French drugmaker Sanofi (SAN.FR) said Monday it has entered into an agreement to develop cancer immunotherapies with German biotech company Evotec AG (EVT.XE) and Austria's Apeiron Biologics.

The deal covers research collaboration and a license agreement to discover and develop molecule-based immuno-oncology therapies that treat cancers by boosting the anti-tumor activity of the human immune system, Sanofi said.

Sanofi will have sole responsibility for all development, regulatory, commercial and manufacturing activities of the products. The French pharmaceutical group will provide two years of funding for Evotec and Apeiron. If the project continues, Evotec will be entitled to receive further milestone payments that could total more than EUR200 million, as well as royalties on net sales, Sanofi said.