Valeant gets right to develop AstraZeneca’s psoriasis drug

AstraZeneca claimed that clinical trials have shown high efficacy of brodalumab in treatment of moderate to severe psoriasis in a considerable number of patients. Profits will be shared by AstraZeneca and Valeant after approval, the release stated.

The arrangement excludes Japan and certain other Asian countries where rights to the drug are held by Kyowa Hakko Kirin Co. A 210mg dose of the drug has been found to provide a significant sample of moderate-to-severe psoriasis patients, complete clearance from the skin condition in 12 weeks, when compared to the placebo.

Under the deal Valeant will make an up-front payment to AstraZeneca of $100m (£64.9m) as well as additional pre-launch milestones of up to $170m and further sales-related milestone payments of up to $175m following launch. Amgen originally developed brodalumab and was studying it with AstraZeneca, but stopped that work because some patients experienced suicidal thoughts or behavior after taking it. Amgen said there would be restrictions on the use of brodalumab if it were approved.

AstraZeneca plc (ADR) (NYSE:AZN) has confirmed that Valeant is to assume all the development costs associated with the regulatory approval of the drug.

“Our agreement will help to bring brodalumab to patients with psoriasis”, said Pascal Soriot, chief executive officer of AstraZeneca. Regulatory submission in the U.S. and European Union for brodalumab in moderate-to-severe psoriasis is planned for the fourth quarter of 2015, the companies said. Mr. Pearson has led Valeant through over 50 deals since joining in 2008.

Brodalumab belongs to a class of drugs called IL-17 inhibitors that work by blocking a signaling pathway that plays a key role in inducing and promoting inflammatory diseases.

About AstraZenecaAstraZeneca is a global, innovation-driven biopharmaceutical business that focuses on the discovery, development and commercialisation of prescription medicines, primarily for the treatment of cardiovascular, metabolic, respiratory, inflammation, autoimmune, oncology, infection and neuroscience diseases. The company closed an $11 billion acquisition of Salix Pharmaceuticals Ltd.; acquired a bankrupt pharma firm Dendreon Corp. for $495 million for its prostate cancer drug; purchased Egypt’s biggest drug-maker, Amoun Pharmaceutical, for $800 million; and decided to acquire Sprout Pharmaceuticals for $1 billion to get access to world’s first female libido drug – all in this year alone.