Journey Medical is taking control of a topical drug delivery platform and three drugs based on the technology. The dermatology specialist is paying Vyne Therapeutics $20 million upfront to take control of two approved drugs, Amzeeq and Zilxi, along with an investigational candidate.
The delivery system is designed to stabilize medicines to enable the topical application of molecules that would otherwise be hard to administer via the skin. Vyne approached the challenge using natural oils, resulting in hydrophobic, surfactant-free foams that are expected to work with, not against, moisturizing oils made by the skin.
Vyne has validated the technology using minocycline, a tetracycline antibiotic that has been available in an oral formulation for decades. By enabling topical delivery, Vyne sought to improve the treatment of inflammatory lesions associated with acne and the long-term skin condition rosacea.
The two products, which Vyne acquired in a 2020 merger with Foamix Pharmaceuticals, generated net sales of around $4 million in the third quarter. How much the deal ends up costing Journey will depend on whether it can increase sales significantly.
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In addition to the $20 million upfront and a $5 million fee on the first anniversary of the close of the deal, Journey will pay a series of fees if net sales clear certain milestones. The agreement features one-time payments when net sales of each product top $100 million, $200 million, $300 million, $400 million and $500 million.
Each fee is 10% of the target, so the paydays range from $10 million to $50 million. As three drugs are covered by the deal, Journey will pay $450 million if it can grow sales of all the products to $500 million.