Avacta Group and Glythera have agreed the terms of a licensing deal which will allow them to develop drug conjugates using their combined technologies.

Avacta said a successful proof-of-concept study had shown that Affimers have key technical benefits for drug conjugates.

The detailed terms of the licence have not been disclosed but Avacta would receive development milestone payments and royalties on sales of an approved drug developed by Glythera. Avacta said: 'The antibody drug conjugate market is estimated to be worth around $1bn today from two approved compounds and is expected to be worth $14.6bn annually by 2030.

'Drug conjugates combine a chemotherapy (toxin) with a protein such as an antibody or Affimer to target that toxin to the tumour.'