The AIM-quoted firm reported earlier this month that additional working capital would be required over the coming year to support it.
It has signed a non-binding agreement with an unnamed and unconnected third party which, if the deal is confirmed, will pay Abzena an upfront fee in return for a chunk of the future royalties generated by certain Abzena Inside products.
The two parties have now entered into a limited period of exclusivity for the completion of due diligence and negotiation of a definitive agreement.
Following talks with several institutional investors and shareholders, the company decided this was the best way of raising funds.
“The board believes that, if completed, the funds received will be sufficient for the group's short term working capital needs,” read the statement.
Abzena added that it will continue to explore near-term funding options, including equity and/ or debt financing.
Abzena specialises in developing technologies that can be added to a drug to improve its delivery, safety profile and effectiveness.
There are currently 12 therapeutic antibodies produced using Abzena’s antibody humanisation technology being progressed through clinical development by its partners.
Each one has the potential to generate license fees, milestone payments and/or royalties for Abzena.