Leo Pharma has entered an agreement for the acquisition of US-based clinical-stage biopharma firm Timber Pharmaceuticals for $36m.
Timber develops and markets therapies to treat rare and orphan dermatologic conditions.
The deal comprises an initial upfront payment of $14m followed by $22m in contingent value rights on meeting specified future milestones.
Leo will bolster its medical dermatology pipeline by gaining rights to a late-stage investigational product candidate of Timber, TMB-001.
TMB-001 is a new formulation of the active ingredient isotretinoin for topical use. It is intended for the treatment of congenital ichthyosis, a rare skin condition.
The US Food and Drug Administration (FDA) previously granted orphan and breakthrough designations for the asset. A decision on approval is anticipated in 2025.
TMB-001 demonstrated positive results in a Phase II clinical trial. Recruitment for a Phase III study is underway in Europe and the US.
Leo Pharma CEO Christophe Bourdon stated: “Signing an agreement to acquire Timber Pharmaceuticals and TMB-001, which is still subject to certain closing conditions, is an additional step in delivering on our strategy.
“We will add an attractive late-stage asset to our medical dermatology pipeline and strengthen our team in the US.
“And most importantly, we will add an asset with a promising outlook to be able to help patients suffering from a debilitating disease who today have no proper treatment options.”
The deal will be concluded in the fourth quarter of 2023.
