Surface Oncology Inc. announced its entry into a broad collaboration agreement with Novartis AG. The companies are joining forces to develop immunotherapeutics that target the tumour micro-environment and the interface of innate and adaptive immunity. The collaboration could generate up to USD 170 million for Surface in the form of upfront, equity and near-term milestone payments.

The terms grant Novartis exclusive access to the existing cancer immunotherapies pipeline of Surface. This includes an exclusive global license to Surface's leading programme and options to license up to three additional programmes from the portfolio. Surface Oncology will also be entitled to clinical and commercial milestones plus up to double-digit royalties on product sales.

It can also opt to retain U.S. development and commercialization rights for minimum half of the programmes included in the collaboration.