Avacta and Glythera agree partnership, following positive trial results

UK-based Avacta Group (AIM: AVCT), the developer of Affimer biotherapeutics and reagents, saw its shares rise 6.24% to 69.59 pence by late afternoon today, after it announced a licensing deal with UK biotech firm Glythera and that its initial study with Glythera, the developer of next-generation antibody drug conjugates, has concluded successfully.

Following this study the two companies have agreed the terms of a licensing deal which will allow them to develop drug conjugates using the combined technologies. The detailed terms of the license have not been disclosed but Avacta would receive development milestone payments and royalties on sales of an approved drug developed by Glythera.

Avacta and Glythera have carried out a proof-of-concept study designed to demonstrate that Avacta’s Affimer technology could be combined with Glythera’s Permalink conjugation chemistry to provide a technically superior drug conjugate platform with shorter development times, simpler, more consistent production and greater chemical stability. An Affimer, compared with a much larger antibody, potentially also allows greater control over the time the drug spends in the blood stream and deeper tumor penetration producing a more effective medicine with fewer toxic side effects.