Tolerance Bio Inc, a biotechnology company focused on preserving, regenerating and modulating thymic function to address immune diseases and extend healthspan, announced on Wednesday that it has entered into a licensing agreement with NeoImmuneTech Inc (NIT) (KOSDAQ:950220), a biotechnology company focused on T-cell-based immunotherapies.

Under the agreement Tolerance Bio will develop and commercialise efineptakin alfa (also known as NT-I7), a clinical-stage long-acting IL-7 fusion protein, for certain thymus-related indications in the Americas and Europe.

This marks Tolerance Bio's transition to a clinical-stage biotechnology company, with the company planning Phase 2 studies focused on enhancing thymic function and improving immune resilience.

HIV immunological non-response, described as a model of accelerated immune ageing, is expected to be among the initial indications evaluated.

Efineptakin alfa has been studied in more than 800 subjects across multiple clinical trials, generating safety, tolerability, pharmacologic and proof-of-principle data. The therapy's clinical experience in immunologically vulnerable populations, including people living with cancer or HIV, supports further development.

Tolerance Bio said this addition expands its pipeline across biologic drugs, thymus-targeting mRNA and thymus cell therapies.

Under the agreement, NeoImmuneTech is eligible for up to USD260m in potential development and sales milestone payments, plus equity consideration and tiered royalties on net sales.