EvoGenix to optimise proteins for GlaxoSmithKline

GlaxoSmithKline (GSK) and EvoGenix (ASX:EGX) have signed a deal to apply the antibody developer's EvoGene technology to optimise selected compounds from GSK's product pipeline.

Under the terms of the non-exclusive research and collaboration agreement, EvoGenix will receive an undisclosed payment to fund research and development of up to three projects for GSK.

"In each case, we'll be using our EvoGene technology for protein optimisation to improve affinity, specificity or other characteristics, by making a wide range of variants of the starting protein and then testing those until we find a better version," said EvoGenix's CEO Merilyn Sleigh.

The resulting proteins will therefore have a better chance of succeeding through to the next stage of development, said Sleigh.

EvoGenix will also receive a number of milestone payments upon successful completion of project goals and if the products progress through preclinical and clinical stages. GSK will develop and commercialise the products with EvoGenix receiving royalties on sales.

"It would normally take around five to seven years after we finish the work on the product that it is actually registered for use," said Sleigh.

The projects will run sequentially and Sleigh expects EvoGenix's work on each project to take around six to nine months. While GSK has not yet specified which therapeutic areas it will be focusing on, the company has a range of interests in protein therapeutics, said Sleigh.

Sleigh said that the collaboration with GSK is a "big step forward" for EvoGenix and a "real endorsement of the company's business strategy" after its recent listing.

"We've obviously had some small deals previously, but this is really our first deal with a major company. It's also potentially a multi-product deal, which is very attractive," she said.

While EvoGenix has previously stated that the company is looking for two to three projects per year, Sleigh said that realistically EvoGenix will work on two projects this financial year. "We've got a number of discussions going on with other parties. It's always impossible to predict if and when such discussions might turn into something real, but there's a number of discussions in progress," she said.