In July 2016, AstraZeneca entered into two agreements with LEO Pharma for potential dermatology medicines tralokinumab and brodalumab.
Under the first agreement, LEO Pharma gained the global rights to tralokinumab in atopic dermatitis and any future dermatology indications for an upfront payment of $115 million. LEO Pharma will also pay up to $1 billion in commercially-related milestones and up to mid-teen tiered percentage royalties on Product Sales. AstraZeneca continues to manufacture and supply tralokinumab to LEO Pharma and retains all rights to tralokinumab in respiratory disease and all other indications outside of dermatology.
The second agreement grants Leo Pharma an exclusive licence to brodalumab in Europe for psoriasis. Brodalumab (Kyntheum) was approved in the EU for the treatment of adults with moderate-to-severe plaque psoriasis in July 2017.
This is a very important, strategic move for LEO in the sense that we’ve for a long time been strong in topicals and today are the world leader in topical treatment in psoriaris. But we want to move beyond that so that we are not only offering treatment in mild-to-moderate diseases, but actually also to severe diseases - and that we are now able to do.
Leo Pharma has done a fantastic job in the transition of these two assets. Not only do they have strong technical skills and capabilities, but I think culturally they’re a very good fit with AstraZeneca, and that’s demonstrated by the strong relationships being formed at all levels of the alliance.”