(Alliance News) - Avacta Group PLC on Tuesday announced the expansion of its agreement with LG Chem Life Sciences, the Life Sciences division of South Korean LG Group, to include Avacta's Affimer XT technology.
The expansion will include new programs incorporating Avacta's Affimer XT serum half-life extension system, which can be used to control the time a drug spends in the circulation.
The original 2018 agreement was to develop Affimer therapeutics in several disease areas potentially worth USD300 million to Avacta, the company said.
The expansion includes an undisclosed additional upfront payment, near-term milestones and longer-term clinical development milestones totaling USD98.5 million for two therapeutics to be developed using the Affimer XT technology.
LG Chem now has the exclusive rights to develop and commercialise Avacta's Affimer PD-L1 inhibitor with Affimer XT serum half-life extension. The agreement will also see LG Chem have the rights to develop and commercialise other Affimer and non-Affimer biotherapeutics combined with its Affimer XT.
Avacta could earn up to USD55 million in milestone payments for each of these new products.
Avacta Chief Executive Alastair Smith said: "I am delighted with this expansion to the agreement with LG Chem, with whom we have developed a strong collaborative partnership. 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."
Avacta shares were up 2.8% at 149.00 pence each on Tuesday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Avacta Group (AVCT)