NexMed, Inc., developer of innovative transdermal treatments based on its proprietary NexACT drug delivery technology, has entered into an exclusive global licensing agreement with Novartis International Pharmaceutical Ltd., for NexMed's proprietary NM100060 nail lacquer treatment for onychomycosis, commonly known as nail fungus. NM100060 is currently in Phase 1 development in the US.

Under the agreement, Novartis acquired the exclusive worldwide rights to NM100060 and will assume all further development, regulatory, manufacturing and commercialization responsibilities as well as costs.

Under the terms of the agreement, NexMed expects to receive up to $51 million in upfront and milestone payments on the achievement of specific development and regulatory milestones, including an initial cash payment of $4M at signing. In addition, NexMed is eligible to receive royalties based upon the level of sales achieved, said a release here.

NexMed's proprietary anti-fungal lacquer NM100060 incorporates NexACT penetration enhancers with terbinafine, the active ingredient in Novartis' blockbuster anti-fungal drug Lamisil.

Onychomycosis is a fungal infection affecting the toenails and/or fingernails and is one of the most common dermatological diseases affecting an estimated 30 million Americans. Nail fungus can be painful, embarrassing, expensive and difficult to treat. The current market for this therapeutic indication is estimated at about $2 billion worldwide.