Dermira gains certain rights to Roche MAb in up to $1.4 billion deal

Shares of US biotech Dermira (Nasdaq: DERM) were down 13.36% at $22.43 by close of trading Tuesday, after it revealed a licensing deal with Swiss pharma major Roche (ROG: SIX) and its subsidiary Genentech, that could cost it as much as $1.4 billion if all milestones are met.

Under the terms of the agreement, Dermira will obtain exclusive, worldwide rights to develop and commercialize lebrikizumab, a monoclonal antibody targeting interleukin 13 (IL-13), for atopic dermatitis and all other indications, except Roche will retain certain rights, including exclusive rights to develop and promote lebrikizumab for interstitial lung diseases, such as idiopathic pulmonary fibrosis.

In February last year, Roche published updates on two identical Phase III studies of lebrikizumab in people with severe asthma. One study met its primary endpoint by showing lebrikizumab significantly reduced exacerbations in people with severe asthma. The second study, however, did not achieve this primary endpoint.