Shares in DBV Technologies SA gained more than 9 percent Friday on news of a licensing deal on a treatment for birch (Betula verrucosa) pollen allergy with Stallergenes SA, which is worth up to €145 million (US$198 million) in milestone payments, as well as royalties on potential product sales.

The deal is the first tangible outcome of a strategic research alliance on respiratory allergy treatments the two companies entered earlier this year. Antony, France-based Stallergenes is also taking a 2 percent equity position in Bagneux, France-based DBV by acquiring stock from existing shareholders.

The agreement represents the first licensing deal for DBV’s Viaskin patch technology, which allows for the transcutaneous delivery of allergens to the immune system without the risks associated with exposure to the bloodstream.

Stallergenes is supplying the Bet v 1a allergen that will form the basis of the treatment, a recombinant birch allergen it in-licensed from Vienna-based Biomay AG back in 2003. In 2009, Stallergenes reported that a sublingual tablet formulation of the same protein attained the primary endpoint of a Phase IIb/III trial in 483 patients. That product did not undergo further development, however.

Stallergenes will fund all preclinical development on the birch allergy program at DBV, which will take 18 to 24 months to complete. It will have global development and commercialization rights on the resulting clinical candidate.

Birch pollen allergy, which is common in northern and central Europe, causes allergic rhinitis and asthma in those affected. An additional, common complication is the development of oral allergy syndrome, which arises because of cross-reactivity between birch pollen allergens and food proteins with similar structures.

Several other firms have already tested recombinant birch pollen products. Anergis SA, of Epalinges, Switzerland, recently reported that its vaccine for birch allergy, AllerT, recently met the primary endpoint of a 240-patient Phase IIb trial. Based on its proprietary Contiguous Overlapping Peptide technology, which is designed to induce rapid desensitization, the product is due to enter Phase III trials next year. Allergopharma GmbH & Co. KG, of Reinbek, Germany, has already completed Phase III trials of a recombinant birch pollen allergen.

The most advanced program based on DBV’s Viaskin technology is the company’s treatment for peanut allergy, which is currently undergoing a Phase IIb treatment in 221 allergy patients. Topline data are due in the second half of 2014. The program has received fast-track designation from the FDA.

Officials from DBV and Stallergenes were not available for comment. Shares in DBV (PARIS:DBV) closed Friday at €8.60, up 9.7 percent.

Shares in Stallergenes (PARIS:GENP) gained 30 cents to close at €58.80.