REG - Avacta Group PLC - Second Milestone in AffyXell Joint Venture

AvactaAnnouncement

05/06/2023 07:00

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RNS Number : 5636B  Avacta Group PLC  05 June 2023

 

 

5 June 2023

 

Avacta Group plc

 

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

 

Avacta Achieves Second Milestone in AffyXell Joint Venture Triggering
Increased Equity Stake

 

Avacta Group plc (AIM: AVCT), a life sciences company developing innovative,
targeted oncology drugs and powerful diagnostics, is pleased to announce that
a second milestone equity payment has been triggered resulting in an increase
in Avacta's shareholding in AffyXell Therapeutics ("AffyXell"), a joint
venture to develop next-generation cell therapies between Avacta and
Daewoong Pharmaceutical ("Daewoong") in South Korea.

 

Avacta has successfully developed and characterised Affimer(®) proteins
against the second target of interest for AffyXell and has filed a patent
application for the associated intellectual property triggering the second
milestone. The second milestone will result in an increase in Avacta's
shareholding in AffyXell, which currently stands at 19%. The exact
shareholding will be determined, as with the first milestone payment which was
achieved in April 2022, following a formal valuation of AffyXell.

 

AffyXell was established in January 2020 by Avacta and Daewoong as a joint
venture to develop novel mesenchymal stem cell ("MSC") therapies. AffyXell is
combining Avacta's Affimer(®) platform with Daewoong's MSC platform such
that the stem cells are genetically modified to produce and secrete
therapeutic Affimer(®) proteins with immuno-modulatory effects in situ in
the patient. The Affimer(®) proteins are designed to enhance the therapeutic
effects of the MSC creating a novel, next generation cell therapy platform.

 

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

"We are delighted that such rapid progress has been made with the second
target in our joint venture in South Korea. There is great potential for
AffyXell's novel, engineered mesenchymal stem cell platform incorporating
Avacta's Affimer(®) technology to deliver significant improvements to the
standard of care for patients with serious diseases.

 

"We continue to work closely with our colleagues at AffyXell and Daewoong to
advance this cutting edge therapeutic platform."

 

 

- ENDS -

 

For further information from Avacta Group plc, please contact:

 

 Avacta Group plc                                                                Tel: +44 (0) 1904 21 7070

 Alastair Smith, Chief Executive Officer                                         www.avacta.com (http://www.avacta.com/)

 Tony Gardiner, Chief Financial Officer

 Michael Vinegrad, Group Communications Director

 Stifel Nicolaus Europe Limited (Nomad and Broker)                               Tel: +44 (0) 207 710 7600

 Nicholas Moore / Nick Adams / Samira Essebiyea / Nick Harland / Dhiren          www.stifel.com (http://www.stifel.com/)
 Suares / William Palmer-Brown

 FTI Consulting (Financial Media and IR)                                         Tel: +44(0) 203 727 1000

 Simon Conway / Alex Shaw                                                        Avacta.LS@fticonsulting.com (mailto:Avacta.LS@fticonsulting.com)

 Zyme Communications (Trade and Regional Media)                                  Tel: +44 (0)7891 477 378

 Lily Jeffery                                                                    lily.jeffery@zymecommunications.com

                                                                               (mailto:katie.odgaard@zymecommunications.com)

 

About Avacta Group plc - https://www.avacta.com (https://www.avacta.com/)

 

Avacta Group plc is a life sciences company working to improve people's
health and well-being through innovative oncology drugs and powerful
diagnostics. Operating through two divisions, Diagnostics and Therapeutics,
the Group's mission is to provide professionals and consumers with solutions
that improve healthcare, fitness and well-being.

 

Avacta's Therapeutics Division, a clinical stage oncology drug innovator, is
building a wholly owned pipeline of novel Affimer(®) immunotherapies and
pre|CISION™ tumour targeted chemotherapies. This approach is designed to
address the lack of a durable response to current cancer immunotherapies
experienced by most patients and reduce the severe systemic toxicities caused
by chemotherapies. There are five programmes in the pipeline as well as
several global research collaborations and licensing
partnerships. Avacta's lead programme, AVA6000, is a pre|CISION™
tumour-targeted form of the established chemotherapy doxorubicin. AVA6000 is
in Phase I clinical trials in patients with locally advanced or metastatic
selected solid tumours.

 

The Affimer(®) platform is an alternative to antibodies that has been
designed to address many of the drawbacks of antibodies which, despite their
shortcomings, currently dominate the immuno-diagnostics and
immuno-therapeutics markets.

 

The pre|CISION™ tumour targeting platform can be used to modify a
chemotherapy in order to selectively release the active drug in tumour tissue
thereby reducing the systemic exposure that causes damage to healthy tissues.
pre|CISION™ modified chemotherapies are designed to reduce the side effects
and improve the overall safety and therapeutic potential of these powerful
anti-cancer treatments.

 

Avacta's Diagnostics Division develops and supplies a broad range of
in-vitro diagnostic (IVD) solutions. The Division is growing rapidly through
an M&A strategy to deliver a global scale IVD business providing market
leading solutions for healthcare professionals and consumers to inform
treatment and monitor health and well-being. In October
2022, Avacta acquired Launch Diagnostics which serves the hospital
pathology laboratory market in the UK and Europe. In May 2023, Avacta
acquired Coris Bioconcept a Belgium based lateral flow test developer and
manufacturer adding a broad range of marketed professional-use rapid tests
into the Diagnostics Division. Avacta Diagnostic's research and development
centre in Wetherby, UK uses its proprietary Affimer(®) platform to
differentiate immunodiagnostic products to provide marketing leading
performance.

 

To register for news alerts by email go
to www.avacta.com/investor-news-email-alerts
(http://www.avacta.com/investor-news-email-alerts)

 

 

 

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