Biotechnology company Valerio Therapeutics (Euronext Growth Paris:ALVIO) on Thursday announced a binding term sheet with Abivax for an exclusive global research and development collaboration, with final terms subject to a definitive co-ownership and licence agreement.

Under the agreement, Valerio expects to receive an upfront payment of up to approximately EUR2.4m and could earn development and commercial milestone payments, royalties on net sales, and sublicensing revenues upon execution of the definitive agreement and achievement of specified milestones. The companies will collaborate to identify, design, manufacture and preclinically evaluate next-generation therapeutic candidates for immune-mediated inflammatory diseases, with Abivax able to further develop selected candidates.

Valerio said the collaboration will provide non-dilutive funding to support its pipeline while expanding the potential for future milestone and royalty revenue.

The company also highlighted its proprietary precision RNA therapeutics pipeline, including lead candidates VTX-001 and VTX-002 targeting immunity and inflammation.

Valerio aims to nominate up to two development candidates within 12 to 18 months and advance at least one programme into first-in-human studies within 18 to 24 months.