AstraZeneca has entered into agreements that bolster its presence in drugs for skin conditions.
The agreements include two of AstraZeneca’s potential new medicines for dermatitis and psoriasis. Leo is based in the UK with a US headquarters in northern New Jersey.
AstraZeneca has entered into an agreement with LEO, a specialist in dermatology care, for the global licenses in skin diseases. Its drug, Tralokinumab is a potential new medicine for the treatment of patients with atopic dermatitis, an inflammatory skin disease resulting in itchy, red, swollen and cracked skin.
AstraZeneca employs about 2,000 in Delaware.
LEO Pharma will make an upfront payment to AstraZeneca of $115 million for the exclusive, global rights to tralokinumab in atopic dermatitis and any future additional dermatology indications. LEO Pharma will also pay AstraZeneca up to $1 billion in commercially-related milestones and up to mid-teen tiered percentage royalties on Product Sales. AstraZeneca will manufacture and supply tralokinumab to LEO Pharma. Tralokinumab is also in Phase III development for patients with severe asthma.
AstraZeneca will retain all rights to tralokinumab in respiratory disease and any other indications outside of dermatology.
AstraZeneca and an affiliate of Valeant Pharmaceuticals International, Inc. agreed to terminate the licence for Valeant’s right to develop and commercialise brodalumab in Europe.
AstraZeneca also entered into an agreement with LEO Pharma for the exclusive licence to brodalumab in Europe.
Brodalumab is under regulatory review for patients with moderate-to-severe plaque psoriasis (a skin disease that causes red patches of skin covered with silvery scales) and in development for psoriatic arthritis (inflammation of the joints associated with psoriasis).
In September 2015, AstraZeneca and Valeant entered an agreement granting Valeant an exclusive licence to develop and commercialize brodalumab globally, outside Japan and certain other Asian countries where the rights are held by Kyowa Hakko Kirin Co.
Valeant will continue to lead the development of brodalumab in the US and all other markets included in the original agreement.
LEO Pharma will gain the European rights to brodalumab under similar terms to those agreed with Valeant. Additionally, Amgen will continue to receive a low single-digit inventor royalty.
Gitte Aabo, CEO, LEO Pharma, said: “LEO Pharma has secured a unique position to help people with skin diseases as a result of our strategic partnership with AstraZeneca, a global healthcare company at the forefront of science-led innovation. By expanding our portfolio to include both biologics and topicals, LEO Pharma is set to become the world dermatology leader – offering the most diverse range of treatment solutions to meet the individual needs of people with skin diseases.”
The agreements do not impact AstraZeneca’s financial guidance for 2016.
