Bayer, Kythera ink $373M dermatology deal

Los Angeles-based Kythera Biopharmaceuticals has landed a $373 million licensing deal with Bayer Healthcare's dermatology unit Intendis. The group gets rights to Kythera's lead product candidate, ATX-101, outside the U.S. and Canada.  Kythera will receive an upfront payment of $43 million and may be eligible to receive up to $330 million in milestones. Tiered double digit royalties are also part of the deal.

ATX-101 is a first-in-class drug for the reduction of localized fat under the chin. In two Phase II studies, injections of the drug selectively destroyed fat cells while leaving tissue healthy. The company plans to explore other areas of the body that could benefit from the reduction of small, localized fat deposits. The Intendis deal covers all potential indications of the drug.

"As a first-in-class candidate being studied for minimally-invasive fat reduction, we see ATX-101 as a strong growth opportunity and an excellent entry point into the aesthetic dermatology business," says Intendis CEO Marc Lafeuille. "The agreement with Kythera will allow us to fully leverage both our long-standing expertise in pharmaceutical development, as well as our strong foothold with the dermatologist."

- here's Kythera's release