LEO Pharma enters biologics through strategic partnership with AstraZeneca

The partnership covers potential new medicines for atopic dermatitis and psoriasis.

The partnership covers potential new medicines for atopic dermatitis and psoriasis, two of the world's major skin diseases where a significant unmet medical need remains. With the partnership, LEO Pharma enters into biological medicines within dermatology and expects to significantly expand the company's future treatment offering. The deal is expected to secure an entirely new foothold in the dermatology market for LEO Pharma, a global healthcare company dedicated to helping people achieve healthy skin.

"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," says Gitte Aabo, President and CEO, LEO Pharma.

In the partnership with AstraZeneca, LEO Pharma acquires the global licence to tralokinumab in skin diseases and the exclusive licence to brodalumab in Europe. Tralokinumab is a potential new medicine, an anti-IL-13 monoclonal antibody, that has completed a Phase IIb study for the treatment of patients with atopic dermatitis. Brodalumab is an IL-17 receptor monoclonal antibody under regulatory review for patients with moderate-to-severe plaque psoriasis.

Under the terms of the 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 manufacture and supply tralokinumab to LEO Pharma. AstraZeneca will retain all rights to tralokinumab in respiratory disease and any other indications outside of dermatology.

Luke Miels, Executive Vice President, Global Product and Portfolio Strategy, AstraZeneca, said: "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 commercialisation of tralokinumab in atopic dermatitis and other dermatology conditions."