AZN AstraZeneca PLC

By Tapan Panchal

LONDON--AstraZeneca PLC (AZN.LN) agreed with LEO Pharma A/S to license two new medicines used for the treatment of skin diseases, terminating a license with an affiliate of Canada's Valeant Pharmaceuticals International Inc. (VRX.T) in the process.

The U.K. pharmaceutical company said on Friday that it has granted a global license to LEO Pharma for tralokinumab, a new medicine used for the treatment of inflammatory skin disease atopic dermatitis.

Under the terms of the tralokinumab agreement, Leo will make an upfront payment to AstraZeneca of $115 million and will pay up to $1 billion in commercially-related milestones and up to mid-teen tiered percentage royalties on product sales.

AstraZeneca has also agreed to give LEO Pharma the exclusive European license to brodalumab, a treatment of moderate-to-severe plaque psoriasis, previously held by a Valeant affiliate.

The licensing agreements don't impact financial guidance for 2016, AstraZeneca said.

Write to Tapan Panchal at tapan.panchal@wsj.com

(END) Dow Jones Newswires

July 01, 2016 02:48 ET (06:48 GMT)

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