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LONDON (Alliance News) - IP Group PLC on Monday said its portfolio company Avacta Group PLC signed a development & license deal with LG Chem Life Sciences.
IP Group currently holds a 17.1% stake in biotechnology company Avacta while IP Venture Fund holds 1.0%.
The FTSE 250-listed business developer said the contract is for Affimer therapeutics and is worth up to USD180 million across upfront, near-term payments and development milestones.
The Affimer technology is Avacta's proprietary alternative to antibodies with wide applications in the life sciences for drug development, diagnostics and research tools.
IP Group noted that the agreement may result in an additional USD130 million in option fees and milestone payments should LG Chem elect to exercise their options for additional targets.
Avacta also will receive royalties on any future product sales and LG Chem will cover Avacta's costs of research & development associated with the collaboration.
Avacta will generate and carry out early-stage optimisation of Affimer drug candidates against multiple undisclosed targets. In turn, LG Chem will be responsible for pre-clinical and regulatory studies, clinical development and world-wide marketing of any resulting products.
"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," said Avacta Chief Executive Alastair Smith.
IP Group shares were trading 2.2% lower on Monday at 105.20 pence each. Avacta group shares were up 25% at 28.95p each, having set a three-month high of 37.00p.
