Thanks a billion as LG Chem broadens deal with Avacta
Avacta Group could earn anything from $1/2bn to $1bn from an extended partnership with LG Chem Life Science, the Massachusetts-based subsidiary of the South Korean LG Group.
The windfall stems from additional drug development programmes utilising Avacta’s Affimer® XT technology.
The foundations were laid in December 2018 when the companies agreed to develop Affimer® therapeutics in several disease areas potentially worth over $300m to Avacta.
Now the drug development partnership is being extended to include Avacta’s Affimer XTTM technology, which can be used to control the time a drug spends in the circulation.
The expansion of the partnership includes an undisclosed additional upfront payment, plus near-term pre-clinical milestones and longer-term clinical development milestones totalling $98.5m for two therapeutics to be developed using the Affimer XT technology.
LG Chem has the exclusive rights to develop and commercialise, on a world-wide basis, Avacta’s Affimer PD-L1 inhibitor with Affimer XT serum half-life extension.
The new deal also provides LG Chem with rights to develop and commercialise other Affimer and non-Affimer biotherapeutics combined with Affimer XT half-life extension for a range of indications and Avacta could earn up to $55m in milestone payments for each of these new products.
Avacta, which has operations in Cambridge and Wetherby, will also earn royalties on all future Affimer XT product sales by LG Chem.
Chief executive Dr Alastair Smith said: “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.
“The expansion of our collaboration to develop new therapies for patients with cancer and other diseases is another strong validation of the Affimer technology and its potential as a therapeutic platform to deliver a pipeline of new drugs.”