Avacta Group Share News (AVCT)

(Sharecast News) - Biotherapeutics developer Avacta Group updated the market on the 'Affimer' therapeutics development partnership and license agreement with LG Chem Life Sciences, part of the South Korean LG Group, to develop Affimer therapeutics in several disease areas on Wednesday.
The AIM-traded firm said it has successfully generated a large number of Affimer proteins that bind to the first drug target nominated by LG Chem.

It said those candidate Affimer molecules were now being optimised by Avacta, for LG Chem to then carry out pre-clinical development, successful completion of which would trigger the next substantial milestone payment to Avacta.

LG Chem had now expanded the collaboration, the company added, by nominating the second and third drug targets, with Avacta beginning the discovery programmes for Affimer binders to those new targets.

Each of the programmes also had the potential for further milestone payments.

The company signed the multi-target therapeutics development agreement with LG Chem in December 2018, which provided for upfront and near-term development milestone payments, as well as longer-term clinical development milestones.

Avacta said it would also receive royalties on any future product sales, while LG Chem was covering all Avacta's costs of research and development associated with the collaboration.

"I am very pleased with the excellent progress made in the first programme with LG Chem," said chief executive officer Alastair Smith.

"Not only is this an important validation of the Affimer platform, confirming that it can be used to quickly generate potential candidate drug molecules for development, but it also means that we have taken an important step towards receiving the next substantial milestone payment under our collaboration agreement.

"Our partnership with LG Chem goes from strength to strength with their decision to nominate the next two drug targets."

At 1148 GMT, shares in Avacta Group were up 11.3% at 19.7p.