ABL Bio said that it has signed a joint development and technology transfer contract with Sanofi for ABL301, a dual antibody candidate for treating degenerative brain diseases like Parkinson's disease.

Under the accord, ABL Bio will receive a down payment of $75 million. It can also receive up to $985 million, including a $45 million step-by-step technology fee according to clinical, licensing, and commercialization success.

The company will also get royalties according to the net sales if it is commercialized.

Sanofi will have the exclusive right to develop and commercialize the ABL301 in global markets.

ABL Bio will lead the remaining preclinical research and phase 1 clinical trials of ABL301. Sanofi will be responsible for the subsequent clinical trials and commercialization.

However, ABL Bio stressed that the contract would go into effect after completing administrative procedures, such as clearing the U.S. antitrust act.

"With this contract, the company has proven the infinite potential of its dual antibody technology," ABL Bio CEO Lee Sang-hoon said. "Using this contract as a stepping stone, we will continue to develop GrabBody-B, the company's proprietary technology, to degenerative brain diseases, including Alzheimer's disease, in a variety of ways."

ABL Bio's Grabody-B platform technology is an insulin-like growth factor 1 receptor (IGF1R) target blood-brain barrier (BBB) shuttle platform that maximizes the BBB penetration of drug candidates for various central nervous system (CNS) diseases.

ABL301 applied GrabBody-B platform technology to effectively deliver an antibody that inhibits the accumulation of alpha-synuclein, the cause of Parkinson's disease, into the brain, maximizing the therapeutic effect.