Avacta Group (AVCT ) said that it has entered into a licence agreement with Biokit, a Werfen Company, to incorporate its Affimer® reagents into a Biokit in-vitro diagnostic (IVD) product.
While the financial details of the deal were not disclosed, Avacta, which develops innovative cancer therapies and diagnostics, is to receive royalties on future sales of any products brought to market following completion of product development and regulatory approvals.
This licence deal follows extensive evaluation by Biokit of certain Affimer reagents to detect a key analyte. Biokit has the right to develop, manufacture and commercialise through original equipment manufacturer (OEM) partners a diagnostic immunoassay for this analyte.
Biokit is recognised as a Centre of Excellence with consolidated experience worldwide in research, development and manufacturing of assays and biomaterial solutions for IVD use.
"I am delighted to have established this partnership with Biokit, a world-renowned IVD company, which further validates the Affimer reagent platform for diagnostics.
Avacta's diagnostics business model combines development of a wholly owned pipeline of products, including the SARS-CoV-2 rapid antigen test, with licensing of Affimer reagents to diagnostic development partners such as Biokit,” said Dr Alastair Smith, CEO of Avacta.
He added that there will also potential for the partnership between the two companies to continue and expand “to include other diagnostic targets and future Affimer-based IVDs."
Dr Marta Palicio, Innovation Director of Biokit, highlighted that the agreement will “increase the competitiveness” of the Group's wider customized assay offering for its partners.
He added, “Avacta's technology also enables us to innovate our assays with new reagents like Affimer® reagents, an alternative to antibodies. We can now move onto the next stage of development, incorporation of this technology into new products. We hope this is the first of many assays containing Affimer® reagents which will be developed by Avacta".
Investors will undoubtedly be pleased that this licence agreement is further validation of the Group’s Affimer reagent platform across numerous diagnostics and therapeutics areas. Today, Biokit, A Werfen Company, and world leading in vitro diagnostics OEM, has licensed #AVCT’s Affimer reagents to detect a key analyte (eg biomarker in blood/saliva) following yesterday’s news confirming that the SARS-CoV-2 test can detect the new COVID-19 variants has provided the Group with confidence ahead of Avacta’s next milestone, which is to achieve full clinical validation and CE marking for the AffiDX® rapid antigen lateral flow test.
Furthermore, it’s worth investors noting that Biokit also manufacturers rapid IVD tests for Syphilis, Glandular fever, Toxoplasmosis & Rheumatoid arthritis offering possible additional avenues to explore in due course. Therefore, when added to AVCT’s other 3rd party licensing/research agreements – eg Daewoong Pharma, Astrea BioSeparations, LG Life Sciences, Point Biopharma, ADC Therapeutics, Moderna, etc. - royalty revenue could ultimately become a major income stream for the Company on its own.
Shares in Avacta Group have risen by over 60% in value since the start of February 2021 with the shares trading 3.66% higher this morning at 224.95p following the news.
Reasons to Follow AVCT
Avacta is developing cancer immunotherapies and diagnostics based on its two proprietary platforms - Affimer® biologics and pre|CISION™ tumour targeted chemotherapies.
Its Affimer platform is an alternative to antibodies derived from a small human protein.
Despite their shortcomings, antibodies currently dominate markets, such as diagnostics and therapeutics, which is a market that is believed to be worth in excess of $100bn.
Therapeutics
The pre|CISION targeted chemotherapy platform releases active chemotherapy in the tumour, which limits the systemic exposure that causes damage to healthy tissues, and thereby improves the overall safety and therapeutic potential of these powerful anti-cancer treatments.
Avacta's Therapeutics Division is addressing ‘a critical gap in current cancer treatment’ - the lack of a durable response to current immunotherapies experienced by most patients.
By combining its two proprietary platforms the Company is building a wholly owned pipeline of novel cancer therapies designed to be effective for all cancer patients.
In 2021, Avacta commenced a phase 1 first-in-human, open label, dose-escalation and expansion study of AVA6000 Pro-doxorubicin, the Company's lead pre|CISIONTM prodrug, in patients with locally advanced or metastatic selected solid tumours.
COVID-19 Test Development
Avacta has also developed a SARS-CoV-2 lateral flow rapid antigen test aimed at identifying infectious individuals so that they can isolate promptly and reduce the spread of COVID-19.
Recent data returned earlier this week from the Company’s ongoing clinical studies across Europe and the UK demonstrated an ‘excellent performance’ of the SARS-CoV-2 rapid antigen test in identifying patients with an infectious viral load and no false positive results.
As a result of ‘excellent initial data’, the Company said it will now progress to a full clinical validation with a larger number of patient samples to CE mark the test for professional use, aiming to bring the test to market in Europe around the end of the first quarter of this year.
These data from the first clinical studies will allow it the Group to advance into a full clinical validation of the test, manufactured at scale, at its clinical trial sites in the UK and the EU.
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