Spanish pharmaceutical company Almirall S.A. (BME:ALM) said on Monday that it has entered into a collaboration and licensing agreement with Shenzhen CrystalO Biopharma Technology Co Ltd to discover and develop novel small molecules for medical dermatology.

The partnership combines CrystalO's ion channel drug discovery platform with Almirall's expertise in medical dermatology research and clinical development.

CrystalO will lead compound discovery, optimisation, IND-enabling studies and early clinical development through proof-of-concept testing, while Almirall will hold exclusive rights to develop, manufacture and commercialise the resulting products globally outside mainland China.

CrystalO will retain development and commercialisation rights in mainland China.

Under the agreement, CrystalO will receive an upfront payment, success-based research, development, regulatory and commercial milestones, and tiered royalties on future net sales.

CrystalO will also pay Almirall tiered royalties on future product sales in mainland China.