J-Pharma (TYO:520A) signed a non-binding term sheet with a European biotechnology firm for the development and commercialization of JPH034, a LAT1 inhibitor under development by the company that targets neuro-inflammatory diseases, according to a Friday filing on the Tokyo Stock Exchange.

Under the non-binding term sheet, J-Pharma will license development and commercialization rights for JPH034 globally, excluding Japan, South Korea, Taiwan, and the Association of Southeast Asian Nations (ASEAN) member states, it said.

Shares of J-Pharma fell nearly 7% in recent trade.