- Avacta Group said it had formed a development partnership and license agreement with a unit of South Korea's LG Group for biotherapeutics in several disease areas.

The agreement provided for upfront and near-term milestone payments, plus longer-term clinical development milestones, totalling $180m.

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.

Avacta said it may receive an additional $130m in option fees and milestone payments, should LG elect to exercise options for additional targets.

'This alliance is an exciting opportunity, not only to work with a partner who has first class biologics manufacturing and clinical development capabilities, but who also has a pioneering vision to develop innovative therapies,' chief executive Alastair Smith said.

At 2:09pm: [LON:AVCT] Avacta Group PLC share price was +8.3p at 31.5p

Story provided by