LONDON (ShareCast) - (Sharecast News) - Clinical-stage biopharmaceutical company Avacta Group announced on Wednesday that a preclinical development milestone has been achieved in its multi-target therapeutics partnership with South Korea's LG Chem Life Sciences, triggering an undisclosed milestone payment.

The AIM-traded firm and LG Chem have a multi-target therapeutics development agreement to develop 'Affimer' therapeutics in several disease areas.

As part of the agreement, LG Chem had the exclusive rights to develop and commercialise, on a global basis, Avacta's Affimer PD-L1 inhibitor with 'Affimer XT' serum half-life extension.

LG Chem had successfully completed certain preclinical in-vivo models in the PD-L1/XT programme, leading to the selection of a preclinical candidate for further development towards the clinic, and triggering an undisclosed milestone payment.

The company said the partnership also provided LG Chem with rights to develop and commercialise other Affimer and non-Affimer biotherapeutics combined with Affimer XT half-life extension for a range of indications, meaning Avacta could earn up to $55m in milestone payments for each of those new products.

In addition, under the agreement, Avacta would earn royalties on all future Affimer XT product sales by LG Chem.

"I am delighted with the progress in our important strategic partnership with LG Chem," said chief executive officer Alastair Smith.

"LG Chem is a world-class drug development partner with excellent biologics manufacturing and clinical development capabilities and a pioneering vision to develop innovative drugs.

"I am particularly pleased that we have achieved this significant milestone with a novel Affimer bispecific product, which highlights the tremendous promise of the Affimer platform."

At 0928 BST, shares in Avacta Group were up 3.23% at 116.65p.

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