Dimerix (ASX:DXB) entered into an exclusive development and license agreement with Fuso Pharmaceutical Industries to develop and commercialize its drug candidate, DMX-200, for focal segmental glomerulosclerosis in Japan, according to a Tuesday Australian bourse filing.

Dimerix will receive a payment of 300 million yen within 40 days of executing the agreement and 400 million yen on the start of the first clinical trial site in Japan, anticipated in the first quarter, the filing said. It is also entitled to potential development and commercialization milestones of up to 9.8 billion yen as well as potential royalties of between 15% to 20% on net sales of DMX-200 if it is commercialized.

Fuso will be responsible for development costs, submission, and maintenance of the regulatory dossier with Japan's Pharmaceuticals and Medical Devices Agency, the filing said. It will also be responsible for sales and marketing activities in Japan.

The companies will form a joint steering committee to align the development and commercialization of the drug candidate in the East Asian country.

Dimerix's shares jumped nearly 23% in recent Tuesday trade.