Bayer AG and Arvinas Inc. entered a collaboration to develop therapies for cancer as well as cardiovascular and gynecological diseases.

The companies will use Arvinas' novel Protac platform — a technology that uses the body's own natural protein disposal system to selectively degrade and remove disease-causing proteins — to develop therapies for human diseases.

Under the agreement, New Haven, Conn.-based Arvinas will receive an upfront payment, committed research and development funding and equity investment, combined worth more than $60 million.

Germany based-Bayer will own the rights to the lead structures generated in the collaboration. Arvinas is also eligible to receive development milestones worth over $685 million plus royalties.

In addition, the companies will launch a joint venture that will use the Protac technology to create agricultural products. The venture will be supported by the intellectual property from both companies and over $55 million in committed funding from Bayer.

Bayer and Arvinas will equally share governance and equity ownership of the joint venture.