Arcutis gets $25M upfront in partnership deal with Japan’s Sato for roflumilast

Arcutis Biotherapeutics and Sato Pharmaceutical announced that the companies have entered into a strategic collaboration and licensing agreement for the development, manufacture, and commercialization of topical roflumilast in Japan. Sato will receive an exclusive license for both the cream and foam formulations of topical roflumilast, a next generation phosphodiesterase type 4 or PDE4, inhibitor, for multiple dermatological conditions including plaque psoriasis, seborrheic dermatitis, atopic dermatitis, and potentially additional dermatological conditions in the future. “We are delighted to partner with Sato, who share our mission to provide meaningful innovation to individuals suffering from immune-mediated skin diseases. This partnership, built on topical roflumilast’s strong product profile, expands the market opportunity for this effective and well-tolerated steroid-free treatment for multiple skin conditions, and provides meaningful non-dilutive capital for us,” said Frank Watanabe, president and chief executive officer, Arcutis. “Sato’s enduring corporate commitment to helping patients achieve a more positive and enjoyable life makes them an ideal partner to bring topical roflumilast to the millions of people suffering from inflammatory skin diseases in Japan.” Under the terms of the agreement, Arcutis will receive an upfront payment of $25M and potentially an additional $40M if certain regulatory and sales milestones are achieved. Arcutis is also eligible to receive tiered, low double-digit percentage royalties. Sato will be responsible for development, manufacturing, and commercialization of roflumilast cream and roflumilast foam and other topical roflumilast presentations in Japan. Arcutis will continue to be responsible for the development and commercialization of ZORYVE or roflumilast, cream and ZORYVE foam in the United States and other geographies, excluding Greater China and Southeast Asia.