Listed life sciences firm’s new collaboration with South Korean partner

Wetherby-based life sciences business Avacta Group has agreed to establish a joint venture in South Korea with Daewoong Pharmaceutical Co, a leading Korean pharmaceutical company.

Avacta develops Affimer biotherapeutics and reagents. Affimers are binding proteins, which can be applied to treat illnesses when and where antibodies and aptamers are unable to.

The collaboration and license agreement for the South Korean joint venture is to develop the next generation of cell and gene therapies, incorporating Affimer proteins.

Mesenchymal stem cells (MSCs) are promising agents for the treatment of autoimmune and inflammatory diseases. 

The joint venture will develop a new class of MSCs that are primed to produce Affimer proteins, which are designed to enhance the immune-modulatory effect when administered to patients, by reducing inflammatory and autoimmune responses.

Avacta will develop Affimer proteins which will be transferred to the joint venture to be incorporated into MSCs. 

Avacta’s research and development costs will be fully covered by the joint venture which is funded by Daewoong.

Daewoong will provide the joint venture with access to its proprietary technology for generating allogeneic MSCs from a single donor to treat a large number of patients.

Avacta’s shareholding in the joint venture is 45%.

Dr Alastair Smith, chief executive officer of Avacta Group, said: “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.  

“Within the last six months alone we have seen early stage stem cell companies acquired for significant sums.

“For example, Bayer acquired control of Blue Rock for $600m, valuing the company at close to $1bn; and Vertex acquired start-up Semma Therapeutics, which is developing stem cell therapies for type 1 diabetes, for $950m. 

“This joint venture will have a unique opportunity to generate superior cell therapies for some of the most pressing needs in immune-mediated disease.”

Dr Seng-ho Jeon, CEO of Daewoong Pharmaceutical, said: “Our partnership reinforces the companies’ shared vision of designing the next level of treatment paradigm, and opens up a new horizon in immunotherapeutic strategies.  

“This innovative collaboration will deliver invaluable synergy and lead to new solutions to transform patients’ lives.”