The JV intends is to produce Neovacs’ Kinoid immunotherapy product candidates, including IFNa-Kinoid.
Under the deal, Stellar and Neovacs will establish a production firm, dubbed Neostell SAS, based in Paris, France.
Neovacs will own 70% stake in the JV firm, with Stellar holding remaining 30% stake.
Investments for the production unit will commence after the results of the Phase IIb study of IFNa-Kinoid in lupus undertaken by Neovacs.
Neovacs CEO Miguel Sieler said: "Neovacs has secured funding to move forward on the manufacturing facility and now this joint venture provides access to a scalable capacity of KLH which is a key component of our Kinoid technology.
"These steps will support the manufacturing infrastructure as we progress through clinical trials and to potential market launch of our KLH-Kinoid immunotherapy vaccines."
Stellar Biotechnologies president, CEO and chairman Frank Oakes said: "Through this joint venture, Stellar and Neovacs can work together to ensure the success of Neovacs’ products like IFNa-Kinoid for lupus while we lay the groundwork to offer similar support to other companies developing KLH-based immunotherapies."
Keyhole Limpet Hemocyanin (KLH) is a key immune-stimulating protein used in a range of therapeutic and diagnostic markets.
It is both an active pharmaceutical ingredient in several new immunotherapies targeting cancer, immune disorders, Alzheimer’s and inflammatory diseases as well as a finished product for measuring immune status.