Leo Pharma Secures Spevigo Rights from Boehringer Ingelheim in €90 Million Deal

Leo Pharma, a Danish dermatology specialist, has announced a significant partnership with Boehringer Ingelheim, acquiring the rights to develop and commercialize Spevigo, a rare disease drug, for €90 million ($105 million) upfront. This deal marks Leo Pharma's second major collaboration this year, following a $1.7 billion agreement with Gilead in January.

Spevigo: A Breakthrough in Rare Skin Disease Treatment

Spevigo, approved in 2022, is the first targeted therapy for generalized pustular psoriasis (GPP), a potentially fatal skin condition. The drug, which blocks the IL-36 signaling pathway, is currently available in over 40 countries and can be used to both treat and prevent flare-ups in patients as young as 12 years old.

Christophe Bourdon, CEO of Leo Pharma, expressed confidence in the acquisition, stating, "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."

Strategic Transformation and Future Prospects

The Spevigo deal is part of Leo Pharma's broader strategy to transform its business and focus on its core strengths in dermatology. The company has been actively reshaping its portfolio, including:

1. A $1.7 billion deal with Gilead for part of its STAT6 transcription factor program.
2. The development of topical JAK inhibitor delgocitinib, currently under FDA review for chronic hand eczema.
3. Continued growth of Adbry, an IL-13 eczema treatment approved in 2021.

Pontoppidan Thyssen, Ph.D., Leo's Chief Scientific Officer, highlighted the potential of Spevigo, saying, "It fits nicely to where we want to go—high unmet need, no available treatment and a transformative treatment that can really help patients."

Challenges and Opportunities

While Leo Pharma has seen recent successes, the company has also faced setbacks. In 2023, a late-stage candidate acquired from Timber Pharmaceuticals for $14 million failed in a phase 3 trial. However, the company remains optimistic about its future, with Bourdon noting the interest from major players like Gilead and Boehringer Ingelheim as validation of their new innovation model.

As Leo Pharma continues to evolve, the acquisition of Spevigo represents a significant step in its mission to address unmet needs in dermatology and solidify its position as a leader in the field.