Aclaris Therapeutics divests Rhofade
Aclaris Therapeutics has divested its Rhofade (oxymetazoline hydrochloride) cream, 1% and related intellectual property assets to EPI Health.
“This transaction provides us with an opportunity to refocus our resources on the development of our immuno-inflammatory assets so that we may develop treatments for patients with immuno-inflammatory diseases who lack satisfactory treatment options,” Aclaris president and CEO Neal Walker said. “We also believe that EPI Health’s extensive dermatology and commercial expertise will be instrumental in their commercialization of Rhofade."
Aclaris and EPI Health have entered into a purchase agreement whereby Aclaris sold the worldwide rights to Rhofade, which includes the assignment of certain licenses for related intellectual property assets. Pursuant to the terms of the agreement, EPI Health has agreed to pay Aclaris total cash consideration of up to $55 million, consisting of an upfront payment of $35 million and potential sales milestone payments of up to $20 million in the aggregate upon the achievement of specified levels of net sales of products covered by the agreement.
In addition, EPI Health has agreed to pay Aclaris, a specified high single-digit royalty calculated as a percentage of net sales, on a product-by-product and country-by-country basis, subject to specified reductions, limitations and adjustments and 25% of any upfront, license, milestone, maintenance or fixed payment received by EPI Health from a licensee or sublicensee in any territory outside of the United States, subject to specified exceptions.