French biotech company Neovacs (Euronext Growth Paris: ALNEV) will receive a milestone payment after its partner Biosense Global exercised its option to acquire the exclusive licence for therapeutic vaccine IFNalpha Kinoid to treat lupus in China, the company revealed on Tuesday.

The value of the milestone payment was not disclosed. When the licence agreement between the two parties was signed in February 2017 it was said to be worth a total of up to EUR65m in upfront and milestone payments, not including double-digit sales royalties.

The decision by Biosense Global to exercise its option was based on positive results from the Phase IIb trial of IFNalpha Kinoid in lupus.

Biosense Global will acquire exclusive rights to develop and commercialise IFNalpha Kinoid for the treatment of lupus in China and will support the Chinese part of a global Phase III programme.

"The Phase IIb results have shown the relevance of Neovacs' unique technology of active immunotherapy in humans," said Andy Li, CEO of Biosense Global. "The efficacy demonstrated motivates us to push ahead with our cooperation."

Neovacs is also pursuing discussions with other potential partners for a global licensing agreement.