Avixgen and U.S. Biotech Company Seal $360 Million Licensing Agreement for Drug Delivery Innovation
On August 18, 2025, Avixgen, a notable subsidiary of Dx&Vx, made headlines by announcing a monumental licensing-out agreement with a U.S.-based biotech company valued at approximately USD 360 million. This significant deal is centered around Avixgen's next-generation drug delivery platform known as ACP (Advanced Cell Penetrating Peptide). As a company actively working in drug development, Avixgen is primarily owned by Dx&Vx, which holds a substantial 66.2% stake.
Under this licensing agreement, Avixgen will provide the partner company with a limited exclusive license for the ACP patents. This means that the partner can apply these patents exclusively for their own drug development initiatives. The financial agreement includes both upfront payments and development milestones, totaling USD 360 million. Notably, high royalties are expected for ten years post-commercialization, though specific details are confidential at the partner’s request.
The ACP technology is a groundbreaking peptide-based drug delivery system that features a unique structure. This innovative platform allows for effective and stable drug delivery into tissues and cells through either conjugation or simple mixing with various drug compounds. It has broad applications that span across small molecules, peptides, nucleic acids like RNA, and even antibodies. The ACP platform is being touted as a next-generation technology due to its high scalability.
One particularly exciting aspect of the ACP technology is its successful results in preclinical animal tests. Research indicates that drugs conjugated with ACP have shown the capability of penetrating the blood-brain barrier (BBB), a significant hurdle in drug delivery systems. This breakthrough holds promise for enhancing motor functions in damaged animals, signaling a potential solution for developing efficient therapeutics targeting the central nervous system—something that has proven challenging with existing drug delivery methods.
Avixgen and its parent company, Dx&Vx, have positioned themselves as leaders in South Korea's biotech domain, particularly in the development of peptide-based drug delivery mechanisms. The companies have accumulated vast expertise in therapeutic and delivery technologies across multiple peptide platforms.
It's significant to note that while the agreement conveys a limited portion of the ACP's remarkable scalability, important patents related to the BBB are not included in the licensing. Nonetheless, negotiating a substantial USD 360 million in upfront and milestone payments is regarded as a major triumph for the organizations involved.
Sung Jun Han, CEO of Avixgen, expressed great pride in this licensing agreement, marking it as the company's first of its kind. He stated that this accomplishment is a testament to years of persistent research and development. Han extended his gratitude to the partner for acknowledging the value of their technology, emphasizing that this contract could facilitate Avixgen's global market entry and expand collaborative opportunities.
Additionally, Kevin Kwon, the CEO of Dx&Vx, remarked on the successful harnessing of their business development capabilities to promote their subsidiary's technology. He referred to this agreement as a major milestone, suggesting it would positively influence not only ongoing licensing discussions around Avixgen's ACP technology but also other projects in Dx&Vx's pipeline.
This agreement was facilitated by Dx&Vx, who, as the largest shareholder of Avixgen, delegated business development authorities to lead negotiations. Given the adaptable nature of platform technology, there is potential for multiple licensing agreements with different entities. Should such additional deals materialize, Dx&Vx stands to secure further revenue based on the business development trajectory. It is anticipated that this agreement could expedite the timeline for agreements in several ongoing negotiations.
In conclusion, this landmark licensing agreement not only reflects Avixgen’s potential in drug delivery technologies but may also pave the way for broader achievements in the biotechnology landscape, particularly in developing groundbreaking therapies as the industry continues to evolve.
Under this licensing agreement, Avixgen will provide the partner company with a limited exclusive license for the ACP patents. This means that the partner can apply these patents exclusively for their own drug development initiatives. The financial agreement includes both upfront payments and development milestones, totaling USD 360 million. Notably, high royalties are expected for ten years post-commercialization, though specific details are confidential at the partner’s request.
The ACP technology is a groundbreaking peptide-based drug delivery system that features a unique structure. This innovative platform allows for effective and stable drug delivery into tissues and cells through either conjugation or simple mixing with various drug compounds. It has broad applications that span across small molecules, peptides, nucleic acids like RNA, and even antibodies. The ACP platform is being touted as a next-generation technology due to its high scalability.
One particularly exciting aspect of the ACP technology is its successful results in preclinical animal tests. Research indicates that drugs conjugated with ACP have shown the capability of penetrating the blood-brain barrier (BBB), a significant hurdle in drug delivery systems. This breakthrough holds promise for enhancing motor functions in damaged animals, signaling a potential solution for developing efficient therapeutics targeting the central nervous system—something that has proven challenging with existing drug delivery methods.
Avixgen and its parent company, Dx&Vx, have positioned themselves as leaders in South Korea's biotech domain, particularly in the development of peptide-based drug delivery mechanisms. The companies have accumulated vast expertise in therapeutic and delivery technologies across multiple peptide platforms.
It's significant to note that while the agreement conveys a limited portion of the ACP's remarkable scalability, important patents related to the BBB are not included in the licensing. Nonetheless, negotiating a substantial USD 360 million in upfront and milestone payments is regarded as a major triumph for the organizations involved.
Sung Jun Han, CEO of Avixgen, expressed great pride in this licensing agreement, marking it as the company's first of its kind. He stated that this accomplishment is a testament to years of persistent research and development. Han extended his gratitude to the partner for acknowledging the value of their technology, emphasizing that this contract could facilitate Avixgen's global market entry and expand collaborative opportunities.
Additionally, Kevin Kwon, the CEO of Dx&Vx, remarked on the successful harnessing of their business development capabilities to promote their subsidiary's technology. He referred to this agreement as a major milestone, suggesting it would positively influence not only ongoing licensing discussions around Avixgen's ACP technology but also other projects in Dx&Vx's pipeline.
This agreement was facilitated by Dx&Vx, who, as the largest shareholder of Avixgen, delegated business development authorities to lead negotiations. Given the adaptable nature of platform technology, there is potential for multiple licensing agreements with different entities. Should such additional deals materialize, Dx&Vx stands to secure further revenue based on the business development trajectory. It is anticipated that this agreement could expedite the timeline for agreements in several ongoing negotiations.
In conclusion, this landmark licensing agreement not only reflects Avixgen’s potential in drug delivery technologies but may also pave the way for broader achievements in the biotechnology landscape, particularly in developing groundbreaking therapies as the industry continues to evolve.
Topics Health）
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