AbbVie has collaborated with Alector to develop and commercialize new treatments for Alzheimer's disease and other neurodegenerative disorders.
Under the deal, the companies will study a portfolio of antibody targets, of which AbbVie will have global development and commercial rights to two targets.
Alector has developed an advanced immuno-neurology technology platform to simultaneously deal with multiple pathologies associated with neurodegeneration.
Alector will carry out exploratory research, drug discovery and development for lead programs up to the conclusion of the proof of concept (PoC) studies.
AbbVie will take the responsibility for development and commercialization activities after excising the option.
Both firms will equally provide the funding for the development and commercialization activities, and will also equally share the profits.
Alector will secure a $205m upfront payment, and is eligible for a future equity investment of up to $20m.
AbbVie, pharmaceutical discovery vice president Dr Jim Sullivan said: "Alector's unique approach to engaging the immune system to combat neurodegeneration reflects our commitment to target this epidemic in new ways.”
Alector CEO Dr Arnon Rosenthal said: "We seek to advance the field of immuno-neurology as a new therapeutic modality for dementia and neurodegeneration. We anticipate that immuno-neurology therapies will have as much of an impact on brain disorders as immuno-oncology is having on cancer.”
Image: AbbVie US headquarters. Photo: courtesy of AbbVie Inc.