Avecho Biotechnology (ASX:AVE) partners with Arthur Group to develop anti-cancer drug

• Avecho Biotechnology (AVE) signs a licensing and development agreement with Arthur Group to develop five leading cancer drugs using its novel drug TPM
• The Arthur Group will pay for the clinical development of the products, while Avecho will pocket 30 per cent of the revenue from licensing and 30 per cent of the net profit from commercialisation
• The Arthur Group is planning research and development work for each molecule across four stages, including formulation development, non-clinical testing, clinical trials and registration
• AVE shares soar 20 per cent to 0.6 cents at 1:50 pm AEST

Avecho Biotechnology (AVE) has signed a licensing and development agreement with Arthur Group to develop a series of cancer treatments using its novel drug, TPM.

The agreement includes the rights to five separate oncology products, representing a combined US market of US$2.92 billion.

Avecho’s TPM will replace the adverse solvents and surfactants usually required when making traditional drug formulations, which are proven to exhibit negative side effects or interactions with cancer patients.

The company has previously demonstrated an ability to dissolve poorly water-soluble injectable drugs with TPM, a form of vitamin E that supports safer and clinician-preferred dosage forms.

Under the terms of the agreement, the Arthur Group will pay for all formulation, non-clinical and clinical development of the products, while Avecho receives 30 per cent of the revenue from licensing.

AVE will also receive an additional 30 per cent of the net profit from these products, with the completion of initial formulas expected to take between 12 and 18 months.

“Working with credible third parties like Arthur Group to leverage the tested capabilities of TPM in enhancing the performance of its cancer drug portfolio is deeply rewarding for
our team and supportive of our company’s current commercial focus,” Avecho CEO Doctor Paul Gavin said.

“Arthur Group will start with initial formulation screening of its licensed drugs to determine which are most compatible with TPM – the most receptive drugs to be prioritised first.”

AVE has research and development centres located in New Jersey, USA and Zhejiang in China, which can develop tablets, capsules, injections, semi-solid and other dosage forms.

The Arthur Group has planned out the research and development work needed for each molecule across four stages, which include formulation development, non-clinical testing, clinical trials and registration.

AVE shares were trading 20 per cent higher at 0.6 cents at 1:50 pm AEST.