Amylyx Pharmaceuticals (AMLX) said Thursday that it has designated AMX0318 as a development candidate for post-bariatric hypoglycemia, and other rare diseases.

The company said AMX0318 was selected as part of a research collaboration agreement with Danish preclinical contract research Gubra, which will receive a $4 million milestone payment for the selection.

Under the terms of the collaboration, Gubra is eligible to receive more than $50 million in success-based development and commercialization milestones, as well as mid-single digit royalties on global net sales.

Shares of Amylyx were up more than 3% pre-bell.