Leo Pharma in-licenses new psoriasis therapy

Leo Pharma has announced a new in-licensing deal for an innovative oral treatment for psoriasis from biotech company Virobay.

The multimillion-dollar collaborative arrangement will see the companies partnering on the development of a compound that is currently undergoing preclinical testing, with phase I studies to commence before the end of the year.

Under the terms of the deal, Virobay will be paid an initial upfront fee of $7 million (4.54 million pounds), followed by milestone payments totalling up to $300 million, in addition to potential royalty fees on sales.

This comes as part of a wider series of planned in-licensing and acquisition deals that Leo Pharma plans to execute in order to support its global growth strategy.

Kim Kjoller, senior vice-president for global development at Leo Pharma, said: "Together with Virobay, we pursue new scientific findings and not least strive to develop a safe, effective and convenient oral treatment [for psoriasis]."

In November 2011, the company presented research grants to a pair of young European scientists, based on their promising research in the field of dermatology.