Provention Bio Inc (Nasdaq: PRVB), a United States-based biopharmaceutical company, has collaborated with Hangzhou Zhongmei Huadong Pharmaceutical Co Ltd, a wholly-owned subsidiary of Huadong Medicine Co Ltd, it was reported on Wednesday.

Both firms have collaborated to develop and commercialise PRV-3279, a DART (bispecific antibody-based molecule) targeting the B cell surface proteins CD32B and CD79B, in Greater China (mainland China, Hong Kong, Macau and Taiwan). Provention is initially developing PRV-3279 for the interception of systemic lupus erythematosus (SLE), a chronic autoimmune disorder characterised by an abnormal overactivation of B cells and subsequent pathologic production of auto-antibodies.

According to the terms of the contract, Provention Bio will receive an upfront payment of USD6m, and up to USD11.5m in funding over the next three years to include costs likely to be incurred by Provention Bio with regard to research, development and manufacturing activities. It is eligible to receive additional milestone payments of up to USD172m if certain regulatory and commercial objectives are achieved, and low-to-mid double-digit royalties as a percentage of net sales of PRV-3279 by Huadong in Greater China.