Avacta announces achievement of pre-clinical development milestone in LG Chem Life Sciences partnership

Avacta Group plc (AIM: AVCT), a clinical stage biopharmaceutical company developing innovative cancer therapies and powerful diagnostics based on its proprietary Affimer® and pre|CISION™ platforms, is pleased to announce that a pre-clinical development milestone has been achieved in the multi-target therapeutics development partnership with LG Chem Life Sciences, the life sciences division of the South Korean LG Group, triggering an undisclosed milestone payment.

Avacta and LG Chem have a multi-target therapeutics development agreement to develop Affimer® therapeutics in several disease areas. As part of the agreement, 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.

LG Chem has successfully completed certain pre-clinical in-vivo models in the PD-L1/XT programme leading to the selection of a pre-clinical candidate for further development towards the clinic and triggering an undisclosed milestone payment.

The partnership 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. In addition, under the agreement Avacta will earn royalties on all future Affimer XT® product sales by LG Chem.

Dr. Alastair Smith, Chief Executive of Avacta Group, commented: “I am delighted with the progress in our important strategic partnership with LG Chem. LG Chem is a world-class drug development partner with excellent biologics manufacturing and clinical development capabilities and a pioneering vision to develop innovative drugs.

I am particularly pleased that we have achieved this significant milestone with a novel Affimer® bispecific product, which highlights the tremendous promise of the Affimer® platform.”

About Affimer XT®

Affimer XT® is a system for extending the time a drug spends in the circulation (“serum half-life extension”). Affimer XT® comprises an Affimer® that binds to a large blood protein called Serum Albumin that is too large to be cleared rapidly from the circulation. Half-life extension can be achieved by linking Affimer XT® to a small drug such as an Affimer® PD-L1 inhibitor to make a bispecific drug molecule. A small drug that might otherwise be cleared through the kidneys in a matter of hours, will remain in the circulation for many days if attached to Serum Albumin via Affimer XT®. A long serum half-life increases the exposure of a tumour to the drug and potentially therefore improves the therapeutic effect.



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