Avacta Group PLC (LON:AVCT) is teaming up with a company from Finland called FIT Biotech to develop a technology that helps the body create its own drugs.
To do this, scientists somehow need to deliver the DNA blueprint that encodes the protein, or gene into the patient's cells.
WATCH: Avacta boss Alastair Smith anticipating 2018 to be a very significant year
The patient's own cells then make the drug. The ideal treatment must be produced easily and at a high enough dose to create a therapeutic benefit.
Avacta has created Affimers that are small, very simple antibody-like structures that are easily produced, which make them ideal for gene delivery.
What the researchers from both sides want to do is combine Avacta’s discovery with FIT Biotech's gtGTU platform.
The latter is a cutting-edge method of delivering genes to patients.
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It was developed to ensure the stable and prolonged production of therapeutic proteins by the patient's cells, in a safe manner.
The vector removes the requirement for the frequent administration of medication which is cleared from the body after a certain time.
Avacta chief executive, Dr Alastair Smith said the collaboration could lead to “multiple therapeutic benefits and create a best-in-class gene therapy combination with significant potential”.
“It is a very exciting prospect and the group is keen to see the initial data from the pilot study which we anticipate will be in the first half of 2018,” he added in a statement on Thursday.
Similar to Moderna deal
finnCap said the FIT deal is similar to a tie-up Avacta has with Boston-based biotech, Moderna Therapeutics.
But where FIT’s vector technology delivers DNA, Moderna’s uses messenger RNA (mRNA) to deliver the Affimer to the cell.
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“The small size, simple structure and ease of expression of Affimers in cells potentially make them ideal for gene therapy,” said finnCap analyst Mark Brewer.
“Similar to the existing collaboration with Moderna, which is developing a range of mRNA-based gene therapies using Affimers.
“The time to clinical trials could be substantially shortened as it does not require the same extensive CMC [chemistry, manufacturing and control] development work.”
Brewer reckons Avacta is worth 200p a share – the stock is currently changing hands for 71p (up 6% on the day).