The company has entered into a therapeutics development partnership and license agreement with LG Chem Life Sciences to develop Affimer therapeutics in several disease areas.
Under the agreement, Avacta will generate and carry out early-stage optimisation of Affimer drug candidates. The companies will collaborate to progress these candidates through to drug candidate selection, and LG Chem will be responsible for pre-clinical and regulatory studies, clinical development and world-wide marketing of any resulting products.
It includes upfront and near-term milestone payments, plus longer-term clinical development milestones, totalling $180m. Avacta may also receive an additional $130m in option fees and milestone payments if LG elects to exercise its options for additional targets.
Alastair Smith, chief executive of Avacta Group, said:
“This alliance is an exciting opportunity, not only to work with a partner who has first class biologics manufacturing and clinical development capabilities, but who also has a pioneering vision to develop innovative therapies.
“This landmark agreement with LG Chem reflects the substantial progress that we have made in developing the Affimer technology as a therapeutic platform and I look forward to updating the market on future progress and other partnerships.”
The Affimer technology is Avacta’s proprietary alternative to antibodies and has applications in the life sciences for drug development, diagnostics and research tools.
Avacta is a portfolio company of IP Group.
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