Danish drugmaker LEO Pharma said on Thursday it had agreed to acquire U.S.-based drug developer Replay for an upfront payment of $50 million, bringing an experimental treatment platform for rare genetic skin disorders into its dermatology portfolio.
The agreement also includes milestone-based payments and tiered single-digit royalties, although the company did not disclose the value of those milestones.
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Replay’s virus design and manufacturing team would join LEO Pharma dermatology portfolio as part of the acquisition, the company added.
“On top of all the pipelines that we have now, we’re entering the promise of gene therapy,” CEO Christophe Bourdon
Replay is developing an experimental gene therapy delivered as a topical gel, using a modified herpes virus to transport genetic material into skin cells.
Its lead candidate is aimed at treating dystrophic epidermolysis bullosa, a rare blistering disorder, and is currently in the preclinical stage.
The acquisition further strengthens LEO Pharma’s focus on rare dermatological conditions, building on its partnership with Boehringer Ingelheim for Spevigo and its research collaboration with DEBRA on epidermolysis bullosa, a condition that causes fragile, easily blistered skin.
“There is a preclinical proof of concept that makes us believe that we can really unfold it into several diseases,” Chief Scientific Officer Jacob Pontoppidan Thyssen
The acquisition comes as the company gears up for a potential stock market listing, making growth-focused deals increasingly important as it seeks to demonstrate future revenue opportunities to investors.
Following a leadership and organizational overhaul four years ago, LEO Pharma has been refining its strategic focus, while improved performance has given it greater flexibility to pursue acquisitions that strengthen its dermatology portfolio.
