LG Chem said Tuesday that it has signed an agreement with Avacta, a U.K.- based pharmaceutical company, to develop a next-generation protein therapeutics that can overcome the limitations of existing antibody drugs.

Avacta is a research and development biotechnology company focusing on the development of antimicrobial and immunotherapeutic drugs with Affimer, a protein platform technology with smaller molecular size than existing antibodies.

Under the accord, the two companies will develop anti-cancer and immunosuppression target substances using Avacta's platform technology of protein treatment. Avacta will lead the initial phase of the study on the target material to identify candidates, and LG Chem will conduct clinical trials and commercialize the product.

LG Chem will also secure global rights to the substance and pays Avacta with milestones for development and commercialization as well as royalties after the company launches the product.

Also, the contract includes a clause where the two companies will cooperate in developing additional target substance in the future. The two companies will develop materials that can improve the half-life of protein therapeutics to secure competitiveness.

“We will transform the existing therapeutic paradigm by combining the platform technology of Avacta that can overcome limitations of existing antibody drugs and the development and the production capacity of LG Chem,” said Son Jee-woong, head of LG Chem's Life Science Business Division.

Avacta CEO Alastair Smith also said, “LG Chem has a pioneering vision for developing superior clinical development capabilities and innovative new drugs. This partnership demonstrated the potential of the company's core platform technology, Affimer.”

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