Avacta Group PLC (LON:AVCT) have seen their shares spike as the firm told the market about a new joint venture.
Avacta’s focus is on its proprietary Affimer technology which is an engineered alternative to antibodies that has application in Life Sciences for diagnostics, therapeutics and general research and development.
Today, the firm saw its shares spike 7.43% to trade at 18p. 8/1/20 11:49BST.
Avacta have landed an impressive joint venture in South Korea with titan Daewoong Pharmaceutical Co Ltd (KRX:069620).
Avacta will hold a 45% stake in the joint venture, as this new project looks to develop a new class of mesenchymal stem cells which will produce affimer proteins.
These type of stem cells are used as agents for the treatment of autoimmune and inflammatory diseases.
In the partnership, Daewoong will be providing the technology to access the generation of stem cells from a single donor.
Additionally, Avacta have pledged to develop these affimer proteins, which will be integrated into the stem cells.
The icing on the cake was reached for Avacta, when Daewoong said they will totally cover research & development costs for Avacta’s development of the proteins.
“Cell and gene therapies are attracting intense clinical and commercial interest. We are very excited to establish this joint venture with Daewoong, one of the top pharmaceutical companies in Korea, to develop the affimer platform in this important therapeutic area. Our vision is to combine our platforms to create the next generation of cell therapies, for which the potential is huge,” said Chief Executive Officer Alastair Smith.
Rise of Gene Therapy market
Many pharmaceutical firms are looking at the gene therapy market as a way to expand market presence and become a market innovator.
In this sector, a noteworthy name in Yourgene (LON:YGEN) is worth mentioning.
Yourgene Health is an international molecular diagnostics group which develops and commercialises genetic products and services. The group works in partnership with global leaders in DNA technology to advance diagnostic science.
The firm has seen a productive few months of trading, and in December the board remained confident to smash expectations.
The molecular diagnostics group said that in the six months ended September 30, its’ revenue doubled to £7.8 million from £3.9 million in the comparative period a year ago.
Notably, gross profit rose to £4.7 million from £2.0 million which will impress shareholders in a period of tough market conditions and stiff competition.
Roche make move into Gene Therapy
Another notable merger into the gene therapy market came from Roche Holding Ltd. Genussscheine (SWX:ROG).
In December, Roche announced that they had completed the purchase of gene therapy specialist Spark Therapeutics Inc (NASDAQ:ONCE).
The deal is valued at $4.3 billion and has been formally completed following clearance from the British and US competition authorities, and becomes Roche’s second acquisition in a short space of time following the recent deal with US based Promedior.
Roche has purchased US based Spark Therapeutics to expand in gene therapy and boost its market in hemophilia A, where Roche’s existing drug will surpass $1 billion in sales across 2019.
Certainty, Avacta seemed to have landed a winner here. The innovative nature of the company combined with the titan technology and reputation of Daewoong will certainly please shareholders.