Stiefel, a subsidiary of GlaxoSmithKline, has signed an agreement with Canada-based Welichem Biotech to acquire exclusive development and commercialization rights to the novel anti-inflammatory agent, WBI-1001, in all territories outside of China, Taiwan, Macao and Hong Kong.

Welichem will receive an initial payment of $33.8 million and is eligible to receive additional milestone payments upon achievement of certain clinical development milestones and upon commercialization in certain countries following marketing approval from the corresponding regulatory agencies.

In addition to the stated rights to WBI-1001—currently in phase II development for the treatment of psoriasis and atopic dermatitis—Stiefel has received a conditional right to acquire further exclusive rights to develop and commercialize WBI-1001 in China, Taiwan, Macao and Hong Kong, collectively. Upon satisfaction of certain conditions, Welichem will receive an additional payment of $14.5 million.

"I'm delighted to build upon Stiefel's clinical pipeline of novel dermatology assets with the acquisition of WBI-1001," said Barbara White, senior vice president and head of R&D, Stiefel. "We have a strong commitment to patients with skin conditions and are excited to undertake development of this innovative agent."

The transaction is subject to approval by Welichem shareholders.