N4 Pharma delighted at collaboration extension with AstraZeneca subsidiary

N4 Pharma’s shares jumped by almost 20% on Monday after the company agreed to extend its collaboration agreement with AstraZeneca subsidiary MedImmune.

The two companies have developing techniques for the manufacture of a prototype nanomedicine that uses N4’s Nuvec delivery system which is intended to encourage the production of anti-cancer antigens through the delivery of DNA directly into cells.

Nigel Theobald, chief executive of N4 Pharma, said: "We are delighted that MedImmune is continuing to work with N4 Pharma to evaluate the potential of our Nuvec system. MedImmune is able to provide considerable expertise and resources for this work and their continued support for N4 Pharma and Nuvec is a clear indication of Nuvec's potential as a non-lipid, non-viral vaccine delivery technology and an example of how we can establish separate agreements."

The AIM traded company’s project was funded by an Innovate UK feasibility grant, which is funded through the UK government's £70m industrial strategy challenge fund to speed up the development of new medicines and came to an end on 31 October after a nine month period.

"The grant has allowed us to take a positive step forward with our Nuvec delivery system and we are very grateful for the support provided by Innovate UK and MedImmune," said Theobald.

Now that the grant has expired the two companies aim to draw up an "appropriate collaboration agreement" for co-development of an optimised version of Nuvec.

N4 Pharma’s shares were up 17.12% at 6.50p, while AstraZeneca’s shares were up 2.86% at 5,896.00p at 1646 GMT.