Avacta Group Increases Stake in AffyXell Therapeutics Following Second Milestone Achievement

Avacta Group plc, a life sciences company involved in the development of oncology drugs and diagnostics, has announced that a second milestone equity payment has been triggered. This development results in an increase in Avacta's stake in AffyXell Therapeutics ("AffyXell"), a joint venture aimed at developing next-generation cell therapies. This venture is a collaboration between Avacta and Daewoong Pharmaceutical ("Daewoong"), a South Korean pharmaceutical company.

Avacta has developed and characterised Affimer proteins against a second target of interest for AffyXell and has filed a patent application for the associated intellectual property, leading to the second milestone. This event will result in an increase in Avacta’s shareholding in AffyXell, which currently stands at 19%. The exact shareholding will be determined, as with the first milestone payment which was achieved in April 2022, following a formal valuation of AffyXell.

AffyXell was established in January 2020 by Avacta and Daewoong as a joint venture to develop novel mesenchymal stem cell ("MSC") therapies. AffyXell is combining Avacta's Affimer platform with Daewoong's MSC platform, resulting in the genetic modification of stem cells to produce and secrete therapeutic Affimer proteins in situ in the patient. The Affimer proteins are designed to enhance the therapeutic effects of the MSC, creating a novel cell therapy platform.

Dr Alastair Smith, Chief Executive Officer of Avacta Group, commented: “We have made progress with the second target in our joint venture in South Korea. There is potential for AffyXell’s engineered mesenchymal stem cell platform incorporating Avacta’s Affimer technology to deliver improvements to the standard of care for patients with serious diseases.

“We continue to work with our colleagues at AffyXell and Daewoong to advance this therapeutic platform.”

Avacta Group plc, a player in the life sciences sector, is involved in the development of oncology drugs and diagnostics. The company's Affimer platform is a part of its approach to targeted therapies.

Daewoong Pharmaceutical is a pharmaceutical company with a focus on R&D. The company is involved in collaborative research and its MSC platform is a part of this commitment. Daewoong's emphasis on partnership and open collaboration is evident in its joint venture with Avacta, which aims to bring improvements to patient care through innovative cell therapies.