AbbVie (ABBV) and Simcere Zaiming said Monday they have entered an option-to-license agreement to develop a multiple myeloma bone marrow cancer treatment SIM0500.

SIM0500, which is currently undergoing phase 1 clinical trials, aims to treat patients with relapsed or refractory multiple myeloma in both China and the US, the companies said.

Under the agreement, AbbVie will pay Simcere Zaiming an upfront amount along with additional option fees and milestone payments for a total of up to $1.06 billion, they added.

Simcere Zaiming will receive tiered royalties on net sales outside Greater China, while AbbVie will get tiered royalties in Greater China, according to the companies.

Shares of AbbVie were up 1.3% in recent trading

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