Arcutis, Huadong enter into collaboration, licensing agreement for Zoryve

Key takeaways:

• The agreement will expand the distribution of Zoryve (roflumilast cream 0.3%) into Greater China and Southeast Asia.
• Arcutis will receive an upfront payment of $30 million for the agreement.

Arcutis Biotherapeutics and Hangzhou Zhongmei Huadong Pharmaceutical Co. have entered into a strategic collaboration and licensing agreement to develop and commercialize Zoryve in China and Southeast Asia, according to a press release.

This licensing agreement grants Huadong the responsibility of developing, manufacturing and commercializing Zoryve (roflumilast cream 0.3%), a next generation phosphodiesterase type 4 inhibitor, in China and Southeast Asia for the treatment of plaque psoriasis, seborrheic dermatitis and atopic dermatitis, among other dermatologic conditions. A joint steering committee made up of members from both companies will provide oversight.

Arcutis will receive an upfront payment of $30 million from the agreement. In addition, the company will receive $64.25 million if certain regulatory and sales milestones are reached, as well as possible tiered double-digit royalties.

“This collaboration provides Arcutis access to the second largest pharmaceutical market in the world, providing an unparalleled opportunity to help individuals in this region suffering from immune-mediated skin diseases, and provides meaningful non-dilutive capital for us,” Frank Watanabe, president and CEO of Arcutis, said in the release. “With Huadong’s deep dermatology and regional expertise, we are confident they are the ideal partner to develop and commercialize topical roflumilast for multiple dermatological indications in the Greater China and Southeast Asia markets.”