LEO Pharma will pay AstraZeneca $115m in upfront payment, $1bn in milestones and up to mid-teen tiered percentage royalties on product sales.
Tralokinumab is also in phase III development for patients with severe asthma. AstraZeneca will however retain all rights to tralokinumab in respiratory disease and any other indications outside of dermatology.
AstraZeneca has also agreed to give LEO Pharma the exclusive European license to brodalumab, a treatment of moderate-to-severe plaque psoriasis, earlier held by an affiliate of Valeant Pharmaceuticals International.
Last September, AstraZeneca granted Valeant an exclusive licence for the development and commercialization of brodalumab globally, outside Japan and several other Asian countries where the rights are held by Kyowa Hakko Kirin Co.
Valeant will continue to develop and commercialize brodalumab in the US and all other markets included in the original deal.
LEO Pharma will gain the European rights to brodalumab under same terms to those agreed with Valeant.
AstraZeneca executive vice president of global product and portfolio strategy Luke Miels added: "These agreements allow us to capitalise on LEO’s strong track record of bringing new dermatological treatments to patients in Europe, while enabling Valeant to focus on bringing brodalumab to market in the US and other key markets."
The agreement for tralokinumab is subject to customary closing conditions and is anticipated to complete in the third quarter of this year.