Biopharmaceutical royalties buyer Royalty Pharma plc (Nasdaq:RPRX) said on Wednesday that it has entered into an agreement with biotechnology company Biogen Inc (Nasdaq:BIIB) to provide up to USD250m in research and development funding for litifilimab, a first-in-class biologic in Phase 3 trials for systemic lupus erythematosus (SLE) and cutaneous lupus erythematosus (CLE).

Litifilimab has demonstrated proof-of-concept and a well-tolerated safety profile in both conditions, with results published in the New England Journal of Medicine. It has the potential to be the first targeted biologic approved for CLE, a disease with no currently available treatments.

Biogen expects Phase 3 trial results between 2026 and 2027.

Under the deal, Royalty Pharma will provide funding over six quarters in exchange for regulatory milestones and mid-single-digit royalties on global sales.