BRISBANE dermatology company Peplin has announced a definitive merger agreement whereby LEO Pharma (LEO) will acquire all outstanding securities of Peplin for approximately US$287.5 million (currently A$348.4 million) in cash.
This represents a purchase price of US$16.99 per common share of Peplin stock or A$1.03 per Peplin 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 Board of Directors 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’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 III AK clinical trials by the end of this year.
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.
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