Timber Pharmaceuticals' primary investigational product candidate, known as TMB-001, is a topical reformulation of isotretinoin, the active ingredient
LEO Pharma to buy Timber Pharmaceuticals for $36m. (Credit: Gerd Altmann from Pixabay)
LEO Pharma has agreed to acquire Timber Pharmaceuticals, a company listed on US stock exchanges, to advance its medical dermatology pipeline.
The successful completion of the acquisition is contingent upon fulfilling specific closing conditions, including but not limited to obtaining shareholder approval from Timber Pharmaceuticals.
This transaction is valued at a total of up to $36m, composed of an initial upfront payment of $14m. Additionally, there is potential for an additional $22m through contingent value rights (CVRs) that will be paid upon the accomplishment of certain predefined milestones.
Timber Pharmaceuticals’ primary investigational product candidate, known as TMB-001, is a topical reformulation of isotretinoin, the active ingredient. This reformulation is intended for the treatment of congenital ichthyosis, a rare skin disorder characterised by substantial unmet medical needs and a lack of approved prescription treatments.
Currently, isotretinoin is only available in oral form in the U.S. However, the reformulated version, TMB-001, has gained orphan and breakthrough designations from the FDA. This reformulation process is well underway, with a potential action date expected as early as mid-2025. Encouraging results have been demonstrated in Phase 2 trials, and Phase 3 recruitment is presently underway both in the US and Europe.
LEO Pharma CEO Christophe Bourdon said: “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 that today have no proper treatment options.”
Timber Pharmaceuticals chairman and CEO John Koconis said: “We are very pleased to deliver a transaction that will maximise long-term value for Timber Pharmaceuticals’ shareholders.
“LEO Pharma is a leader in global dermatology with a mission that matches our own – a relentless pursuit to help patients suffering from skin diseases.
“LEO’s expertise and global footprint make it the best choice to advance and achieve the full potential of Timber Pharmaceuticals’ portfolio of product candidates.
“We believe that LEO has the potential to establish TMB-001 as the standard of care in the treatment of congenital ichthyosis, a devastating, rare disease.”
The completion of the transaction is contingent upon obtaining the final approval of Timber Pharmaceuticals’ shareholders, as well as meeting specific other closing conditions. This process is expected to conclude in the fourth quarter of 2023.