Leo Pharma Expands Dermatology Portfolio with €90 Million Spevigo Deal

Leo Pharma, the Danish dermatology specialist, has made another significant move in the pharmaceutical industry by acquiring the rights to Spevigo from Boehringer Ingelheim. This €90 million ($105 million) upfront deal marks Leo's second major partnership this year, following a $1.7 billion agreement with Gilead in January.

Spevigo Acquisition: A Strategic Move in Rare Skin Diseases

Leo Pharma will take over the global development and commercialization of Spevigo, a drug approved in 2022 for treating flares associated with generalized pustular psoriasis (GPP). This rare and potentially fatal skin condition has limited treatment options, making Spevigo a valuable addition to Leo's dermatology-focused portfolio.

Christophe Bourdon, Leo Pharma's CEO, emphasized the company's expertise in dermatology as a key factor in the deal: "Boehringer Ingelheim has picked us as the best owner of the asset. Beyond the work they have done, which is tremendous, we can be a better owner through our medical market access, commercial, dermatology-focused expertise."

Expanding Indications and Market Potential

Spevigo, a selective antibody that blocks the IL-36 signaling pathway, is currently available in over 40 countries. Its label was expanded in 2023 to include patients as young as 12 years old. The drug can be used both to treat and prevent GPP flare-ups, with injections administered every four weeks.

Leo Pharma sees significant potential in Spevigo, with Bourdon stating it could become "one of our largest products." The company is also exploring additional indications for the drug, including a phase 3 trial for pyoderma gangrenosum (PG), another rare autoimmune skin condition.

Leo Pharma's Transformation and Future Outlook

This latest acquisition is part of Leo Pharma's ongoing transformation under Bourdon's leadership. The company has shifted its focus to external innovation and streamlined its operations to address previous financial challenges.

Leo's pipeline now includes promising candidates such as the IL-13 eczema treatment Adbry, approved in 2021, and the topical JAK inhibitor delgocitinib, currently under FDA review for chronic hand eczema. The company is also developing early-stage topical therapies in its STAT6 program, complementing its recent deal with Gilead.

Bourdon reflected on the company's progress: "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. And now in less than six months, we have Gilead knocking at your door, we have Boehringer knocking at your door."