Avacta's Affimers are not the company's only revenue-generating asset, but they are the company's most exciting. Avacta also runs an Animal Health business that reported revenues of £0.73m for the six months to 31 January 2015.
But it's Avacta's Affimer business that's really set to generate growth over the next few years. Over the past twelve months, the businesses momentum has really started to build. A number of deals have been signed with other biotechs and Avacta has doubled the number of Affimer products it has on offer for sale.
Avacta is focused on providing Affimers to address gaps in the antibody. These gaps have been created by poor existing antibody performance. And the size of Avacta's potential market is huge.
It's believed that the global antibodies market was worth around $60bn during 2012. The market has been growing at a rate of around 15% per annum since and is expected to continue to grow at this rate until 2018.
So by 2018 Avacta could be trying to take on a $150bn market with its Affimer products. Even if the company manages to grab a 0.01% share of this market, group revenue could exceed $1.5bn.
Right now, Avacta is focused on the cancer-fighting death-ligand 1 (PD-L1) as its initial target of interest.
Management believes that this product, being tested by a number of international pharma groups, could be greatly improved by the use of Affimer products. Sales from this one treatment alone could top $35bn per annum at its peak.
I think this deal shows Affirmers have a bright future and I hope start to replace antibodies as the research tool of choice. Antibodies unreliable conduit for research but still dominate a market worth $50 billion. I like the comment tens of millions $ potential from this deal alone. And to think I was starting to loose the faith.
18 May 2015 Avacta Group plc ("Avacta" or "the Group")
Therapeutic licensing partnership with Moderna Therapeutics, Inc.
Avacta Group plc (AIM: AVCT), the global provider of proprietary diagnostic tools, consumables and reagents for life sciences, announces that Avacta Life Sciences has entered into a collaboration, licensing and option agreement with Moderna Therapeutics, Inc. ('Moderna').
Under the terms of the agreement, Moderna will make an upfront payment of $500,000 which provides Moderna exclusive access to Affimers against certain targets which may be extended to include additional targets by a further payment. Moderna will also make certain payments to Avacta for research services to deliver pre-clinical development milestones.
Moderna has the option to enter into exclusive license agreements for selected therapeutic Affimer candidates for clinical development and in each case Avacta will be entitled to milestone payments. The total value of these payments could reach several tens of millions of dollars. Avacta is also entitled to royalties in connection with future product sales.
Alastair Smith, Avacta Group Chief Executive commented: "This agreement represents a significant opportunity for Avacta with tangible, near term revenues from upfront payments and research services, with additional milestone payments and royalties on future sales of therapeutics. It is a transformational deal for Avacta and Affimers and I am absolutely delighted to be working with Moderna, a leader in this exciting new field of mRNA therapeutics.
"The collaboration with Moderna is an important validation of the Affimer technology, highlighting the potential for Affimers to become a real alternative to antibodies. I have no doubt that this early adoption of Affimers in the therapeutic field will act as a catalyst for others and it represents a step change in the valuation of the Affimer technology."
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