08:18 AM EST, 02/12/2025 (MT Newswires) -- AbbVie ( ABBV ) and Xilio Therapeutics (XLO) said Wednesday they are collaborating and have signed an option-to-license agreement to develop tumor-activated, antibody-based immunotherapies, including masked T-cell engagers.

The companies said they will combine Xilio's tumor-activation technology with AbbVie's ( ABBV ) research and development efforts in oncology.

As part of the deal, Xilio will receive $52 million upfront, including a $10 million equity investment, the companies said, adding that Xilio could also earn up to $2.1 billion in milestone payments plus royalties.

Shares of Xilio Therapeutics soared 120% in recent premarket activity, while AbbVie ( ABBV ) shares were up 0.1%.