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A Green Light From China Could Cure a Lacklustre Share Price for this 'Sticky Things' Developer

By Malcolm Stacey | Thursday 11 May 2017

Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Hello Share Takers. It’s ironical to call Avacta (AVCT) one of my favourite shares when it has only made a modest profit for me so far. And it’s taken a long time to do that. But it does seem to me that this medical pioneer is onto something. And a little talk with a couple of its big cheeses at last month’s stunning UK Investor Show strengthened that feeling.

The firm is researching and developing thingies called affimers. These are a substitute for antibodies which are a main defence of our bodies again invading disease. They have lots of potential benefits over antibodies, which I’ve detailed in my previous reviews of this company.

Avacta has just announced that China is allowing affimer patents to be accepted in that country. The news means something because China has a fifth of the antibody therapeutic market. Similar patents have already been issued in the USA, Europe and Japan.

But what exactly are affirmers? I’ve studied the company website and still don’t really know. They seem to be proteins which are sticky and can adhere to some viruses.

The company should prosper by extending its licences to other continents. It will sell licenses and also produce its own drugs to flog in the market place. I suspect only a virologist would be able to understand the mechanics of this research and development. But you may agree with me that it all sounds promising.

However, the share price was fixed around 100p for many months and then suffered decay. The news from China sent the shares up by approaching 6%, but the stock’s performance has been disappointing for a few years now. I already hold enough stock to be comfortable with, this being a penny share. But if I didn’t, I might well be adding to my holding.

The Punter’s Return is open, by the way.

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