Swedish biotechnology firm Karo Bio (KARO) has achieved its first milestone in a research agreement with Pfizer for the development of drugs for treatment of autoimmune diseases.
The achievement of milestone in the RORgamma project triggers the first milestone payment to Karo Bio.
Under the research agreement, which started in December 2011, Pfizer agreed to provide full funding for the research costs and will have the sales rights to market any products that will be developed.
The deal includes developing treatments for diseases such as rheumatoid arthritis, multiple sclerosis and psoriasis using the nuclear hormone receptor RORgamma.
The nuclear hormone receptor controls the production and secretion of the cytokine IL-17, a major contributor to inflammation.
Its major role in driving disease pathology has been implicated in clinical trials using monoclonal antibodies which neutralize IL-17 activity.
The agreement signed between the two firms was extended in June 2013, making Karo Bio eligible for over $200m in milestone payments.
Karo Bio mainly carries out drug development projects in the therapeutic areas neuropsychiatry, inflammation, autoimmune diseases and cancer.