Dermira to develop Genentech's failed asthma candidate for atopic dermatitis

Dermira Inc. (NASDAQ:DERM) will revive development of lebrikizumab, this time for atopic dermatitis, after the Genentech Inc. unit of Roche (SIX:ROG; OTCQX:RHHBY) discontinued its development following mixed results from two Phase III trials for severe uncontrolled asthma.

Genentech granted Dermira exclusive, worldwide rights to the humanized mAb targeting IL-13 for all indications except interstitial lung diseases, such as idiopathic pulmonary fibrosis, for which Roche retains rights. Dermira will pay Roche $80 million up front plus an additional $55 million in 2018. The pharma is also eligible to receive up to $1.3 billion in development, regulatory and sales milestones, plus royalties ranging from high single-digits to the high teens...