Merz North America has lined up a deal to develop and commercialize a medicated, topical foam developed by Israel-based Foamix.

No financial terms were disclosed, nor did the companies specify the medical indication that the topical foam would address. But a topical foam would be a new type of product for Merz North America.  The Greensboro-based unit of German company Merz Pharmaceuticals, Merz North America has an array of gel and cream dermatology products addressing conditions such as Athlete’s foot and eczema.

Under the development agreement and memorandum of understanding, Merz gains an exclusive worldwide license for the global development and commercialization of the topical foam. Foamix receives an undisclosed up front payment and stands to gain an unspecified amount milestone payments as the foam makes development progress. Foamix will also gain royalties on net sales.

Merz will assume the full cost and responsibility for clinical development of the foam. Merz will also handle manufacturing and commercialization of the product worldwide.