Valerio Therapeutics said Thursday it has entered into a binding term sheet with Abivax (ABVX) for an exclusive worldwide research and development collaboration to develop next-generation therapies for immune-mediated inflammatory diseases.

Under the agreement, the company said it could receive up to 2.4 million euros ($2.8 million) upfront, along with potential development and commercial milestone payments and royalties, subject to the execution of a definitive co-ownership and license agreement.

The companies will collaborate on the discovery, manufacturing and preclinical evaluation of therapeutic candidates, with Abivax retaining the option to advance selected programs into further development.