Italian biopharmaceutical company Philogen has signed a worldwide license agreement with drug firm Pfizer for the development of Dekavil, an experimental treatment for autoimmune diseases.

Under the deal, Pfizer will retain exclusive rights to market any products developed during the collaboration, Philogen said in a statement on Thursday.

Philogen will receive an upfront payment and will be eligible to receive milestone and royalty payments.

Further financial details were not disclosed.

"The licensing agreement with Pfizer accelerates our strong commitment to Philogen's unique approach to delivering therapeutic molecules specifically to their site of action," Philogen Chief Executive Duccio Neri said.

Currently in Phase 1 clinical testing, Dekavil is designed as an "armed antibody" which selectively targets inflammatory disease sites in the body instead of suppressing the immune system, Philogen said.

The Siena-based biotech group focuses on developing treatments for disorders related to angiogenesis, the growth of new blood vessels which can play a role in illnesses such as cancer.