ArriVent BioPharma (AVBP) said late Tuesday it has entered into an exclusive licensing agreement with Lepu Biopharma to develop and commercialize gastrointestinal cancer drug MRG007 outside of Greater China.

Under the terms of the deal, Lepu Biopharma will get an upfront payment and near-term milestone payments totaling $47 million in cash and will be eligible to receive up to $1.16 billion in development, regulatory and sales milestones and tiered royalties on net sales outside of Greater China.

The payments and research and development costs will not change ArriVent's expected cash runway into 2026, the company said.

MRG007 has shown antitumor activity in preclinical models, the company said, adding that an investigational new drug submission is planned for H1.