RORgamma, a nuclear hormone receptor, directly controls the production and secretion of the cytokine IL-17, a major contributor to inflammation thereby helping in the treatment of autoimmune diseases like rheumatoid arthritis, multiple sclerosis and psoriasis.
As per the alliance, Pfizer will provide full funding for the research costs and will have the exclusive right to market any products developed under the collaboration.
Karo Bio, on the other hand, is entitled to receive up to $217m in upfront and milestone payments in addition to potential royalty fees.
Pfizer Worldwide Research and Development Biotherapeutics senior vice president Jose-Carlos Gutierrez-Ramos said the role of RORgt in Th17 cell differentiation coupled with the increasing clinical validation for the importance of IL-17 and other Th17-derived cytokines in autoimmune diseases, makes RORgt a compelling target.
"Combining KaroBio’s deep expertise in nuclear hormone receptors with the world-class chemistry and cytokine immunology expertise of Pfizer has the potential to accelerate our drug discovery effort in this competitive area," Gutierrez-Ramos added.