AstraZeneca signs deal with LEO Pharma

9 years ago - Published in Finance, Fundamental Analysis

AstraZeneca has reached agreement to sell the Danish Leo Pharma licenses for two drugs for the treatment of skin diseases by canceling the contract signed in September last year with Valeant. Leo Pharma will acquire the rights of tralokinumab, new drug used to treat inflammatory atopic dermatitis, paying $ 115 million immediately to AstraZeneca and up to 1 billion to the achievement of certain sales targets (as well as a percentage of royalty).

The second agreement sees AstraZeneca and Valeant terminate the license for brodalumab in Europe, with AstraZeneca entering into a new agreement with LEO Pharma for the region while Valeant will save those for the rest of the world.

In relation to the cancellation of the previous agreement, AstraZeneca will pay Valeant an initial sum and subsequent payments to the achievement of certain sales targets.

"This agreement Allows us to concentrate our Efforts on tralokinumab's potential for patients with severe asthma, a priority area for AstraZeneca, while benefitting from LEO Pharma's expertise in dermatology for the continued development and commercialization of tralokinumab in atopic dermatitis and other dermatology conditions," said executive vice president of global product strategy and portfolio Luke Miels.