LEO Pharma inks $760M rare skin disease R&D deal with PellePharm

LEO Pharma has signed a research collaboration deal with PellePharm that commits up to $760 million for late-stage trials and includes an option for LEO to acquire the small rare disease company outright at some point in the future. The deal begins with $70 million in equity financing and R&D support to fund a global phase 3 trial for PellePharm’s patidegib—a hedgehog pathway-inhibiting topical gel for the prevention of Gorlin syndrome, a rare genetic disease that makes people more prone to develop basal-cell carcinomas. In return for a minority stake in the company, PellePharm could receive up to $690 million upon completion of certain regulatory and commercial milestones, in addition to double-digit royalty payments.