Alumis (ALMS) and Kaken Pharmaceutical have struck a collaboration and licensing agreement to develop, manufacture and commercialize ESK-001 for dermatology indications in Japan, with an option to expand the license to include rheumatological and gastrointestinal diseases, the companies said Tuesday.

Under the terms of the agreement, Alumis will receive $40 million in upfront and near-term co-development payments this year and next year, with the potential to earn up to approximately $140 million in additional milestone payments, the companies said.

Alumis is also eligible to receive tiered royalties ranging from the low double-digits into the twenties on total Japanese net sales of ESK-001, the companies said.

Kaken will be responsible for the clinical development, regulatory approvals and commercialization of ESK-001 in Japan and contribute toward global development costs of the drug, the companies said.

The drug is currently being evaluated in a phase 3 clinical trial for patients with moderate-to-severe plaque psoriasis, the companies said.

Shares of Alumis gained more than 14% in premarket activity.