LONDON (ShareCast) - (Sharecast News) - Cancer therapy and diagnostics developer Avacta has entered into a licence agreement with Werfen subsidiary Biokit, it announced on Tuesday, to incorporate 'Affimer' reagents into a Biokit in-vitro diagnostic product.
The AIM-traded firm described Biokit as "recognised and renowned" for its experience in research, development and manufacturing of assays and biomaterial solutions for in-vitro diagnostic use.

It said the agreement followed an "extensive evaluation" by Biokit of certain Affimer reagents to detect a key analyte.

Under the terms, Biokit would have the right to develop, manufacture and commercialise a diagnostic immunoassay for the analyte through original equipment manufacturer partners.

Avacta said it would receive royalties on future sales of any products brought to market, following the completion of product development and regulatory approvals.

Financial details of the agreement were not disclosed.

"I am delighted to have established this partnership with Biokit, a world-renowned in-vitro diagnostics company, which further validates the Affimer reagent platform for diagnostics," said chief executive officer Dr Alastair Smith.

"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."

Dr Smith said Biokit would develop an automated clinical assay using the Affimer reagents that Avacta had developed for them.

"There is also potential for the partnership between our two companies to continue and expand to include other diagnostic targets and future Affimer-based in-vitro diagnostics."

At 1051 GMT, shares in Avacta Group were up 2.73% at 222.93p.

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