- Biotherapeutics and reagents Avacta said it had made progress on its partnership and license agreement with LG Chem Life Sciences (LG Chem), part of the South Korean LG Group.

The two companies are working to develop the company's Affimer therapeutics in several disease areas.

Avacta said it had successfully generated a large number of proteins that bind to the first drug target nominated by LG Chem.

Thes candidate molecules were now being optimised by Avacta, for LG Chem to then carry out pre-clinical development, successful completion of which would trigger the next substantial milestone payment to Avacta.

LG Chem had now expanded the collaboration by nominating the second and third drug targets. Avacta said it was beginning the discovery programmes for binders to those new targets

Each of those programmes also had the potential for further milestone payments.

'I am very pleased with the excellent progress made in the first programme with LG Chem,' chief executive Alastair Smith said.

'Not only is this an important validation of the Affimer platform, confirming that it can be used to quickly generate potential candidate drug molecules for development, but it also means that we have taken an important step towards receiving the next substantial milestone payment under our collaboration agreement.'

At 1:57pm: [LON:AVCT] Avacta Group PLC share price was +1.9p at 19.6p

Story provided by