In an $80 million deal, India's pharmaceutical major Sun Pharmaceutical Industries Ltd. will acquire worldwide rights to US-based Merck & Co Inc's tildrakizumab, an investigational therapeutic antibody candidate, the company said.

 

 In a statement issued Wednesday, Sun Pharma said both the companies through their respective subsidiaries announced an exclusive worldwide licensing agreement for tildrakizumab (MK-3222).

 

 The drug is currently being evaluated in phase-3 registration trials for the treatment of chronic plaque psoriasis, a skin ailment.

 

 "Under terms of the agreement, Sun Pharma will acquire worldwide rights to tildrakizumab for use in all human indications from Merck in exchange for an upfront payment of $80 million," the statement said.

 

 Merck will continue all clinical development and regulatory activities, which will be funded by Sun Pharma.

 

 As per the deal upon product approval, Sun Pharma will be responsible for regulatory activities, including subsequent submissions, pharmacovigilance, post approval studies, manufacturing and commercialization of the approved product.

 

 Merck is eligible to receive undisclosed payments associated with regulatory (including product approval) and sales milestones, as well as tiered royalties ranging from mid-single digit through teen percentage rates on sales.

 

 "Sun Pharma is very pleased to enter into this collaboration with Merck, a recognized leader in the field of inflammatory/immunology therapies, for this late-stage candidate for chronic plaque psoriasis," Kirti Ganorkar, senior vice president for business development at Sun Pharma, was quoted as saying in the statement.

 

 "This collaboration is a part of our strategy towards building our pipeline of innovative dermatology products in a market with strong growth potential," he added.