finnCap Research Company Notes - 12 December 2018
Dec 12, 2018 / News
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Sector: Life Sciences
Avacta (AVCT) : Corp
CMO with the right pedigree
Key data
- Share price (p) 29.0
- Target price (p) 120.0
- Market cap (£m) 33.5
- Enterprise value (£m) 28.3
Avacta announced the appointment of Dr Jose Saro as its Chief Medical Officer. He brings highly relevant experience to lead Avacta’s therapeutic development strategy and drive the in-house programmes into the clinic, having worked previously at some of the world’s leading oncology companies, some of which have pioneered immuno-oncology approaches to treating cancers. This appointment was one of the milestones slated by Avacta for 2018 and follows the $180m licensing partnership with LG Chem announced this week. Given his experience in highly relevant fields of drug development, his input and guidance will be crucial for Avacta as it takes its lead compound (bispecific PD-L1/LAG-3 Affimer) towards human Phase I clinical trials, which is targeted for 2020.
Mark Brewer | mbrewer@finncap.com
Sector: Technology & Telecoms
Netcall (NET) : Corp
AGM statement and trading update
Key data
- Share price (p) 35.5
- Target price (p) 90.0
- Market cap (£m) 50.8
- Enterprise value (£m) 51.5
Netcall has reported an AGM statement for the year to June 2018, reiterating the optimism in the Low Code platform, which has continued to contribute to the strong trading and significant growth in bookings since June. Multi-year low code contracts have been secured with existing and new customers, including first sales to NHS and Housing Association organisations, further justifying the accelerated investment in the low code offering, which has begun as planned. Timing of product sales and the development of the recurring cloud-based revenue will make the business more 2H weighted than historically experienced, with FY19 expectations unchanged. Gross cash of £6.3m provides a solid balance sheet, and we look forward to the January interim trading for further detail of the opportunities for low code growth. Target 90p reiterated.
Andrew Darley | adarley@finncap.com