Wetherby-based life sciences company Avacta Group said it would divest its diagnostics division and is looking at a dual listing on NASDAQ to maximize value for shareholders, as it reported a wider loss for the latest six months.

The company is spending heavily on research and development as it trials AVA6000, a chemotherapy drug that can slow or stop the growth of cancer cells by blocking an enzyme, with fewer side effects than established treatments.

Shaun Chilton, Chairman of Avacta Group plc said: “We have commenced a process to divest the Diagnostics Division and have started to receive indicative offers. Our longer-term financing strategy is being formulated and includes a potential dual listing of the Company on NASDAQ, which the Board sees as a key strategic option for the Company.”

Christina Coughlin, MD, PhD, Chief Executive Officer of Avacta Group plc, said: “We are seeing notably positive progress on our drug development candidate AVA6000 with the completion of the Phase 1a trial with no maximum tolerated dose and opening of the RDE expansion.”

“This novel peptide drug conjugate continues to demonstrate a highly favorable tolerability profile and robust preliminary signs of efficacy, with several durable responses, as it moves through clinical development.”

For the six months ending 30 June, the company reported revenue of £11.3 million, down from £11.9 million a year ago, and an adjusted EBITDA loss of £11.1 million, compared with a loss of £7.9 million in the same period a year ago.

Research and development spending rose to £6.7 million from £6 million a year ago. AVA6000 is currently in early stage clinical trials.