LEO Pharma has signed an agreement to acquire US-listed Timber Pharmaceuticals.
Upon closing, this transaction will add an attractive late-stage asset to LEO Pharma’s pipeline in medical dermatology, the company states.
“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 promising outlook to be able to help patients suffering from a debilitating disease that today have no proper treatment options,” says Christophe Bourdon, CEO of LEO Pharma.
Up to 36 million USD
The deal represents a total transaction value of up to 36 million USD with (i) an initial upfront consideration of 14 million USD, and (ii) up to an additional 22.0 million USD in contingent value rights (CVRs) payable upon achievement of certain milestones.
Timber Pharmaceuticals’ lead investigational product candidate, TMB-001, is a topical reformulation of the active ingredient, isotretinoin, which is aimed at treating congenital ichthyosis – a rare skin disease with significant unmet need and no approved prescription therapies available. Isotretinoin is an API that today only exists in an oral formulation in the U.S. The reformulation, TMB-001, has received an orphan and breakthrough designation by the FDA, and is on track with an action date as early as mid-2025. TMB-001 has shown positive results in Phase 2, with Phase 3 recruitment currently on-going in the US and in Europe.
The transaction is pending final Timber Pharmaceuticals’ shareholder approval and certain other closing conditions before the transaction can be closed, which is expected to happen in the 4th quarter of 2023.
Photo of Christophe Bourdon: LEO Pharma