arGEN-X and LEO Pharma sign deal to develop antibody-based treatments for skin conditions


Dutch biotechnology company could potentially receive nearly €105m in payments

Dutch biotech arGEN-X and global Danish healthcare company LEO Pharma have formed an alliance in which they will jointly develop antibody-based drugs for the treatment of chronic inflammation underlying many skin conditions.

Under the terms of the agreement LEO Pharma receives exclusive access to an arGEN-X antibody currently in preclinical development for such skin conditions. arGEN-X also receives pre-IND payments of €4.5m, including an upfront payment and will also receive clinical, regulatory, and sales milestone payments potentially worth €100m, plus tiered royalties.

The companies will co-fund product development costs up to clinical trial application (CTA) filing. Additional terms and financial details were not disclosed.

Tim Van Hauwermeiren, Chief Executive of arGEN-X said: 'We see huge potential in this new partnership in harnessing the complementary expertise of both companies: arGEN-X’s advanced knowledge and capabilities in therapeutic antibody development and LEO Pharma’s global expertise in bringing products to market that meets the needs of dermatology patients.'

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Thorsten Thormann, Senior Vice President, New Product Discovery at LEO Pharma, said the alliance 'marks our entry into the area of biotherapeutics for dermatology'.