Denmark-based privately held Leo Pharma A/S will pay $40 million upfront for global rights to a potential drug called FB825 to treat eczema and allergic asthma.

Taipei-based Oneness Biotech Co. Ltd. and Chinese company Microbio Shanghai have signed the exclusive licensing agreement with Leo Pharma.

Under the agreement, Leo Pharma will also offer up to $530 million in milestone payments plus royalties.

Oneness will be responsible for carrying out a phase 2a study of FB825 in the U.S. to treat atopic dermatitis, or eczema — a chronic condition that makes the skin red and itchy. Meanwhile, Microbio Shanghai will undertake a phase 2a trial of the drug in China to treat allergic asthma.

Leo Pharma will take over all the development activities following the mid-stage studies, the companies said in an April 15 press release.

FB825 holds an orphan drug status in the U.S. as a potential therapy to treat Hyper IgE Syndrome — a rare immunodeficiency disease characterized by eczema and recurrent lung infections, among other things.