Merck & Co. and Cue Biopharma, a Cambridge, Massachusetts-headquartered immunotherapy company, have signed a research collaboration and license agreement in a deal worth up to $374 million.

Under the deal, Cue’s biologics platform will be used to develop biologics engineered to selectively modulate disease-relevant T cell subsets for treating autoimmune disease. The multi-year collaboration will encompass multiple disease targets across certain primary disease indication areas.

Cue Biopharma will receive an up-front payment. It is also eligible to earn up to $374 million in research, development, regulatory, and commercial milestone payments in addition to tiered royalties on sales, if all pre-specified milestones associated with multiple products across the primary disease indication areas are achieved.

Source: Cue Biopharma