Warren-based Timber Pharmaceuticals announced it is being acquired by LEO Pharma, a Danish-based global company focused on treating skin conditions.

The terms of the $36 million deal, announced earlier in August, include $14 million upfront and an additional $22 million contingent on achieving certain milestones.

Timber is a clinical-stage biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases.

One of its most notable products in development is TMB-001, a late-stage topical reformulation of the active ingredient, isotretinoin – a rare skin disease with no approved prescription therapies available.

“We are very pleased to deliver a transaction that will maximize long-term value for Timber Pharmaceuticals‘ shareholders. LEO Pharma is a leader in global dermatology with a mission that matches our own – a relentless pursuit to help patients suffering from skin diseases,” said John Koconis, chairman and CEO of Timber Pharmaceuticals. “LEO’s expertise and global footprint make it the best choice to advance and achieve the full potential of Timber Pharmaceuticals’ portfolio of product candidates. We believe that LEO has the potential to establish TMB-001 as the standard of care in the treatment of congenital ichthyosis, a devastating, rare disease.”

LEO Pharma noted that TMB-001 was at the center of the acquisition.

The TMB-001 reformulation has received an orphan and breakthrough designation by the U.S. Food and Drug Administration and is on track with an action date as early as mid-2025. It has also shown positive results in Phase 2, while Phase 3 recruitment is ongoing in the U.S. and Europe.

In a press release, LEO Pharma CEO Christophe Bourdon said that signing this agreement to acquire Timber and TMB-001 marked a next step in executing the company’s strategy.

“We will add an attractive late-stage asset to our medical dermatology pipeline and strengthen our team in the U.S.,” said Bourdon. “And most importantly, we will add an asset with promising outlook to be able to help patients suffering from a debilitating disease that today have no proper treatment options.”

The acquisition, which is subject to Timber shareholder approval and other conditions, is expected to close in the fourth quarter of this year.

Lowenstein Sandler LLP is serving as legal counsel to Timber; Covington & Burling LLP is serving as legal counsel to LEO Pharma.