US-based Biogen Inc and Hong Kong-listed Chinese mainland biopharma startup InnoCare Pharma Ltd announced on Monday that they have entered into a license and collaboration agreement for orelabrutinib, a drug candidate currently in a multi-country, placebo-controlled Phase 2 trial for the potential treatment of multiple sclerosis, a rare disease of the nervous system characterized by loss of feeling and control of movement and speech.

Under the terms of the agreement, Biogen will have exclusive rights to orelabrutinib in the MS field worldwide and certain autoimmune diseases outside of China (including Hong Kong, Macao and Taiwan), while InnoCare will retain exclusive worldwide rights to orelabrutinib in the field of oncology and certain autoimmune diseases in China, including Hong Kong, Macao and Taiwan.

InnoCare will receive a $125 million upfront payment and is eligible to receive up to $812.5 million in potential development milestones and potential commercial payments should the collaboration achieve certain development, commercial milestones and sales thresholds.

InnoCare also is eligible to receive tiered royalties in the low to high teens on potential future net sales of any product resulting from the collaboration.

Closing of the collaboration is contingent on completion of review under antitrust laws, including the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 in the United States, and other customary closing conditions.