concept, but the real value, in our view, lies in the Gen Two and Gen Three opportunities. AVA6103 (FAP-EXd), the lead Gen Two programme, has started Phase I studies with the first clinical data by end-2026. FAP-EXd is a sustained release PDC of proven Topo I inhibitor, exatecan, whose utility is hampered by its toxicity. Successful proof-of-concept for FAP-EXd would open up sizeable clinical indications and act as a template for other currently suboptimal compounds. The lead Gen Three (dual payload) programme is progressing well through preclinical studies: the identity of the two components set to be revealed by end-2026. The news flow over the next 12 months should establish the utility, positioning, and value of the pre|CISION platform. Our valuation is £475m/$608m, or 101p/share.
