French drug company Sanofi-Aventis SA (SNY) and U.S.-based Micromet Inc. (MITI) Thursday said they have signed an agreement to license and develop the cancer treatment BiTE antibody.

According to the agreement, Micromet will develop the treatment through Phase I trials and Sanofi will then take charge of further development and commercialization of the antibody.

Sanofi will pay Microment EUR8 million upfront, the companies said in a statement. Micromet could then receive up to EUR162 million in royalties and up to an additional EUR150 million for sales.

Company Web site: www.sanofi-aventis.com

-By Mimosa Spencer, Dow Jones Newswires; +33 01 40 17 17 73; mimosa.spencer@dowjones.com