- Avacta said it had teamed up with AffyXell to develop medicines which would be used by the latter to generate new cell and gene therapies.

Avacta and AffyXell would now work together to develop Affimer proteins against a range of targets which, when produced by mesenchymal stem cells (MSCs), were intended to 'inhibit inflammatory and autoimmune pathways and improve the overall efficacy of MSCs, creating a next generation of stem cell therapies,' the company said.

'The initial focus for AffyXell will be on inflammatory and autoimmune diseases. In the longer term, there is potential for AffyXell to address oncology uses for these Affimer-enabled cell and gene therapies,' it added.

Under the terms of the collaboration and license agreement, Avacta's research and development costs associated with generation of the Affimer proteins would be funded by AffyXell.

Avacta would also retain the rights to commercialise the Affimer proteins outside of the field of cell therapies.

At 9:55am: [LON:AVCT] Avacta Group PLC share price was +1.25p at 24p

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