(Yicai) Aug. 11 -- Huadong Medicine, one of China's most diversified makers of dermatosis medicines, will purchase exclusive regional rights for two skincare products developed by American dermatology firm Arcutis Biotherapeutics for nearly USD100 million to improve its competitiveness with a wider product portfolio.

Huadong penned an agreement with Arcutis yesterday to gain commercial development rights for two products, including Zoryve cream and ARQ-154 foam, in China's mainland, Hong Kong, Macau, and Taiwan as well as Southeast Asia, the Hangzhou-based drugmaker said in a statement today.

The Chinese company will make a downpayment of USD30 million to Arcutis and later proceed with milestone payments of up to CNY64.25 million. It will also pay sales commissions to the California-headquartered company that specialises in chronic inflammatory diseases of the skin.

Zoryve is sold in the United States and Canada to treat plaque psoriasis, an autoimmune disease that causes scaly patches on the skin. Arcutis is applying to bring the ARQ-154 foam, used in treating seborrheic dermatitis which often affects the scalp, to the market.

The two new products will supplement Huadong's production of medicines to treat autoimmune and inflammatory skin diseases, it added.

Shares of Huadong [SHE: 000963] dropped 0.6 percent to close at CNY39.43 (USD5.50).

Editor: Emmi Laine