Israel-based dermatology company Sol-Gel Technologies (NASDAQ: SLGL) and Searchlight Pharma, a Canadian specialty pharmaceutical company, on Tuesday announced exclusive license agreements for the Canadian market for dermatology drugs, TWYNEO and EPSOLAY developed by Sol-Gel.

Sol-Gel will receive up to USD11m in upfront payments, regulatory and sales milestones and royalties for both drugs.

Searchlight Pharma plans to file Canadian regulatory submissions in early 2024 and expects both products to be key parts of its dermatology pipeline.

TWYNEO is used to treat acne vulgaris in adults and paediatric patients, while EPSOLAY is used for inflammatory lesions of rosacea in adults.

Sol-Gel will support Searchlight in obtaining and maintaining regulatory approvals in Canada. Both companies aim to maximize the presence of the drugs in Canada and Sol-Gel has already obtained FDA approval for TWYNEO and EPSOLAY in the US.