Jiangsu Hengrui Medicine Co., Ltd. and Arcutis Inc. announced an exclusive option and license agreement for the development and commercialization of topical applications of Hengrui’s investigational drug, SHR0302, for the treatment of dermatology disorders. SHR0302, a highly potent, selective JAK inhibitor, is currently being evaluated in Phase 2 clinical trials for rheumatoid arthritis in China. JAK-STAT signaling, which plays a critical role in immune and hematopoietic function, is an intracellular pathway upon which numerous different proinflammatory signals converge. SHR0302 is a novel JAK inhibitor designed to offer a greater therapeutic window through high selectivity, high potency, and an extended tissue half-life. Hengrui has completed a Phase 1 study in healthy olunteers in China and is currently pursuing clinical development of SHR0302 as a systemic therapy for a range of autoimmune disorders. There is growing evidence suggesting that inhibition of JAK may be broadly useful in dermatology. Arcutis obtains exclusive rights to conduct clinical development and pursue a U.S., EU, and Japan license for the commercialization of a topical JAK inhibitor for dermatology disorders. Hengrui is eligible to receive up to $223 million, including upfront and regulatory and commercial milestone payments, plus royalties.