Dermatology specialist Leo Pharma has struck a transfer deal with Boehringer Ingelheim, paying 90 million euros ($105 million) up front for rare disease drug Spevigo, which was approved in 2022.
For the second time this year, Leo Pharma has struck a partnership with a major drugmaker, this time paying Boehringer Ingelheim 90 million euros ($105 million) up front for the rare disease drug Spevigo.Specializing in dermatology, Denmark-based Leo is well equipped to take control of Spevigo, which treats flares that accompany generalized pustular psoriasis (GPP), a skin condition so debilitating that it can become fatal.With the transfer agreement, Leo will take responsibility for the development and commercialization of Spevigo around the world. The companies, which are both private, did not reveal full terms of the agreement, though we do know Leo is on the hook for undisclosed milestone and royalty payments.The transaction comes on top of Leo signing a $1.7 billion deal back in January with Gilead, in which it got $250 million up front for part of its STAT6 transcription factor program.In adding and subtracting assets, Leo is transforming its business, trying to zero in on what it does best.“Boehringer Ingelheim has picked us as the best owner of the asset,” Bourdon told Fierce Pharma. “Beyond the work they have done, which is tremendous, we can be a better owner through our medical market access, commercial, dermatology-focused expertise.” Spevigo was approved in 2022 and gained a label expansion last year to treat patients as young as age 12. It is currently available in more than 40 countries and can be used to both treat flare-ups and to prevent them, with injections every four weeks.The selective antibody, which blocks the activation of the IL-36 signaling pathway, is the first targeted therapy for the treatment of GPP. While sales figures are not available, Bourdon said that Spevigo has the potential to become “one of our largest products.”“(Boehringer) has built this medical, commercial footprint globally but they also realized that we at Leo do only one thing, which is to interact with dermatologists,” Bourdon said. “We came up with a plan where they were confident that we could create more value with the asset.”Spevigo is under investigation in a pivotal phase 3 trial in another rare autoimmune skin condition, pyoderma gangrenosum (PG), which causes painful ulcers.“It fits nicely to where we want to go—high unmet need, no available treatment and a transformative treatment that can really help patients,” Leo’s Chief Scientific Officer Pontoppidan Thyssen, Ph.D., added in the interview. “It’s worth a shot on goal.” One shot on goal that was off the mark was Leo’s 2023 buyout of Timber Pharmaceuticals and its late-stage candidate for another rare dermatological condition for $14 million. In August of last year, the company revealed that the asset had flunked a phase 3 trial.Bourdon came to Leo three years ago when it was in dire financial straits and in need of a slim down. The company reduced its costs and adjusted its innovation model, pursuing external innovation as opposed to its long-held focus on internal R&D.For now, the company is depending on the growth of IL-13 eczema treatment Adbry, which was approved in 2021, and the progression of topical JAK inhibitor delgocitinib, which is under review by the FDA as a treatment for chronic hand eczema. In earlier-stage development are topical therapies that Leo is developing in its STAT6 program. In making its deal with Gilead in January, Leo held onto those candidates while the California company is placing a bet on its ability to develop oral STAT6 therapies for inflammatory diseases as an alternative to injectable biologics such as Regeneron and Sanofi’s Dupixent and AbbVie’s duo of Rinvoq and Skyrizi.“Three years ago, two years ago, when we talked about transforming the company, about inventing a new innovation model, I think it was a wild ambition,” Bourdon said. “And now in less than six months, we have Gilead knocking at your door, we have Boehringer knocking at your door.”