Avacta Group PLC Drug Development Partnership with Glythera (7915B)

TIDMAVCT

RNS Number : 7915B

Avacta Group PLC

15 January 2018

15 January 2018

Avacta Group plc

("Avacta" or "the Group" or "the Company")

Positive Outcome of Proof-of-Concept Study with Glythera and

Follow on Drug Development Partnership

   --     Successful proof-of-concept study leads to Affimer drug conjugate development partnership 
   --     Affimers shown to have key technical benefits for drug conjugates 
   --     Drug conjugate market expected to be worth $14.6bn by 2030 

Avacta Group plc (AIM: AVCT), the developer of Affimer(R) biotherapeutics and reagents, is pleased to announce that its initial study with Glythera Limited, 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.

The antibody drug conjugate market is estimated to be worth around $1bn today from two approved compounds and is expected to be worth $14.6bn annually by 2030[1]. Drug conjugates combine a chemotherapy (toxin) with a protein such as an antibody or Affimer to target that toxin to the tumor.

Avacta and Glythera have carried out a proof-of-concept study designed to demonstrate that Avacta's Affimer(R) technology could be combined with Glythera's Permalink(R) 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.

Importantly, the initial trial has also shown that the Affimer remains functional when the toxic payload has been added indicating that the combination of the two technologies has the potential to develop drug conjugate therapies.

Dr Alastair Smith, Avacta Group Chief Executive Officer, commented:

"The drug conjugate market is a very important one for the Affimer technology because of the key benefits of Affimers' solvent stability, controlled conjugation chemistry and small size which have now been clearly demonstrated. When combined with the benefits of Glythera's Permalink chemistry, we believe that there is potential to create a competitive, differentiated drug conjugate platform.

I am delighted with the reciprocal arrangements that we have put in place with Glythera allowing both companies to develop Affimer-Permalink drug conjugates and I look forward to updating the market on progress in Avacta's drug development programmes in due course."

For further information from Avacta Group plc, please contact:

 
 Avacta Group plc                        Tel: +44 (0) 
  Alastair Smith, Chief Executive         844 414 0452 
  Officer                                 www.avacta.com 
  Tony Gardiner, Chief Financial 
  Officer 
 finnCap Ltd                             Tel: +44 (0) 
  Geoff Nash / Giles Rolls - Nominated    207 220 0500 
  Adviser                                 www.finncap.com 
  Tim Redfern / Alice Lane / Nikita 
  Jain - 
  Corporate Broking 
                                          Tel: +44 (0) 
  WG Partners                             203 705 9318 
  Nigel Birks / Nigel Barnes              Tel: +44 (0) 
  David Wilson / Claes Spang              203 705 9217 
                                          www.wgpartners.co.uk 
 Zyme Communications (Trade and          Tel: [phone] 
  Regional Media)                         502 947 
  Katie Odgaard                           [e-mail] 
 
  Yellow Jersey PR (Financial Media       Tel: [phone] 
  and IR)                                 947137 
  Sarah Hollins                           [e-mail] 
 

For further information from Glythera Ltd, please contact:

 
 Glythera Ltd                     Tel: [phone] 
  Dave Simpson, Chief Executive    [e-mail] 
  Officer                          www.glythera.com 
  Ian Evetts, Chief Business 
  Officer 
 FTI Consulting (Financial        Tel: [phone] 
  Media and IR)                    1000 
 Simon Conway / Mo Noonan 
  / Rob Winder 
 
   Zyme Communications (Trade       Tel: [phone] 
   and Regional Media)              [e-mail] 
   Lorna Cuddon 
 

About Avacta Group plc (www.avacta.com)

Avacta's principal focus is on its proprietary Affimer(R) technology which is a novel engineered alternative to antibodies that has wide application in Life Sciences for diagnostics, therapeutics and general research and development.

Antibodies dominate markets worth in excess of $100bn despite their shortcomings. Affimer technology has been designed to address many of these negative performance issues, principally; the time taken to generate new antibodies, the reliance on an animal's immune response, poor specificity in many cases, and batch to batch variability. Affimer technology is based on a small protein that can be quickly generated to bind with high specificity and affinity to a wide range of protein targets.

Avacta has a pre-clinical biotech development programme with an in-house focus on immuno-oncology and bleeding disorders as well as partnered development programmes. Avacta is commercialising non-therapeutic Affimer reagents through licensing to developers of life sciences research tools and diagnostics.

About Glythera Limited

Glythera is a biotechnology company focussed on the development of next generation antibody drug conjugates (ADCs) designed to combat difficult-to-treat tumours, including those that are resistant or refractory to current treatment regimens. Glythera's pipeline of stable, safe and superior ADCs is centred on its highly stable PermaLink(R) conjugation platform in combination with a portfolio of highly potent cytotoxic payloads designed to enhance antitumor activity and improve the lives of cancer patients.

For further information visit: www.glythera.com

[1] Antibody Drug Conjugates Market (4(th) Edition) 2017-2030, Roots Analysis.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 15, 2018 02:00 ET (07:00 GMT)