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Medical testing firm Avacta confident despite revenue drop
MEDICAL testing business Avacta says it will return to growth next year after reporting falls in revenue in its latest financial results.
The business, which was set up in York Science Park and is now based at Thorp Arch, near Wetherby, provides equipment, technology and processes aimed at reducing the cost of human and animal healthcare.
Reporting a fall in revenue to £2.7 million, from £3.13 million the previous year, the firm said it had suffered from slow sales in the first half of the year of its product Optim2.
Optim enables biopharmaceutical companies to analyse small amounts of drugs in development to identify potential problems at an early stage.
Optim sales are reported as part of Avacta Analytical, which makes up the Avacta Group alongside Avacta Animal Health and Avacta Life Sciences.
Within the Avacta Animal Health division, revenue from the Group’s veterinary diagnostics service and kits-based business grew slightly to £1.5 million, from £1.49 million in 2012.
For the year ended July 31 2013 Avacta reported a pre-tax loss of £1.85m, a slight increase from a £1.6m loss in 2012.
However, bosses say recent developments in the company mean they are expecting to report growth in their next set of figures.
Since the last year end, Animal Health’s in-clinic blood-testing system Sensipod has now had its first shipment to veterinary practices in the UK, with plans to launch more tests for the product over the coming year.
Also Life Sciences’ Affimers products, which is an engineered alternative to antibodies, won its first licence deal meaning they will now be used in the development of new therapies for the treatment of drug-resistant bacterial infection.
Alastair Smith, chief executive of Avacta Group, said: “Our recently re-engineered Optim2 has been well received by the market which bodes well for the coming financial year.
“We will also see the first revenues from our Sensipod product as they are sold to veterinary practices in the UK.
“We have already seen a good level of interest and expect this to accelerate as we expand the menu of diagnostic tests over the coming months and years.
“Good progress has been made with our Life Sciences business and we remain confident that our Affimer- based products will generate revenues in calendar year 2014.
“I am very excited about the prospects for the business and look forward to reporting on growth in the forthcoming financial year.”
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