Roche and InterMune Inc. (ITMN Nasdaq) said on Monday they have agreed to develop and commercialize products from InterMune's hepatitis C protease inhibitor program.

The agreement includes InterMune's ITMN-191, which is expected to enter clinical trials before year end. The companies will also collaborate on a research program to identify, develop and commercialize novel second-generation protease inhibitors for treatment of hepatitis C.

Upon closing, Roche will pay InterMune an upfront payment of $60 million. Assuming the successful development and commercialization of ITMN-191 in the U.S. and other countries, InterMune could potentially receive up to $470 million in milestones, including $35 million within the next 12 months, the companies said.