The drug’s efficacy as a treatment for ulcerative colitis is currently being assessed in a mid-stage study.
Under the terms, biotech firm Roivant will be responsible for funding the development and will retain commercialization rights for RVT-3101, once approved, in the United States and Japan.
U.S. drugmaker Pfizer will own a 25% stake in the unit and maintain commercial rights for the drug outside of the two countries.
Roivant said the agreement with Pfizer will help further development of the drug as a potential treatment for inflammatory and fibrotic diseases.
Shares of Roivant rose nearly 5% before the bell.