LEO Pharma to Acquire Peplin for $287.5 million

Denmark-based Leo Pharma will acquire all outstanding securities of Peplin, a US firm with operations in Australia, for around $287.5 million (currently A$348.4 million) in cash. This represents a purchase price of $16.99 per common share of Peplin stock or A$1.03 per CHESS Depositary Interest (CDI).

In addition, LEO will provide Peplin with access to a loan facility to fund ongoing operations until the transaction closes, which is expected to occur by the end of the calendar year. The boards of both companies unanimously approved the transaction. MPM Capital and GBS Venture Partners, two of Peplin's largest stockholders, along with Peplin's directors and executive officers have also agreed to vote in favour of the transaction.

The transaction is subject to approval of Peplin's stockholders and other customary closing conditions.

Peplin chief executive Tom Wiggans said: 'We are especially delighted to enter into this agreement with LEO, a globally recognized dermatology leader. We are very proud of the accomplishments of the entire Peplin team over the past several years to advance our lead candidate PEP005 Gel for actinic keratosis through to near completion of Phase 3 clinical trials. We are pleased LEO recognizes the potential of PEP005 Gel as an innovative product for the treatment of actinic keratoses and other skin diseases.'

LEO Pharma chief executive Gitte Aabo said: 'The agreement to acquire Peplin fits extremely well with our ambition of staying in the global lead within dermatology. We are truly impressed with the amount of work and dedication that the people at Peplin have tied into this project.'

Peplin's lead product candidate, PEP005 Gel is currently in Phase III clinical trials for actinic (solar) keratosis (AK), a common pre-cancerous skin lesion, on both head and non-head locations. Peplin plans to complete Phase 3 AK clinical trials by the end of this year. Results from its first Phase III trial, REGION-I, were announced in May 2009. Peplin plans to file a New Drug Application in mid-2010. Peplin also has a Phase II clinical trial ongoing for PEP005 Gel in superficial basal cell carcinoma and preliminary data in squamous cell carcinoma and cutaneous warts.