Pleco Therapeutics SA, a Netherlands-based specialty biopharmaceutical company, has signed a strategic collaboration with Belgium-based Hyloris Pharmaceuticals SA (Euronext Brussels: HYL), a specialty biopharma company, it was reported on Wednesday.

The collaboration is aimed at developing and commercialising a novel Plecoid Agent to improve the effectiveness of chemotherapy in patients with Acute Myeloid Leukaemia (AML) and Small Cell Lung Cancer (SCLC).

The deal is valued at up to EUR8.7m. Hyloris Pharmaceuticals SA is offering EUR1m in various tranches over time, automatically convertible into Pleco equity under certain conditions, along with potential funding of up to an additional EUR7.7m in pre-defined R&D activities against an agreed development plan. Hyloris has received global exclusive co-development rights and future joint commercialisation to Pleco's fixed-dose combination PTX-061 to treat AML, with the potential to expand into SCLC with its PTX-062 programme. Both firms are to share global gross product margins in AML and SCLC, dependent on sales volumes.