09:27 AM EDT, 10/09/2024 (MT Newswires) -- Sonnet BioTherapeutics ( SONN ) said Wednesday it has signed a licensing agreement with Alkem Laboratories on SON-080, which is intended for the treatment of diabetic peripheral neuropathy in India.

Under the terms of the agreement, Alkem will pay Sonnet an upfront payment of $1 million, as well as up to an additional $1 million in milestone payments.

Sonnet will also be entitled to receive a royalty equal to a percentage in the low double digits of the net sales of SON-080 in India.

Alkem will conduct all clinical trials to obtain regulatory approval in India for SON-080 to treat diabetic peripheral neuropathy.

Shares of Sonnet were up more than 8% in recent premarket activity Wednesday.

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