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Danish dermatology specialist LEO Pharma and Canada’s KLOX Technologies, both privately-held companies, have entered into a worldwide license and joint venture agreement, excluding Canada, to further develop and commercialize KLOX’s BioPhotonic technology platform in dermatology.
The accord between the companies includes a “European Conformity” CE approved treatment for moderate to severe acne, and LEO Pharma will also make an (undisclosed) equity investment in KLOX.
The deal paves the way for LEO Pharma’s first medical device therapy and first global market entry in acne, the most common skin disease affecting more than 150 million people worldwide. In turn, KLOX has gained global access for its game-changing acne treatment, another significant milestone, as it builds on commercial partnerships to fuel its growth and bring its proprietary and innovative treatments to market in dermatology.
TERMS OF THE GLOBAL LICENSING AGREEMENT FOR DERMATOLOGICALS
Under the terms of the deal, financial terms of which were not revealed, LEO Pharma will be responsible for clinical and commercial activities, including manufacturing. In addition, LEO Pharma will provide financial funding support for KLOX research and product development in dermatology. The financial terms include a significant upfront, as well as a double-digit, escalating, tiered royalty rate based on product sales.
“Today, there is a significant unmet need for alternative acne therapies. With this technology, LEO Pharma aims at soon offering a new treatment solution that is non-invasive and effective. We hope it will enable patients to integrate acne therapy into their everyday lives and successfully manage their condition,” said LEO Pharma chief executive and president Gitte Aabo (pictured).
Lise Hebert, president and chief executive of KLOX, said: “Securing LEO Pharma, a first-class pharmaceutical and dermatology leader with commercial activities in over 100 countries, as our partner further validates our technology and its applicability in multiple therapeutic areas. Together with LEO Pharma, a world leader in delivering solutions to achieve healthy skin, the two companies will aim at developing and commercializing innovative and proprietary BioPhotonic therapies in dermatology with the intent of bringing patients efficacious products with a good safety profile.”
“This deal also represents the completion of a significant step in KLOX’s strategic roadmap aimed at achieving sustainable, commercial profitability in the short to medium term. Gaining global market access for our dermatological treatments through strategic partnerships has enabled us to solidify our position as a leading Canadian specialty biopharmaceutical company. It will also allow us to focus human and financial resources on the development of our promising wound care program, which KLOX plans on commercializing as early as H1 of 2015 in Europe,” added Dr Hebert.
The global agreement, which includes all countries except Canada, also establishes the foundation for future collaboration between LEO Pharma and KLOX in developing new dermatological treatment solutions based on KLOX’s unique and proprietary BioPhotonic platform.