LEO Pharma and 4SC Discovery link for skin disease research

Privately-held Danish dermatology specialist LEO Pharma has entered into an exclusive research and license agreement with the German biotech company 4SC Discovery with the primary aim of jointly researching, developing and commercializing an oral treatment for inflammatory skin diseases such as psoriasis.

Under the accord, LEO Pharma will make an upfront payment of 1 million euros ($1.3 million) to 4SC Discovery and additional funding for R&D. In return, LEO Pharma will receive an exclusive option to license the worldwide marketing and commercialization rights of an unnamed compound for use in inflammatory skin diseases, including psoriasis and other therapeutic areas. Upon LEO Pharma exercising the option, 4SC Discovery will be eligible for a milestone payment of up to 3 million euros and further payments upon achieving specific development milestones of up to 92 million euros as well as up to double-digit royalties.

The collaboration has the potential to result in a novel and convenient breakthrough therapy for chronic skin conditions. The innovative compound, currently in the early development state, has already been proven in preclinical models to significantly reduce if not entirely eradicate symptoms of psoriasis.