Australia's University of Sydney spinout, Kinoxis Therapeutics, has announced a partnership with global pharmaceutical company Boehringer Ingelheim to develop oxytocin-targeting precision treatments aimed at improving the quality of life for people living with psychiatric disorders.

The partnership, worth up to $181 million ($A273 million) in payments – plus royalties on any future sales – establishes Kinoxis as a global player in the development of precision drugs for the treatment of conditions including schizophrenia, depression and dementia.

The partnership with Boehringer Ingelheim will use chemical compounds developed by Kinoxis that target the oxytocin receptor as its starting point to develop treatments for these conditions.

The partnership will bring significant funding to the University to support further research in the School of Chemistry, School of Psychology, and the Brain and Mind Centre that will be conducted in close collaboration with experts from Boehringer Ingelheim and Kinoxis.

Image caption- From left: Professor Michael Kassiou (School of Chemistry), Dr Hugh Marston (Boehringer), Associate Professor Michael Bowen (School of Psychology) and Hugh Alsop (Kinoxis) in the Chau Chak Wing Museum. Photo: Stefanie Zingsheim