Avacta signs deal with LG Chem worth up to $310m

RNS Number : 9328J

IP Group PLC

10 December 2018

 

FOR RELEASE ON

10  December 2018

IP Group plc - Portfolio company Avacta signs development alliance with LG Chem Life Sciences worth up to $310m including $180m across upfront, near-term payments and development milestones

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, is pleased to note that AIM-listed portfolio company Avacta Group plc ("Avacta") has agreed an Affimer^® therapeutics development partnership and license agreement with LG Chem Life Sciences (LG Chem), part of the South Korean LG Group, worth up to $180m across upfront, near-term payments and development milestones.

The agreement, which is aimed at developing Affimer^® therapeutics in several disease areas, may also result in an additional $130m in option fees and milestone payments should LG elect to exercise their options for additional targets. Avacta will also receive royalties on any future product sales and LG Chem will cover Avacta's costs of research and development associated with the collaboration.

IP Group currently holds a direct undiluted beneficial stake of 17.1% in Avacta while IP Venture Fund holds 1.0%.

Avacta will generate and carry out early-stage optimisation of Affimer^® drug candidates against multiple undisclosed targets. LG Chem and Avacta will collaborate to progress these candidates through to drug candidate selection, and LG Chem will be responsible for pre-clinical and regulatory studies, clinical development and world-wide marketing of any resulting products.

The Affimer^® technology is Avacta's proprietary alternative to antibodies with wide applications in the life sciences for drug development, diagnostics and research tools. Avacta's in-house therapeutic pipeline is focused on immuno-oncology and the Group expects to advance its lead programme, a PD-L1/LAG3 bispecific, into the clinic in 2020 whilst building out its pipeline of innovative Affimer^® drug candidates.

For more information, please contact:

IP Group plc	www.ipgroupplc.com
Alan Aubrey, Chief Executive Officer Greg Smith, Chief Financial Officer Liz Vaughan-Adams, Communications	[phone] [phone]/[phone]
Charlotte Street Partners
Andrew Wilson	[phone]
Martha Walsh	[phone]
Tom Gillingham	[phone]

Notes for editors

About IP Group

IP Group is a leading intellectual property commercialisation company which focuses on evolving great ideas, mainly from its partner universities, into world-changing businesses. The Group has pioneered a unique approach to developing these ideas and the resulting businesses by providing access to business building expertise, capital (through its 100%-owned FCA-authorised subsidiaries IP Capital and Parkwalk Advisors), networks, recruitment and business support. IP Group has a strong track record of success and its portfolio comprises holdings in early-stage to mature businesses across life sciences and technology. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO.

Group holdings in portfolio companies reflect the undiluted beneficial equity interest excluding debt, unless otherwise explicitly stated.

For more information, please visit our website at www.ipgroupplc.com.

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