(Alliance News) - Avacta Group PLC on Thursday said it has entered into a collaboration and option agreement with ADC Therapeutics SA, a clinical-stage oncology-focused biotechnology company.
Avacta said the agreement is to develop Affimer-drug conjugates combining its Affimer technology with ADC Therapeutics' pyrrolobenzodiazepine-based warhead and linker technologies.
As part of the collaboration, Avacta said it will generate and optimise Affimer binders against three undisclosed cancer targets and provide these to ADC Therapeutics to target its proprietary cytotoxic warheads to the site of the tumour.
In turn, ADC Therapeutics will carry out pre-clinical research & development programmes to evaluate each of the Affimer-drug conjugates with a view to generating clinical candidates.
The commercial agreement between the two companies provides ADC Therapeutics with an option to obtain exclusive licenses to the Affimer proteins for clinical development and commercialisation, Avacta said.
ADC Therapeutics will cover all Avacta's costs during the collaboration, it said.
"We are very excited about the potential of this collaboration to develop breakthrough oncology treatments, and about its considerable commercial value to Avacta," said Avacta Chief Executive Alastair Smith.
He added: "We look forward to working closely with the ADC Therapeutics team to generate new Affimer-drug conjugates and advance these promising cancer treatments into the clinic."
Shares in the AIM-listed biotechnology company were trading 7.9% lower on Thursday at 18.18 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Avacta Group (AVCT)