Novartis sells off rights to atopic dermatitis drug Elidel

Novartis has agreed a deal to sell off the global rights to its atopic dermatitis treatment Elidel to fellow healthcare company Meda.

The agreement will see Novartis receive an upfront payment of $420 million (256.22 million pounds) in exchange for the manufacturing, marketing and commercialisation rights to the cream-based therapy option.

Elidel has been approved in Europe since 2002 and is indicated as a second-line treatment for signs and symptoms of mild to moderate atopic dermatitis among adults and children aged two years and older.

Novartis is selling off Elidel as part of a wider strategy to focus on its core brands and newer treatments.

The transaction is expected to close in the second quarter of 2011, with Meda due to assume full responsibility for global production of the treatment by 2014.

Last month, Novartis received European approval for Gilenya, the first orally-administered multiple sclerosis therapy to receive EU marketing authorisation.