Biotechnology company MedImmune Inc. said Thursday it plans to develop a monoclonal antibody to treat inflammatory diseases as part of a license agreement with Japan Tobacco Inc. -- maker of tobacco products, food and pharmaceuticals.

MedImmune's initial focus will be on an antibody to inhibit receptors controlling immune responses. The aim of the program is to develop treatments for inflammatory diseases and autoimmune disorders, such as rheumatoid arthritis.

Japan Tobacco will receive an upfront payment, milestone payments and royalties on future marketed products. MedImmune did not disclose the amount of the upfront payment or details on possible future payment arrangements. Japan Tobacco will have exclusive development and marketing rights for in Japan, while MedImmune will have exclusive rights worldwide for this antibody and others that may be developed under the agreement.

MedImmune shares fell 11 cents to $32.24 in morning trading on the Nasdaq.