Fusion Antibodies PLC (AIM:FAB) (AIM:FAB) is in demand after it signed a collaborative R&D agreement with a US biotechnology start-up.
The company, a spin out from Queen's University Belfast which helps develop antibodies for therapeutic drug and diagnostic applications, said it would receive a minimum of US$1.83mln in fees over the next two years.
Under the terms of the deal Fusion will provide its discovery and engineering services in relation to the research and development of several pre-determined projects.
There is a framework for increased fees depending on how the work goes. The US company has made an initial cash payment of US$318,000 to Fusion with the remainder payable at pre-agreed intervals.
Should a product be successfully developed, registered and commercialised, Fusion will be entitled to royalty payments based on a percentage of sales figures of that product.
The US start-up is backed financially by a US based biotechnology investment company which is active in life science investments.
Fusion chief executive Richard Jones said : "We are delighted to have agreed this important new contract with a key player in the biotech industry. The agreement has a minimum contract value of US$1.83 million which is very significant. Furthermore, we are especially pleased that the project will take place using our RAMP platform, highlighting that this technology continues to gain traction in the marketplace."
Fusion shares rose 17.3% or 19.5p to 132p.