- IP Group's portfolio company Avacta agreed a development partnership and license agreement with LG Chem, part of the South Korean LG Group, worth up to $180m across upfront, near-term payments and development milestones.

The Affimer technology was Avacta's proprietary alternative to antibodies with wide applications in the life sciences for drug development, diagnostics and research tools, IPO Group said.

Avacta would generate and carry out early-stage optimisation of Affimer drug candidates against multiple undisclosed targets, it added.

LG Chem and Avacta would collaborate to progress these candidates through to drug candidate selection, and LG Chem would be responsible for pre-clinical and regulatory studies, clinical development and world-wide marketing of any resulting products.

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, IP group said.

Avacta would also receive royalties on any future product sales and LG Chem would cover Avacta's costs of research and development associated with the collaboration.

IP Group currently held a stake of 17.1% in Avacta while IP Venture Fund held 1.0%.

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