Industry Trend Analysis - Psoriasis Research Collaboration Will Bring Substantial Rewards For Almirall And Nuevolution - FEB 2017

BMI View: This agreement will see Almirall further develop its Dermatology franchise. The firm is placing increasing importance on this niche area, an effort that is reflected in the franchise's growing sales. Although it will be some way off, a successfully commercialised product stemming from Nuevolution's development programme could be a first-in-class product. This would significantly increase Almirall's standing as a Dermatology provider, but would also increase Nuevolution's R&D reputation.

Almirall and Nuevolution have entered into a global strategic collaboration focusing on the development and commercialisation of Nuevolution's novel RAR-related orphan receptor gamma (ROR gamma t) inverse agonist programme for treatment of inflammatory skin diseases and disorders as well as for treatment of psoriatic arthritis. Under the agreement, the parties will also establish a research collaboration for the identification of additional ROR gamma t inhibitors, with an exclusive option for Almirall to use within the dermatological field and with the optional use outside the field of collaboration for Nuevolution. Almirall will be responsible for funding of its further research as well as preclinical, clinical, regulatory and commercial activities. Nuevolution will be responsible for funding of any of its own research. Eduardo Sanchiz, CEO of Almirall, commented that the programme covered by the agreement includes novel NCEs with potential to be one of the first entries into a new class of oral non-steroid anti-inflammatories.

Nuevolution will receive an upfront payment of EUR11.2mn (USD11.7mn) and is eligible to receive development and regulatory milestone payments of up to in total maximum of EUR172mn (USD180mn) provided successful development, and tiered commercial sales milestones of up to in total maximum of EUR270mn (USD283mn). Nuevolution would further be entitled to receive tiered royalties on future net sales. The upfront payment is paid to Nuevolution upon signing of the collaboration agreement, subject to standard payment terms, and represents a guaranteed payment. Preclinical, clinical and regulatory milestone payments are contingent on successful development, and commercial milestones are contingent on successful achievement of sales milestones.

Dermatology Franchise Of Growing Importance To Almirall
Almirall's Financial Results (EURmn)
Source: Almirall

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