Regeneron Pharmaceuticals (NASDAQ: REGN), a biotechnology company, has signed a research collaboration and option licencing agreement with United States-based Vyriad, it was reported yesterday.

The contract has been signed to discover and develop new oncolytic virus-based treatments for treating various forms of cancer.

The companies will also sign a five year research contract to use Regeneron's VelociSuite technologies to design and test Vesicular Stomatitis Virus-based oncolytic virus treatments. The firms will commence a phase two clinical study in 2020 to evaluate Regeneron's PD-1 inhibitor Libtayo (cemiplimab-rwlc) in combination with Vyriad's oncolytic virus Voyager-V1 in multiple types of cancer. Under the terms of the deal, Vyriad will secure an upfront payment, while Regeneron will make an equity investment in the company.