LONDON (ShareCast) - (Sharecast News) - Preclinical antibody discovery and supply company Fusion Antibodies has signed a collaborative research and development agreement with an unnamed US-based biotechnology company which was recently incorporated to focus on a number of innovative early-stage antibody programmes, it announced on Thursday.
The AIM-traded firm said that under the agreement, it would provide its discovery and engineering services in relation to the research and development of several predetermined projects.

Based on the initial statement of work, Fusion would receive at least $1.83m in fees over the next two years for the provision of its initial agreed scope of services, which would use its 'RAMP' affinity maturation platform.

Depending on the outcome of that work, there was a framework for increased fees for service work within the agreement.

The client had already made an initial cash payment of $0.32m to Fusion on signing, with the remaining consideration payable at pre-agreed intervals.

Fusion said the deal was based on fixed deliverables and downstream milestones for the work, in addition to fees for service.

Should a product be successfully developed, registered and commercialised, the company said it would be fully entitled to royalty payments based on a percentage of sales figures of that product.

The client, which Fusion said it could not name for reasons of commercial sensitivity, was described as a biotechnology start-up that was specifically incorporated to pursue the projects to which Fusion would be providing services.

It said the client was financially backed by a US-based biotechnology investment company, which was active in life science investments.

"We are delighted to have agreed this important new contract with a key player in the biotech industry," said chief executive officer Richard Jones.

"The agreement has a minimum contract value of $1.83m, which is very significant.

"Furthermore, we are especially pleased that the project will take place using our RAMP platform, highlighting that this technology continues to gain traction in the marketplace."

At 1334 BST, shares in Fusion Antibodies were up 12.53% at 126.6p.

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