Avacta and LG Chem Life Sciences Expand Partnership
Product News Aug 18, 2020
Avacta Group plc 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 Avacta’s Affimer XT™ serum half-life extension system.
In December 2018, Avacta and LG Chem entered into a multi-target therapeutics development agreement to develop Affimer therapeutics in several disease areas potentially worth over $300m to Avacta. The companies have now agreed to expand this drug development partnership to include Avacta’s Affimer XT 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 preclinical milestones and longer-term clinical development milestones totaling $98.5m for two therapeutics to be developed using the Affimer XT technology. Under the terms of the extended agreement, LG Chem has the exclusive rights to develop and commercialize, on a worldwide basis, Avacta’s Affimer PD-L1 inhibitor with Affimer XT serum half-life extension.
The expanded partnership also provides LG Chem with rights to develop and commercialize 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.
In addition, under the agreement Avacta will earn royalties on all future Affimer XT product sales by LG Chem.