Vectura, the FTSE 250 maker of respiratory devices, today announced an exclusive agreement with Dynavax for the clinical application of its technology to treat lung cancer.
Shares in the company rose more than two per cent at the market open. At the time of publishing, the stock was up 1.2 per cent at 113.8p.
Vectura's smart nebuliser called Akita will be used by Dynavax to deliver a protein that triggers immune system response in lung cancer patients.
The agreement covers the phase one and two development programmes, and Vectura will provide devices and device-related support to Dynavax, which is responsible for the rest of the programme.
Dynavax is a US-listed clinical-stage immunotherapy company.
James Ward-Lilley, chief executive of the company, said:
The collaboration with Dynavax is an exciting innovative programme combining the development of a new treatment option for patients with lung cancer along with targeted inhaled delivery.
This agreement underlines the increasing recognition of the utility of Vectura's unique smart nebuliser technology and devices by existing and potential development partners.
Analysts at Shore Capital Markets noted: "Although financial details have not been disclosed Vectura has stated it is eligible for 'modest milestones and development services revenues' at this early stage and does not anticipate a material impact on R&D [research and development] expenditure, with no change from the previous annual guidance of £65-75m in 2017 and 2018."
Vectura's smart nebuliser technology is also used in Bayer's Breelib, which treats pulmonary arterial hypertension.