Chennai, Jul 28 (IANS): Indian drug major Sun Pharmaceutical Industries Ltd said it entered into $50 million licensing agreement with Spanish firm Almirall for the development and commercialisation of tildrakizumab for psoriasis in Europe.

In a statement issued late Wednesday night, Sun Pharma said under the terms of the license agreement, Almirall will pay an initial upfront payment of $50 million.

"Phase-3 studies of tildrakizumab have recently been completed. Sun Pharma will be eligible to receive development and regulatory milestone payments and, additionally, sales milestone payments and royalties on net sales, the terms of which are confidential," the statement said.

Psoriasis is a chronic immune disease that appears on the skin. It affects an estimated 7.5 million people in the US and approximately 125 million people worldwide, the statement said.

According to Sun Pharma, Almirall will be able to lead European studies, and participate in larger Global clinical studies for psoriasis indication subject to the terms of the Sun Pharma - Merck agreements, as well as certain cost sharing agreements.

"Sun Pharma will continue to lead development of tildrakizumab for other indications, where Almirall will have right of first negotiation for certain indications in Europe," the statement added.

"Sun Pharma is committed to growing our dermatology franchise, with tildrakizumab as our lead investigational compound. We continue to build our pipeline and capabilities in this important therapeutic area of significant unmet need. We are proud to be partnering with a regional leader in dermatology, like Almirall, to bring tildrakizumab to the European market," Dilip Shanghvi, managing director, Sun Pharma was quoted as saying in the statement.

Additionally, the license agreement has a provision for possible co-promotion agreement at some point in the future, subject to certain conditions.