Japan-based PeptiDream has inked a collaboration and licensing deal with Merck focused on novel peptide drug conjugates for treatment of cancer and other diseases.

Under the terms of the deal, PeptiDream will provide peptide candidates for use against targets of interest and Merck will be responsible for development and will have exclusive rights to the candidates.

PeptiDream will receive an undisclosed upfront payment and is eligible to receive milestone payments of up to $2.1 billion.