The Seattle-based biotech, a subsidiary of Kineta Inc., received an undisclosed upfront payment as part of the deal and is eligible for milestone payments up to $359 million as well as royalty payments.
San Francisco-based Genentech has the option to license technologies developed during the collaboration. Swiss drug maker Roche bought Genentech for $46.8 billion in 2009.
"We are very excited to collaborate with Genentech as they are one of the world's leading biotech companies and an ideal strategic partner for Kineta," Kineta CEO Shawn Iadonato said in a news release. "There is a tremendous unmet patient need to develop more effective, safer and non-addictive therapies for the many people who suffer from chronic pain."
Early tests of the drug, known as α9/α10 nicotinic acetylcholine receptor, have shown disease-modifying effects including reduced inflammation and nerve protection at the injury site. That means the drug could help in slowing the progression of chronic pain.
Founded in 2008, Kineta develops drugs for chronic pain, autoimmune and infectious diseases.
More from American City Business Journals: