Valeant Pharmaceuticals International has announced its subsidiary has entered into an exclusive license agreement with Kaken Pharmaceutical Co., Ltd., ("Kaken") to develop and commercialize products containing a new chemical entity, KP-470, which is an investigational compound for the topical treatment of psoriasis. If approved, KP-470 will represent a novel drug with an alternate mechanism of action in the topical treatment of the disease.

Under the terms of the licensing agreement, Kaken has granted to Valeant an exclusive license to develop and commercialize topical products containing KP-470 to treat dermatological and rheumatological disorders and conditions. Valeant will have rights to develop and commercialize products with KP-470 in the United States, Canada, and Western and Eastern Europe.

"Investing in our core businesses and enhancing our pipeline for future growth is critical to the successful transformation of Valeant," said Joseph C. Papa, chairman and chief executive officer, Valeant. "With an innovative mechanism of action, KP-470 has the potential to offer novel treatment options for the millions of people around the world who suffer from this debilitating disease."

"Medical dermatology remains a key therapeutic area of focus for the Company, and we are dedicated to developing new treatment options that complement our suite of medicines that treat psoriasis, as well as fungal infections, acne and atopic dermatitis," Papa continued.

Kaken will receive an upfront cash payment and has the potential to receive certain development-based milestone payments, as well as additional milestone payments based on the achievement of certain annual sales milestones. Additionally, Kaken will receive royalties on Valeant's net sales of the products.