The three-year deal will see both companies jointly develop inhibitors of retinoic acid-related orphan nuclear receptor gamma (ROR?).
According to AstraZeneca, RORy helps to convert a population of immune cells (CD4+ T cells) into T-helper 17 cells which produce cytokines that drive the immune response.
As part of the deal, Orca will receive an upfront payment and further fees from AstraZeneca with a potential total value of $122.5m.
AstraZeneca will gain access to Orca Pharmaceuticals-developed ROR? inhibitors and also has the option to acquire the Orca compounds at the end of the collaboration.
Orca Pharmaceuticals CEO and co-founder Dr Michael Hunter said: "We are delighted that AstraZeneca has recognized the potential of the Orca program in a space where the identification of inhibitors with drug-like properties has proven challenging.
"To have the backing and experience of AstraZeneca makes this program even more competitive as we move forward to deliver best-in-class medicines in this area," Hunter said.
Orca’s technology is focused on ROR? nuclear hormone receptor targets and its lead therapeutic program is in psoriasis.
Image: AstraZeneca headquarters in London, UK. Photo: courtesy of AstraZeneca plc.