BioLayer Corporation [ASX: BLS] has officially entered into a commercial agreement with the Prince of Wales Medical Research Institute.

The two organisations plan to collaborate on an assay and other diagnostic tools for use in the early detection of neurodegenerative diseases such as Parkinson's.

The companies will share IP to create the new detection tools. Under the agreement, BioLayer has the option to develop existing IP from the Prince of Wales under license.

BioLayer expects to exercise that option early next year.

BioLayer has also filed a patent application for a new approach to protecting assay processes for the early detection of neurodegenerative diseases.