LEO US Holding, Inc. entered into a definitive agreement to acquire Timber Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases, for a total transaction value of up to $36 million. The initial upfront consideration of $14 million and up to an additional $22.0 million in contingent value rights (CVRs) is payable upon achievement of certain milestones with respect TMB-001 for the treatment of congenital ichthyosis.

John Koconis, Chairman and Chief Executive Officer of Timber, said, “We are very pleased to deliver a transaction that will maximize long term value for Timber’s 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. LEO’s expertise and global footprint make it the best choice to advance and achieve the full potential of Timber’s 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.