Elanco Animal Health (ELAN) has entered into an exclusive global licensing agreement with Neurizon Therapeutics in connection with monepantel, the latter said Wednesday.

Under the partnership, Neurizon is granted exclusive global rights to Elanco's data package and related intellectual property for monepantel, which is the active ingredient in Neurizon's lead investigational therapy NUZ-001, which is intended for amyotrophic lateral sclerosis and other neurodegenerative diseases.

The agreement will also provide access to Elanco's extensive animal safety and manufacturing data, which is expected to reduce development costs, accelerate clinical timelines and support global regulatory submissions.

Neurizon said Elanco will receive a nominal upfront payment upon the execution of the deal and will be eligible to receive development milestone payments of up to $9.75 million for the initial product and $5.2 million for subsequent ones, and up to $65 million tied to commercial sales milestones.

Furthermore, Elanco will also receive tiered single-digit royalties on future global net sales.

The companies said they are working to finalizing a supply agreement, with a follow-up announcement expected in H2.