US based aTyr Pharma, Inc., a biotherapeutics company engaged in the discovery and development of innovative medicines based on novel immunological pathways, has announced that it has entered into a collaboration and license agreement with Japanses firm Kyorin Pharmaceutical Co., Ltd., or Kyorin, a wholly owned subsidiary of Kyorin Holdings, Inc., for the development and commercialization of aTyr’s lead clinical candidate, ATYR1923, for interstitial lung diseases, or ILDs, in Japan.

aTyr will receive an $8 million upfront payment and is eligible to receive up to an additional $167 million in the aggregate upon achievement of certain development, regulatory and sales milestones, as well as tiered royalties on net sales in Japan. Kyorin will receive the exclusive right to develop and commercialize ATYR1923 in Japan for ILDs.

As per the terms of the agreement, Kyorin will be responsible for funding all research, development, regulatory, marketing and commercialization activities in Japan. aTyr will supply all drug product for Japan, as well as support development activities as the global development leader for ATYR1923.

ATYR1923, a fusion protein comprised of the immuno-modulatory domain of histidyl tRNA synthetase fused to the FC region of a human antibody, is a selective modulator of neuropilin-2 that downregulates the innate and adaptive immune response in inflammatory disease states.