Biotherapeutics company Avacta Group plc (AIM:AVCT) revealed on Tuesday that it has expanded its multi-target Affimer development partnership and license agreement with LG Chem Life Sciences, part of the South Korean LG Group, to include several disease areas.

Under a prior partnership, Avacta has generated a large number of Affimer proteins that bind to the first drug target nominated by LG Chem. LG Chem will carry out pre-clinical development of Affimer molecules and upon successful completion would trigger the next substantial milestone payment to Avacta.

Following the success of the partnership, LG Chem has nominated the second and third drug targets for Avacta's Affimer binders. Each of these programmes has the potential for further milestone payments.

In conjunction, Avacta's therapeutics development agreement provided the company with upfront and near-term development milestone payments, plus longer-term clinical development milestones.

Additionally, Avacta will receive royalties on any future product sales and LG Chem is covering all Avacta's costs of research and development associated with the collaboration.