Avacta expands collaboration deal with LG Chem
Avacta Group
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09:24 25/04/24
Avacta Group announced the expansion of its existing multi-target collaboration and development agreement with LG Chem Life Sciences on Tuesday, to include new programmes incorporating its ‘Affimer XT’ serum half-life extension system.
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The AIM-traded biotherapeutics company entered into a multi-target therapeutics development agreement with LG Chem in December 2018, to develop Affimer therapeutics in several disease areas, potentially worth more than $300m to Avacta.
It said on Tuesday that the parties had agreed to expand the drug development partnership to include Avacta's Affimer XT technology, which could be used to control the time a drug spends in the circulation.
The board said the expansion of the partnership included an undisclosed additional upfront payment, plus near-term pre-clinical milestones and longer-term clinical development milestones totaling $98.5m for two therapeutics to be developed using the technology.
Under the terms of the extended agreement, LG Chem had the exclusive rights to develop and commercialise, on a world-wide basis, Avacta's ‘Affimer PD-L1’ inhibitor with Affimer XT serum half-life extension.
The expanded partnership also provided LG Chem with rights to develop and commercialise other Affimer and non-Affimer biotherapeutics combined with Affimer XT half-life extension for a range of indications, with Avacta able to earn up to $55m in milestone payments for each of those new products.
In addition, under the agreement Avacta would earn royalties on all future Affimer XT product sales by LG Chem.
“I am delighted with this expansion to the agreement with LG Chem, with whom we have developed a strong collaborative partnership,” said chief executive officer Dr Alastair Smith.
“LG Chem is a world-class drug development partner with excellent biologics manufacturing and clinical development capabilities and a pioneering vision to develop innovative therapies.
“The expansion of our collaboration to develop new therapies for patients with cancer and other diseases is another strong validation of the Affimer technology and its potential as a therapeutic platform to deliver a pipeline of new drugs.”
At 1346 BST, shares in Avacta Group were up 0.66% at 145.95p.