The Company has adopted a licensing business model for its Affimer technology and has, over the past year, established a number of paid-for evaluations of the technology by third parties with a view to securing commercial agreements to develop Affimer based products. This is the first such evaluation to conclude and it has led to an agreement to provide exclusivity for certain Affimers which are relevant in a large diagnostic market. This is an important commercial step and a validation of the significant potential of the licensing business model.
Details of the commercial terms and the proposed use of the Affimer reagents cannot be disclosed due to confidentiality.
Dr Alastair Smith, Avacta Group Chief Executive Officer, commented:
“We believe this deal is a key value inflection point for the Company. We have provided numerous Affimer reagents to customers for in-house research use, but this the first successful conclusion of a technical evaluation of the Affimer technology leading to the third party taking exclusive rights to certain Affimers with product development in mind. This is fundamental to the licensing business model that underpins the future growth of the Affimer reagents business and as such this first deal is hugely important commercial progress.
Securing the first agreement arising from the successful conclusion of an Affimer technology evaluation was an objective that we set for 2017 and so I am delighted to be able to report that we have hit this milestone early in the year. I look forward to reporting on further such successes in the near future as well as reporting on progress in our Affimer therapeutic programmes.”