Sun Pharma Gets Exclusive Right To Market Cassiopea’s Acne Drug In U.S., Canada

Sun Pharmaceutical Industries Ltd. has signed an exclusive licencing pact with Cassiopea SpA for supplying a new acne drug in the U.S. and Canada.

Under the terms of the agreement, Sun Pharma, the world’s fourth-largest generic drugmaker, will have the exclusive right to commercialise Winlevi (clascoterone cream 1%) in the U.S. and Canada, and Cassiopea will be the exclusive supplier, according to an exchange filing.

Specialty drugmaker Cassiopea will receive an upfront payment of $45 million, potential commercial milestones totaling up to $190 million and customary double-digit royalties.

Winlevi has been approved by the U.S. Food and Drug Administration as a novel drug for the topical treatment of acne in patients 12 years and older. Sun Pharma said it is the first FDA approval of a drug for acne—the most prevalent skin condition in the U.S. affecting up to 50 million Americans annually—with a new mechanism of action in nearly 40 years.

Abhay Gandhi, chief executive officer (North America) at Sun Pharma, expects the addition of Winlevi to further strengthen the company’s position in the acne segment.

According to Diana Harbort, CEO of Cassiopea SpA, the partnership with Sun Pharma will make Winlevi widely available to dermatology healthcare providers and their patients, and will provide substantial revenue streams for the foreseeable future.

Shares of Sun Pharma were trading 0.86% higher as of 1:15 p.m. on Monday compared with a flat Nifty 50.