Caraway Therapeutics has entered into an exclusive collaboration and option agreement with AbbVie Inc (NYSE: ABBV) to develop and commercialize Caraway's small molecule therapeutics targeting TMEM175.
Loss of function mutations in TMEM175 is associated with reduced lysosomal efficiency in a subpopulation of Parkinson's disease patients.
Under the terms of the agreement, Caraway will receive an upfront cash payment of $17 million.
After Caraway completes certain pre-clinical R&D activities for the collaboration program, AbbVie has an option to license the program and proceed into IND-enabling studies, clinical development, and commercialization.
Caraway is eligible to receive up to $267 million in payments, including upfront and future option payments and development milestones.
Caraway is a portfolio company of AbbVie Ventures.
Price Action: ABBV shares are down 0.12% at $112.21 in the premarket session on the last check Wednesday.
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