The agreement will not include South Korea where JWP will retain its exclusivity over the JW1601 drug, which was developed by one of its affiliates – C&C Research Laboratories.
In May 2017, JWP acquired the worldwide exclusive rights to develop and commercialize JW1601. The Korean pharma firm intends to submit investigational new drug application (IND) for a phase 1 clinical trial of JW1601 within this year.
LEO Pharma global R&D executive vice president Kim Kjoeller said: “At LEO Pharma, we continuously seek to expand our pipeline with new innovative solutions with the ultimate aim of bringing real life-changing medicines to the many patients we serve.
“This compound is a perfect fit with our existing biologics currently in phase III (Tralokinumab) and phase I (LP0145) and our topical Delgocitinib currently in phase II.”
JW1601 has been designed to have a dual mechanism of action that prevents the activation and migration of the immune cells that are behind atopic dermatitis. This it does by acting selectively on the histamine H4 receptor and stopping the histamine signaling that causes itching.
As per the terms of the deal, JWP will be paid $17m as upfront fee and development and sales milestone payments of up to $385m. In addition to the milestone payments, the Korean firm will be paid up to two digit royalty based on the net sales of JW1601.
JWP drug discovery center executive vice president Kyoung June Lee said: “We find it very positive that LEO Pharma, a global leader in medical dermatology, recognizes the value of JW1601.
“We have confidence in successful development and global commercialization of JW1601 and we see LEO Pharma as the right partner for this project. JWP will do our best so that the other innovative new drug candidates under development at JWP also can show tangible result.”