Novartis (NVS) entered into a licensing and option agreement with Abogen Biosciences to advance RNA-encoded therapeutics, Abogen said Friday.

Under the agreement, Novartis receives an exclusive worldwide license to lead autoimmune asset ABO2203 along with options for future RNA platform programs, Abogen Biosciences said.

Abogen Biosciences will receive $575 million upfront and remains eligible for up to $7.2 billion in milestone payments plus potential sales royalties, it said.

The lead drug candidate uses mRNA to produce immune system cell engagers inside the body to clear B cells in patients with autoimmune diseases, the company added.

Abogen said the agreement also gives Novartis options on other potential drug programs using its RNA technology, expanding the potential application of the platform beyond vaccines.

The transaction remains subject to customary closing conditions, including required regulatory clearances.