) and Dermira, Inc. announced that they have entered into a
licensing agreement for the development and commercialization of
Cimzia in dermatology.
Terms of the Deal
UCB granted an exclusive license to Dermira for the development of
Cimzia for psoriasis in the U.S., EU and Canada. Dermira will bear
the cost of phase III development of Cimzia for dermatology. If
approved, Dermira can commercialize Cimzia in the U.S. and Canada.
Though sales will be recorded by UCB, Dermira will receive tiered
royalties on sales. Dermira will receive up to $49.5 million and
$40 million on the achievement of development/regulatory and tiered
commercial milestones, respectively.
Under this deal, UCB invested $5 million in Dermira's equity. It
could invest up to an additional $15 million in Dermira's equity
Cimzia is already approved for the treatment of adults suffering
from moderately-to-severely active rheumatoid arthritis, active
psoriatic arthritis and active ankylosing spondylitis as well as
for reducing the signs and symptoms of Crohn's disease. In Europe,
Cimzia is approved for an additional indication − active axial
spondyloarthritis. In 2013, net sales of Cimzia were €594 million,
up 27% y/y.
We are positive on UCB's deal with Dermira. Cimzia is an important
growth driver for UCB apart from Vimpat and Neupro. The drug, if
successfully developed for the treatment of psoriasis, will expand
the eligible patient population for the Cimzia while boosting its
Investors looking for well-positioned stocks in the health care
sector may consider
Biogen Idec Inc.
ANI Pharmaceuticals, Inc.
ARIAD Pharmaceuticals, Inc.
). While Biogen and ANI Pharma carry a Zacks Rank #1 (Strong Buy),
ARIAD holds a Zacks Rank #2 (Buy).
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