Leo Pharma invests in PellePharm to develop rare skin disease therapy

Dermatology company Leo Pharma A/S (Ballerup, Denmark) gained an option to acquire PellePharm Inc. (Menlo Park, Calif.) and will help fund development of PellePharm's patidegib to treat rare skin cancer Gorlin syndrome.

PellePharm will receive $70 million up front composed of equity financing and R&D funding for a global Phase III trial of topical patidegib (saridegib, IPI-926) to treat nevoid basal cell carcinoma syndrome, also known as Gorlin syndrome. PellePharm plans to begin the trial next quarter. The company is eligible for $690 million in milestones and merger consideration, plus double-digit royalties. ...