Proactive Investors - Run By Investors For Investors
Why invest in AVCT?
Avacta Group PLC: DEEP DIVE
OVERVIEW

Avacta’s Affimer tech gains traction as it clinches deal with “very high quality partner”

The deal with New England Biolabs, signed in October, is expected to secure six-figure royalty sums as soon as next year
Antigens
OVERVIEW: AVCT The Big Picture
Avacta and NEB have been collaborating to din ways to combine Affimer technology with NEB's products

Biotech firm Avacta Group PLC (LON:AVCT) is gaining commercial traction with its Affimer technology after it inked a licensing deal for the tech with a “very high quality partner” in the form of enzyme discovery and production company New England Biolabs (NEB).

“They’re a super partner, very well respected in the sector” says Avacta’s chief executive Alastair Smith, adding that NEB is a “leading supplier” to the life sciences sector.

READ: Avacta rises as it secures licensing deal with New England Biolabs for Affimer technology

The company has been collaborating with NEB for a while to develop Affimers that combine with NEB’s reagents (a substance used for chemical analysis).

Unlike alternative enzyme inhibitors, Affimers can be fine-tuned to switch at the right temperature without having a negative effect on the overall assay performance.

NEB is in the final stages of product testing and has agreed with Avacta the terms under which the combined product will be commercialised, with Avacta receiving royalties on sales which could begin as soon as 2019.

“It’s a great validation of the technology,” Smith says, adding that commercially there was “a reasonable royalty stream” expected soon that would likely clock in around six-figures.

“We’ve made very solid technical progress over the last few years, and now we’re gradually getting these high-profile partners over the line” Smith said.

The company added that it expected to continue the collaboration with NEB to generate Affimer tools and inhibitors for other enzymes, enabling further product developments.

Affimers presented at leading biotech conference

Avacta also presented data on its Affirmer technology to the Biomarkers and Precision Medicine Congress (BPMC) in mid-October.

READ: Avacta’s CTO to present Affimer data at Biomarkers and Precision Medicine Congress

The BPMC gathers over 300 delegates from leading biotech companies, global pharma organisations and internationally renowned academic institutions to discuss key issues in biomarker research, companion diagnostics, personalised medicine and clinical biomarkers.

NEB follows Bach

The deal with NEB follows a major co-development agreement with another US business, Bach BioSciences, in July.

In what is described as a “ground-breaking” co-invention, the two companies have developed a new class of drug conjugate for cancer.

READ: Avacta shares jump as much as 60% after it inks co-development deal with US innovator

Traditional antibody-drug conjugates, or ADCs, are designed to harness the targeting ability of monoclonal antibodies by linking them to cell-killing agents.

The newly-developed technology uses Avacta’s Affimers instead of antibodies.

Its engineered proteins have several innovative and distinctive features, which could potentially make them a better tool than antibodies for therapeutic applications.

They are smaller, quicker to manufacture and easier to format than antibodies, but they maintain antibody-like biologic activity when binding a target.

With shares trading at around 22.6p, Avacta carries a market cap of £26.1mln.

View full AVCT profile View Profile

Avacta Group PLC Timeline

Related Articles

A man's knee pain is highlighted with a red area that points to inflammation
January 23 2019
The injectable PPS trial has had a clinically meaningful and statistically significant result in patients with arthritic knee pain.
A paper plane about to be launched with the help of surgical scissors
November 13 2018
The voluntarily-suspended company is progressing an ongoing recapitalisation plan.
porcupine
November 30 2018
It’s been a tricky period for Redx, but it has come through it with a promising pipeline, cash in the bank and AstraZeneca’s former UK boss as its new chief executive

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use