UNION therapeutics has signed a strategic collaboration and license agreement with Innovent Biologics for the development and commercialisation of orismilast in China.
Orismilast is a next-generation PDE4 inhibitor for inflammatory dermatology conditions that was initially developed by LEO Pharma and acquired by UNION last year.
It has been tested in Phase II studies, including orally in psoriasis, atopic dermatitis and hidradenitis suppurativa.
The drug is being developed as a potential first-in-class treatment for atopic dermatitis and psoriasis.
Under the deal, Innovent will have exclusive rights to research, develop and commercialize orismilast in China including Mainland China, Hong Kong, Macau and Taiwan while UNION will retain its global rights for the drug outside China.
The company will also have right to participate and recruit Chinese patients for future global studies of the drug.
Innovent president Yongjun Liu said: “We have been impressed with our partner’s capability to advance the global development of orismilast and we are excited to help bring orismilast to patients in China.
“This collaboration further strengthens our position in autoimmune by adding a mid-stage potential best-in-class therapy into our portfolio.”
As per the terms of the agreement, UNION will receive $20m in upfront payment from Innovent.
In addition, the company will also receive up to another $247m in milestone payments along with the tiered royalties on sales of orismilast in China.
UNION therapeutics CEO Kim Kjøller said: “This agreement provides independent validation of our belief in the best-in-class potential of orismilast and expands our global footprint in an underserved market with significant potential.
“Partnering with pharmaceutical companies is core to our strategy of maximizing the value of our product candidates, and we are therefore excited to enter this collaboration with an internationally recognized partner.”