Life sciences firm secures development partnership with South Korean LG Group subsidiary

Life sciences firm Avacta Group has secured a new development partnership and license agreement with LG Chem Life Sciences, part of the South Korean LG Group.

The Wetherby-based firm, which develops Affimer biotherapeutics and reagents, has agreed a multi-target Affimer therapeutics development deal.

This agreement provides for upfront and near-term milestone payments, plus longer-term clinical development milestones totalling $180m. Avacta will also receive royalties on any future product sales and LG Chem will cover Avacta’s costs of research and development associated with the collaboration.

As part of the agreement, Avacta will generate and carry out early-stage optimisation of Affimer drug candidates against multiple undisclosed targets. LG Chem and Avacta will collaborate to progress these candidates through to drug candidate selection, and LG Chem will be responsible for pre-clinical and regulatory studies, clinical development and world-wide marketing of any resulting products.

Alastair Smith, chief executive of Avacta Group, said: “I am delighted to be entering into this therapeutic development partnership with LG Chem which is a strong validation of the potential of the Affimer platform.

“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.

“This landmark agreement with LG Chem reflects the substantial progress that we have made in developing the Affimer technology as a therapeutic platform and I look forward to updating the market on future progress and other partnerships.”

Dr. Jeewoong Son, president of LG Chem Life Sciences, added: “Utilizing Avacta’s Affimer technology – a novel non-antibody protein format overcoming limitations of classical antibody-based therapy – and LG Chem’s biologics capability in development and manufacturing, it will take us to the next level of treatment paradigm and to open up a new horizon in biologics therapeutic strategies.

“I believe, this innovative collaboration will deliver value to patients and will transform patients’ lives.”

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