Avacta has announced the expansion of its existing multi-target collaboration and development agreement with LG Chem Life Sciences (‘LG Chem’), the life sciences division of the South Korean LG Group.
To include new programmes incorporating Affimer XT™ serum half-life extension system.
In a clear reflection of the value Big Pharma places on the Group’s proprietary technology, this new arrangement lifts the potential total value of upfront and near-term development milestones plus option fees due to Avacta from US$310m to as much as US$408.5m, on top of a further undisclosed upfront payment plus additional royalties on all future Affimer XTTM product sales by LG Chem. Similar non-exclusive partnerships already in place with ADC
Therapeutics , Daewoong and Moderna now push this pre-royalty figure to c.US$600m, although the exceptional level of interest in this novel class of biotherapeutics suggests continuing opportunity for growth both through yet further expansion of existing arrangements and/or the signing of new collaborations with other sector majors. While near-term sentiment clearly rests on the Group’s coronavirus-related developments, today’s announcement highlights the long-term value contained in its therapeutic and diagnostic platforms along with its advancing pipeline of in-house drug candidates.
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