LEO Pharma has officially announced a strategic move to acquire Timber Pharmaceuticals, Inc., a company listed on the NYSE American under the ticker symbol TMBR. This acquisition is poised to enrich LEO Pharma's medical dermatology pipeline with a valuable late-stage asset. The completion of this transaction, however, hinges on certain stipulated closing conditions, including the requisite approval from Timber Pharmaceuticals' shareholders.

The financial aspects of the deal involve a total potential transaction value of up to $36 million. This comprises an initial upfront payment of $14 million along with the possibility of an additional $22.0 million through contingent value rights (CVRs), contingent upon the successful achievement of specific milestones.

Timber Pharmaceuticals' primary investigational product candidate, TMB-001, represents a topical reformulation of isotretinoin – a key active ingredient. This reformulation is geared towards addressing congenital ichthyosis, a rare skin condition characterized by a notable lack of effective prescription treatments.

Isotretinoin, currently existing in oral form within the U.S., has been ingeniously reformulated into TMB-001. This reformulated version has earned special recognition from the FDA through orphan and breakthrough designations. An action date as early as mid-2025 is on the horizon for TMB-001, which has already demonstrated encouraging results in its Phase 2 trial. Presently, Phase 3 recruitment is underway in both the U.S. and Europe.

LEO Pharma's CEO, Christophe Bourdon, expressed enthusiasm for the acquisition, stressing its alignment with the company's strategic objectives. The addition of Timber Pharmaceuticals' asset strengthens LEO Pharma's dermatology pipeline and bolsters their presence in the U.S. market. Importantly, it offers a promising avenue to address the pressing medical needs of individuals grappling with an untreated ailment.

John Koconis, Chairman and CEO of Timber Pharmaceuticals, underscored the value of the transaction for shareholders. The alignment between LEO Pharma's mission and Timber Pharmaceuticals' goals holds potential for meaningful advancements in the field of dermatology. LEO's expertise and expansive global reach position them well to fully realize the potential of Timber Pharmaceuticals' product lineup, especially TMB-001, which has the potential to redefine care standards for congenital ichthyosis.

Completion of the acquisition rests upon Timber Pharmaceuticals' shareholder approval and fulfillment of specific closing conditions. Anticipated for the fourth quarter of 2023, this transaction marks a significant step towards realizing both companies' missions.

Timber Pharmaceuticals, Inc. is actively engaged in the development and commercialization of treatments for rare dermatologic diseases. Their focus extends to non-systemic treatments for conditions like congenital ichthyosis and sclerotic skin diseases.

LEO Pharma, a global leader in dermatology, stands dedicated to elevating the care landscape for individuals with skin conditions. Established in 1908, the company is backed by the LEO Foundation and boasts a robust track record in dermatological research and development. With a global team of around 4,600 professionals, LEO Pharma serves millions of patients worldwide, delivering a diverse range of therapies across disease severities. In the fiscal year 2022, the company reported net sales of DKK 10.6 billion.

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