Business News: LEO Pharma to Acquire Timber Pharmaceuticals

August 21, 2023

Timber Pharmaceuticals’ lead investigational product candidate, TMB-001, is a topical reformulation of isotretinoin, which is aimed at treating congenital ichthyosis.

LEO Pharma is set to acquire Timber Pharmaceuticals, Inc. 

The deal represents a total transaction value of up to $36 million with an initial upfront consideration of $14 million, and  up to an additional $22.0 million in contingent value rights payable upon achievement of certain milestones.  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.

Timber Pharmaceuticals’ lead investigational product candidate, TMB-001, is a topical reformulation of the active ingredient, isotretinoin, which is aimed at treating congenital ichthyosis.

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.

“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,” says Christophe Bourdon, CEO of LEO Pharma, in a news release. “ 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.”

John Koconis, Chairman and Chief Executive Officer of Timber Pharmaceuticals, adds, “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.”

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