InSilico Medicine (HKG:3696) entered into a global licensing and co-development agreement with Hygtia Therapeutics to advance its ISM8969 program, valuing the deal at up to HK$514.8 million, according to a Tuesday Hong Kong bourse filing.

Hygtia Therapeutics is an incubate of Shenzhen Pengfu Biopharmaceutical Industry Private Equity Investment Fund Partnership Enterprise of Fosun Health Capital and Shanghai Fosun Pharmaceutical (SHA:600196, HKG:2196).

Under the agreement, Insilico and Hygtia will co-develop ISM8969, an oral, brain-penetrant NLRP3 inhibitor for central nervous system (CNS) disorders, with each party holding 50% of the global rights.

Insilico is eligible to receive up to $66 million in upfront and milestone payments, including a $10 million upfront payment due within 30 days, the filing said.

InSilico shares rose nearly 4% in morning trade Tuesday.