RCS-Avacta Group PLC Optim - Second Order

Released: 06/10/2009

com:20091006:RnsF2727A
                                                                                                                       .
RNS Number : 2727A  
  
Avacta Group PLC  
  
06 October 2009  
  
Avacta Group plc  
  
Momentum builds for flagship technology -   
  
Optim: huge annual revenues opportunity  
  
Reducing risk and costs for biopharmaceutical developers  
  
Avacta Group plc ("Avacta" or the "Company"), which provides innovative, high 
value technologies and services to the pharmaceutical and diagnostics markets, 
is pleased to announce that, following the very recent announcement of its first 
order from a global biopharmaceutical developer for its recently launched 
flagship product, Optim, a second order from a similar global biopharmaceutical 
company has been received.   
  
This is significant news in that it demonstrates the start of sales momentum and 
Optim's powerful value proposition. Moreover, it indicates the effectiveness of 
Avacta's marketing team which bodes well for the anticipated near term launch of 
MIDAS, a high value, high end bench top instrument for the veterinary and human 
diagnostics sectors.  
  
Costing up to £100k and with a large addressable market encompassing the 
biopharmaceutical sector, parts of the chemical and food industries and the 
academic life sciences research sector, the revenues from Optim and future 
hardware upgrades are potentially huge. Moreover, each unit should deliver an 
attractive recurring revenue stream from consumable sales, annual servicing, 
software updates and support packages.  
  
About Optim:  
  
Optim fills a significant gap in the market providing detailed analysis using 
only very small sample volumes. For the first time this enables drug developers 
to gain vital information about product performance in the early stages of 
product development, when very limited quantities of material are available, 
helping to reduce the risk of later stage failure.   
  
An Optim system can cost up to £100k. However, since Optim uses minute amounts 
of sample and is fully automated, it can deliver results in a fraction of the 
time and at a fraction of the cost of other methods and can therefore yield a 
return on investment for customers in only a few months.  
  
Alastair Smith, Chief Executive, Avacta Group, commented:  
  
"I am extremely pleased to announce our second order for Optim, received very 
shortly following the first which was announced last week. This is a clear 
manifestation of the strong sales pipeline that I reported on and further 
supports our confidence in future sales levels."  
  
"Optim has been received by potential customers enthusiastically as a unique 
tool that will allow them to characterize their drug compounds at an early stage 
of development and provide information that will help reduce the risk of product 
development and ultimately reduce the cost to patients of these new drugs. The 
value proposition to the end user is very compelling."  
  
6 October 2009  
  
Enquiries:  
  
 
  Avacta Group plc                           Tel:  0844 414 0452       
  Alastair Smith, Chief Executive Officer    www.avacta.com            
                                                                       
  Haggie Financial LLP                       Tel: 020 7417 8989        
  Kathy Boate/Nicholas Nelson                Kathy.boate@haggie.co.uk  
                                                                       
  
  
Notes to Editors:  
  
 
About Avacta  
  
Avacta was spun-out from the University of Leeds in 2004 by its current 
management team as a biophysics company, with the aim of combining the 
disciplines of physics and biology to develop innovative technologies and expert 
technical services to address unmet needs in the biopharmaceutical and 
healthcare sectors. Avacta has a core bio-analytical technology development 
programme addressing the needs of the biopharmaceutical sector to fully 
characterise their new products at the earliest stage in their development to 
reduce the risk of late stage failure. High end analytical instruments and 
leading edge contract research services are being provided to the 
biopharmaceutical and healthcare/personal-care materials sectors through the 
Group's biotech support division, Avacta Analytical. High value solutions for 
rapid, point of care diagnostics based on these core bio-analytical 
technologies, with a near term focus on veterinary diagnostics, are being 
delivered through Avacta Animal Health. In the longer term these technologies 
will be transferred into the human clinical diagnostics market. Avacta listed on 
AIM in August 2006.   
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
NRABLBDGLUGGGCU