Pharmaceutical company Allergan has signed a licensing agreement with AstraZeneca's global biologics research and development arm MedImmune for the global rights to MEDI2070.
MEDI2070 is currently in development for the potential treatment of crohn's disease and ulcerative colitis.
Crohn's disease and ulcerative colitis are chronic inflammatory conditions of the gastrointestinal tract.
As per the agreed terms, AstraZeneca will receive a $250 million upfront payment from Allergan towards worldwide license to develop and commercialise the anti-IL-23 monoclonal antibody.
Allergan may also make potential payments to AstraZeneca of up to $1.27 billion over a period of up to 15 years.
Allergan chief research and development officer David Nicholson said: "MEDI2070 represents an exciting addition to our Open Science pipeline, adding an important new programme currently being studied in Crohn's disease, with potential across a number of inflammatory and autoimmune disorders.
“The MEDI2070 programme also reinforces Allergan's commitment to bringing forward important innovations in the treatment of inflammation and autoimmune disorders where significant unmet need exists across many of our therapeutic areas.
"We look forward to bringing our significant clinical development and regulatory expertise to bear and maximising the potential benefit of this possible new treatment option for patients."
Subject to certain customary closing conditions, the transaction is expected to be completed by the fourth quarter of 2016.
Allergan has recently acquired Vitae Pharmaceuticals and its VTP-43742, a Phase 2 first-in-class, orally active RORγt (retinoic acid receptor-related orphan receptor gamma) inhibitor for the potential treatment of psoriasis and other autoimmune disorders.