Life sciences group Abzena (ABZA:AIM) has received a welcome boost after sealing a licence agreement with start-up biotech firm Trieza Therapeutics.
The news sparked a 5.2% rise in the share price to 36p, a change of fortune given the stock's 18-months of steady declines. The shares had traded as high as 86.5p in July 2015, then valuing the serial loss-making business at more than £120m versus the current rough £48m.
Abzena offers services that improve biopharmaceutical product manufacturing and efficiency, such as antibody therapies, which are proteins that help to identify and help remove viruses and bacteria. Demand for its services has been accelerating through 2016, a trend flagged by Shares in March.
Today's news will see Abzena grant Trieza an exclusive worldwide licence to an undisclosed antibody sequence based on its inhouse developed Composite Human Antibody technology. The license can also be extended to include other parties as Trieza sees fit.
The antibody sequence is likely to be first adapted for use with Trieza’s viral vector technology. This will deliver genetic material into cells of test subjects from which novel therapies for the study and treatment of tumours can hopefully be developed.
Abzena could make up to $35m in development and commercial milestone payments if develops work out really well. There is also a royalties income stream factored into the agreement from any sales of licensed products based on its sequence, although future revenues are not guaranteed.
