Switzerland-based Novartis will sell the global rights to manufacture and market Elidel skin cream to Meda Pharmaceuticals, based in Sweden, for an upfront payment of $420 million, according to a Bloomberg report.

Meda will begin making Elidel, which treats mild to moderate atopic dermatitis, within three years of the agreement’s conclusion, Novartis reported. Novartis will receive a gain of about $406 million from the transaction.

Meda will, in turn, license the drug in the U.S., Canada and Mexico to Ontario-based Valeant Pharmaceuticals International, the Canadian company said in a statement.