Denmark’s LEO Pharma, U.S. PellePharm form $760 mln D&C alliance

Danish pharmaceutical company LEO Pharma has partnered with U.S.-based biotechnology company PellePharm to form a strategic development and commercialization (D&C) alliance.

Under the terms of the deal, LEO Pharma initially committed $70 million comprised of equity financing and financial research and development support to fund the global phase 3 trial for patidegib topical, with LEO Pharma securing an option to acquire all shares in PellePharm. PellePharm and its stockholders could receive up to another $690 million including merger consideration.

As part of the deal, the companies will address medical needs across various skin diseases with no approved treatments, advancing innovation and access to potential therapies for patients with life-altering conditions, such as Gorlin Syndrome and High-Frequency Basal Cell Carcinoma, two distinct and rare forms of skin cancer.

LEO Pharma and PellePharm will jointly drive commercialization planning, in conjunction with the move, LEO Pharma will join PellePharm’s board of directors. The alliance puts LEO Pharma on track to commence its pivotal phase 3 Gorlin Syndrome trial in early 2019.