Pharma company Avacta Group PLC (LON:AVCT) has signed a collaboration agreement with Swiss biotechnology firm ADC Therapeutics SA.
Avacta’s lead candidate is Affimer, an alternative to antibodies, derived from a small human protein as a solution against the short-lasting response to immunotherapies common among cancer patients.
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ADC Therapeutics is a cancer prevention drug company specialising in the development of antibody drug conjugates (ADCs), a type of cancer therapy designed to target tumour cells while sparing the healthy ones.
The two firms will join forces to develop drug conjugates based on Avacta’s Affimer rather than standard antibodies.
Avacta will produce samples against three undisclosed cancer targets to be evaluated by ADC as potential ingredients of new candidates.
ADC will cover Avacta’s costs, while the agreement includes the option to obtain exclusive licences to develop and commercialise Affimer.
Avacta will receive option fees, development and commercialisation milestones, as well as a “single-digit royalty” on sales.
“I am delighted to have established this collaboration with ADC Therapeutics to develop drug conjugates that harness the benefits of Affimer proteins to selectively and efficiently target ADC Therapeutics' PBD drugs to the site of the tumour,” said chief executive Alastair Smith.
“We are very excited about the potential of this collaboration to develop breakthrough oncology treatments, and about its considerable commercial value to Avacta.”
Shares were up 4.91% to 20.72p in the early morning.