Sanofi (SNY) and Earendil Labs have signed a licensing deal for two bispecific antibodies that target autoimmune and inflammatory bowel diseases, Earendil Labs said in a statement Thursday.

Sanofi will gain exclusive global rights to drug candidates HXN-1002 and HXN-1003 once the deal closes, according to the statement.

Earendil will receive an upfront payment of $125 million from Sanofi, it added.

Earendil could earn up to $1.72 billion in development and commercial milestones, including a $50 million payment expected soon after closing, Earendil Labs said.

Earendil is also eligible for tiered sales royalties that start in the high single digits and rise to the low double digits, the statement added.

Sanofi's shares were up about 1.6% in recent trading.

Price: 51.35, Change: +0.79, Percent Change: +1.56