AstraZeneca announced on July 1, 2016 that it has entered licensing agreements with LEO Pharma to develop and commercialize tralokinumab, a biologic that has completed a Phase IIb trial for atopic dermatitis, and brodalumab, which is under regulatory review to treat plaque psoriasis.

Under the terms of the tralokinumab agreement, 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 retain rights to development of tralokinumab to treat respiratory disease.

Prior to the brodalumab agreement, brodalumab was licensed globally (with a few exceptions in Asia) to Valeant Pharmaceuticals International, Inc.  AstraZeneca and an affiliate of Valeant have agreed to terminate the European license, and instead, AstraZeneca has entered into an agreement with LEO Pharma for the exclusive license to brodalumab in Europe, under similar terms to those agreed with Valeant.  Valeant will retain rights to brodalumab in the other territories covered by the original agreement, including the US.

Stay tuned to the Big Molecule Watch for further developments.