Percheron Therapeutics (ASX:PER) said it entered into a worldwide exclusive license agreement with Hummingbird Bioscience to develop, manufacture, and commercialize HMBD-002, a monoclonal antibody therapy, for an upfront payment of $3 million, as well as contingent payments and royalties, according to a Thursday ASX filing.

Percheron will make contingent milestone payments to the Singapore-based firm of up to $287 million as well as pay royalties on net sales of a commercial product, with the first tier incurring a royalty of 12.5%.

It plans to conduct a clinical trial for HMBD-002 in 2026. Hummingbird will provide a batch of drug substance for use in future clinical trials.

A phase one clinical trial for HMBD-002 was completed in the US, under an investigational new drug application with the Food and Drug Administration, which showed the drug candidate to be pharmacologically active and generally safe and well-tolerated.

Percheron's shares jumped 5% in recent trading on Thursday.