Timber develops and markets therapies to treat rare and orphan dermatologic conditions.
The deal comprises an initial upfront payment of $14 million followed by $22 million in contingent value rights on meeting specified future milestones.
Leo will bolster its medical dermatology pipeline by gaining rights to a late-stage investigational product candidate of Timber, TMB-001 — a new formulation of the active ingredient isotretinoin for topical use. It is intended for the treatment of congenital ichthyosis, a rare skin condition.
The U.S. Food and Drug Administration previously granted orphan and breakthrough designations for the asset. A decision on approval is anticipated in 2025.
John Koconis, chairman and CEO of Timber, said: “We are very pleased to deliver a transaction that will maximize long term value for Timber’s shareholders. LEO Pharma is a leader in global dermatology with a mission that matches our own — a relentless pursuit to help patients suffering from skin diseases.
“LEO’s expertise and global footprint make it the best choice to advance and achieve the full potential of Timber’s 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.”
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the fourth quarter of 2023.
Lowenstein Sandler LLP is serving as legal counsel to Timber. Covington & Burling LLP is serving as legal counsel to LEO Pharma.