Novartis (NVS) has entered into a multi-program strategic partnership with Relation to discover and advance new drug targets for atopic diseases, Relation said Tuesday.

Under the deal terms, Relation will receive $55 million upfront through a combination of payments, equity, and R&D funding, and could earn up to $1.7 billion in milestone payments plus tiered royalties on future product sales.

The collaboration will combine Novartis's immuno-dermatology expertise with Relation's AI-driven drug discovery platform and human data capabilities to identify and validate potential first-in-class targets linked to immune dysregulation, the company said.