LEO Pharma secures global rights to JW1601 in $402m deal with JW Pharmaceutical

LEO Pharma, a leading Danish pharmaceutical company, has acquired global exclusive rights to the atopic dermatitis drug JW1601 from JW Pharmaceutical (JWP), in a significant deal valued at approximately KRW 450 billion ($402 million). This licensing agreement, however, excludes South Korea, where JWP will retain exclusive rights.

Under the terms of the agreement, LEO Pharma will pay JW Pharmaceutical an upfront payment of $17 million, with potential future payments for development and sales milestones reaching up to $385 million. Additionally, LEO Pharma will provide royalties in the double digits based on net sales of the drug. This strategic acquisition positions LEO Pharma to significantly expand its dermatological portfolio and address a considerable unmet need in atopic dermatitis treatment globally.

JW1601, developed by C&C Research Laboratories, a JWP affiliate, is notable for its dual mechanism of action. It targets the histamine H4 receptor, inhibiting the activation and migration of immune cells responsible for atopic dermatitis, thereby reducing histamine-induced itching. This novel approach offers a promising new oral treatment option for atopic dermatitis, a condition that currently lacks effective and safe oral medications.

Kim Kjoeller, Executive Vice President of Global R&D at LEO Pharma, expressed enthusiasm about the partnership, noting that JW1601 aligns perfectly with their current pipeline. The drug complements LEO Pharma’s existing biologics in phase III (Tralokinumab) and phase I (LP0145), as well as their topical solution Delgocitinib in phase II. This integration is expected to enhance their portfolio and bring transformative medical solutions to patients worldwide.

JWP plans to file an investigational new drug application (IND) for JW1601 and initiate a phase I clinical trial in 2018. The successful development and future commercialization of JW1601 could mark a significant advancement in the treatment of atopic dermatitis.

Kyoung June Lee, Executive Vice President and Chief of Drug Discovery Center at JWP, highlighted the strategic fit of the partnership with LEO Pharma, recognizing their global leadership in medical dermatology. JWP remains committed to advancing its pipeline and achieving tangible results with its innovative drug candidates.

This deal not only demonstrates LEO Pharma’s commitment to enhancing its dermatological treatments but also positions the company at the forefront of atopic dermatitis research. The collaboration with JW Pharmaceutical is a strategic move to leverage each company’s strengths in developing and commercializing a potentially groundbreaking therapy.