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Avacta reaches licensing agreement with Glythera after initial study yields positive results
Biotechnology company Avacta Group has successfully concluded its initial study with next-generation antibody drug conjugates developer Glythera, leading to a licensing agreement between the two firms.
While detailed terms of the license between the two had not been made available, it was revealed that Avacta would receive development milestone payments and royalties on sales of an approved drug developed by Glythera.
Initial trials showed that Avacta's Affirmer technology could be combined with Glythera's Permalink conjugation chemistry to provide a "technologically superior drug conjugate platform" that had shorter development times, simpler, more consistent production and greater chemical stability than competitors.
Evidence that Affirmer remained functional when the toxic payload had been added also indicated that when combined, the two technologies held the potential to develop drug conjugate therapies.
Dr Alastair Smith, Avacta Group chief executive officer, said, "The drug conjugate market is a very important one for the Affimer technology because of the key benefits of Affimers' solvent stability, controlled conjugation chemistry and small size which have now been clearly demonstrated. When combined with the benefits of Glythera's Permalink chemistry, we believe that there is potential to create a competitive, differentiated drug conjugate platform."
"I am delighted with the reciprocal arrangements that we have put in place with Glythera allowing both companies to develop Affimer-Permalink drug conjugates and I look forward to updating the market on progress in Avacta's drug development programmes in due course," Smith added.
As of 1330 GMT, shares had edged up 2.37% to 67.05p.