(Alliance News) - Avacta Group PLC said Wednesday it has agreed to establish a joint venture in South Korea with pharmaceutical firm Daewoong Pharmaceutical Co Ltd.
Avacta - which develops affimer biotherapeutics and reagents - will hold a 45% stake in the joint venture, that will look to develop a new class of mesenchymal stem cells which will produce affimer proteins.
These type of stem cells are used as agents for the treatment of autoimmune and inflammatory diseases.
Avacta said it will develop these affimer proteins, which will be integrated into the stem cells, while Daewoong will provide access to the technology needed for generating the stem cells from a single donor.
Daewoong will also fully cover the research & development costs for Avacta's development of the proteins.
"Cell and gene therapies are attracting intense clinical and commercial interest. We are very excited to establish this joint venture with Daewoong, one of the top pharmaceutical companies in Korea, to develop the affimer platform in this important therapeutic area. Our vision is to combine our platforms to create the next generation of cell therapies, for which the potential is huge," said Chief Executive Officer Alastair Smith.
Shares in Avacta - which is based in Wetherby - were up 7.4% at 18.80 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Avacta Group (AVCT)