LEO Pharma A/S and KLOX Technologies Inc. have entered into a worldwide license and joint venture agreement, excluding Canada, to further develop and commercialize KLOX's BioPhotonic technology platform in dermatology, which includes a CE-approved treatment for moderate to severe acne. LEO Pharma will also make an equity investment in KLOX.

The deal paves the way for LEO Pharma's first medical device therapy and first global market entry in acne, and offers KLOX global access for its acne treatment.

The non-abrasive, non-thermal CE approved acne treatment comprises a multi-LED light used in conjunction with a photoactivable converter gel. It works by targeting the underlying problems that lead to acne vulgaris, as well as stimulating collagen synthesis and healing in traumatized skin, thereby promoting healing in the epidermis and deeper in the dermis. This is accomplished in a non-invasive manner. Completed within a 15-minute treatment cycle including preparation, treatment requires twice-weekly application over six weeks and in clinical trials the acne BioPhotonic system demonstrated highly statistically significant improvements in moderate to severe acne sufferers.

The global agreement, which includes all countries except Canada, also establishes the foundation for future collaboration between LEO Pharma and KLOX in developing new dermatological treatment solutions based on KLOX's unique and proprietary BioPhotonic platform.

Under the terms of the agreement, LEO Pharma will be responsible for clinical and commercial activities, including manufacturing. In addition, LEO Pharma will provide financial funding support for KLOX research and product development in dermatology. The financial terms include a significant upfront, as well as a double-digit, escalating, tiered royalty rate based on product sales.

"Today, there is a significant unmet need for alternative acne therapies. With this technology, LEO Pharma aims at soon offering a new treatment solution that is non-invasive and effective. We hope it will enable patients to integrate acne therapy into their everyday lives and successfully manage their condition," says LEO Pharma CEO and President Gitte Aabo. "This deal reflects our increased commitment to strategic partnerships, a key driver in strengthening LEO Pharma's position as a global leader in dermatology. By partnering with innovative companies like KLOX, LEO Pharma aims to push the boundaries of dermatology care and deliver more treatment solutions that make a real difference to the lives of people with skin diseases."

Dr. Lise Hébert, President and CEO of KLOX states: "Securing LEO Pharma, a first-class pharmaceutical and dermatology leader with commercial activities in over 100 countries, as our partner further validates our technology and its applicability in multiple therapeutic areas. Together with Leo Pharma, a world leader in delivering solutions to achieve healthy skin, the two companies will aim at developing and commercializing innovative and proprietary BioPhotonic therapies in dermatology with the intent of bringing patients efficacious products with a good safety profile."  

"This deal also represents the completion of a significant step in KLOX's strategic roadmap aimed at achieving sustainable, commercial profitability in the short to medium term. Gaining global market access for our dermatological treatments through strategic partnerships has enabled us to solidify our position as a leading Canadian specialty biopharmaceutical company. It will also allow us to focus human and financial resources on the development of our promising wound care program, which KLOX plans on commercializing as early as H1 of 2015 in Europe," added Dr. Hébert.