Almirall exercises option with Dermira to license rights to lebrikizumab in EU
Almirall and Dermira announced that Almirall has exercised its option to license rights to develop and commercialize lebrikizumab for the treatment of atopic dermatitis and certain other indications in Europe. Almirall and Dermira previously entered into an option and license agreement in February pursuant to which Almirall was granted this exclusive option in exchange for an upfront option fee of $30M. As a result of Almirall's decision to exercise its option, the company will pay Dermira $50M, and Dermira will be eligible to receive additional payments upon the achievement of certain milestones, including $30 million in connection with the initiation of certain Phase 3 clinical studies. Under the terms of the option and license agreement entered into between Almirall and Dermira in February, Almirall paid Dermira an upfront option fee of $30 million in exchange for an option to acquire an exclusive license to develop lebrikizumab in dermatology indications and commercialize lebrikizumab in all indications in Europe. As a result of its decision to exercise its option, Almirall will pay Dermira an option exercise fee of $50M. In addition, Almirall will make additional payments to Dermira upon the achievement of certain milestones, including $30M in connection with the initiation of certain Phase 3 clinical studies and up to $85M upon the achievement of regulatory milestones and the first commercial sale of lebrikizumab in Europe. Dermira will also be entitled to receive milestone payments upon the achievement of certain thresholds for net sales of lebrikizumab in Europe, as well as royalty payments representing percentages of net sales that range from the low double-digits to the low twenties.