Bioverativ and Bicycle Therapeutics have announced a research collaboration focused on the discovery, development and commercialisation of innovative therapies for haemophilia and sickle cell disease.

The collaboration will seek to identify and develop 'Bicycles' to treat rare blood disorders. Bicycles are a new therapeutic modality that combine attributes of antibodies, small molecules and peptides within one molecule, enabling high selectivity and affinity while simultaneously being able to penetrate and bind to the targets of interest within the body.

Bicycle Therapeutics will be responsible for leading initial discovery activities through lead optimisation to candidate selection for two programs. Bioverativ will lead preclinical and clinical development, as well as subsequent marketing and commercialisation. Bioverativ will reimburse Bicycle for internal and external program-related costs.

Upon execution of the agreement, Bicycle will receive a $10 million upfront payment and near-term research and development funding of $4.2 million. Bicycle is eligible to receive up to $410 million related to development, regulatory and commercialisation milestones for products planned under the two programs, as well as tiered single to low double-digit royalties related to product sales. Additional terms of the transaction were not disclosed.