Leo Pharma Reports Strong Growth, Expands Portfolio with New Dermatology Treatments

Leo Pharma, the Danish dermatology specialist, has reported significant growth in its first-half results for 2025, driven primarily by strong performance in the United States market. The company has also made strides in expanding its product portfolio, securing key approvals for novel treatments in chronic hand eczema and generalized pustular psoriasis.

US Market Drives Revenue Growth

Leo Pharma announced a 6% year-over-year increase in overall sales for the first half of 2025, with North American operations showing an impressive 28% growth. This contrasts sharply with the more modest 1% growth at constant exchange rates seen in Europe. The company's atopic dermatitis treatment, Adbry, has been a key driver of this growth, particularly in the US and Japanese markets.

The strong performance has led Leo Pharma to narrow its 2025 guidance positively, projecting full-year revenue growth of 7% to 9%, up from the previous estimate of 6% to 9%. This adjustment reflects both the company's year-to-date business performance and recent regulatory approvals.

Expansion of Dermatology Portfolio

In a significant development for the company, Leo Pharma received FDA approval for Anzupgo, making it the first treatment in the United States specifically approved for chronic hand eczema (CHE). The drug had already been endorsed in Europe in September 2024, with its launch in Germany driving an increase in non-steroidal prescriptions for CHE.

Leo Pharma has initiated an advertising campaign in the US to differentiate CHE from general eczema, aiming to tap into a potentially underserved patient population. The company believes there is significant potential for a treatment designed specifically for CHE, as opposed to general eczema therapies.

Further expanding its dermatology portfolio, Leo Pharma recently acquired development and commercial rights to Boehringer Ingelheim's Spevigo for 90 million euros. Spevigo is used to treat flares associated with generalized pustular psoriasis, a rare skin disease.

Strategic Transformation Under New Leadership

These developments are part of a broader transformation strategy implemented by CEO Christophe Bourdon since he took the helm in 2022. The company has reduced its workforce from over 6,000 employees at the start of the decade to about 4,000 in the second quarter of 2025. Despite this reduction, revenues have increased from 10.13 billion Danish kroner in 2020 to 12.45 billion Danish kroner in 2024.

Leo Pharma has shifted its focus towards external innovation and increasing its presence in the US market. This strategy is exemplified by the recent deal with Gilead Sciences, potentially worth up to $1.7 billion, in which Leo surrendered part of its preclinical STAT6 research program.

As part of its long-term strategy, Leo Pharma, currently a private company, has announced plans to go public by the end of 2027. This move is expected to further support the company's growth and transformation efforts in the coming years.