Percheron Therapeutics (ASX:PER) submitted a non-binding proposal to a pharmaceutical company to in-license a new drug development program focusing on a rare neurological disease, according to a Monday Australian bourse filing.

The proposal remains subject to further negotiations, as well as the execution of a definitive agreement, the filing said.

The firm estimated that at this stage it would take eight to 12 weeks to negotiate and sign a definitive agreement.

It plans to continue to evaluate alternative opportunities in parallel to the proposal.

The firm's shares jumped 8% in recent Monday trade.