Karo Pharma AB (STO:KARO), a drug research and development company, announced on Monday that it has been informed by Pfizer Inc (NYSE:PFE) that a new milestone has been achieved, implying the receipt of a milestone payment of USD6.0m by the company.

In December 2011, Karo Pharma said it entered a research collaboration and licensing agreement with Pfizer the aim of which was to discover and develop compounds that inhibit the activity of the nuclear hormone receptor RORgamma, for treatment of autoimmune diseases.

This development is lead by Pfizer according to the terms of the agreement. Also, Pfizer has global exclusive rights to use, develop, manufacture and commercialise the compounds and products developed under the agreement and holds patents relating to the compounds and products developed.

According to Karo Pharma, it can receive up to USD200m when Pfizer achieves certain development and sales milestones in the project. In addition, Karo Pharma is entitled to royalties on future sales.