Danish dermatology specialist Leo Pharma is paying $50 million for U.S. gene writing biotech Replay and its preclinical gene therapy for a rare skin disease.
Replay launched in 2022 with $55 million in seed financing and a mission to reprogram biology and author next-generation genomic products. The biotech began life with various tech options to tinker with, including a herpes simplex virus (HSV) gene therapy platform, a hypoimmunogenic platform and a genome writing platform.
Within months of unveiling, Replay spun out its first offshoot in the form of Eudora, an HSV gene therapy company targeting inherited retinal diseases. San Diego-based Replay went on to roll out another three companies in quick succession: rare skin disease-focused Telaria; brain disorder-focused Kaleibe; and cancer-focused Syena.
Now, Leo has decided it wants Replay for itself. The prize is the biotech’s next-generation gene therapy platform and its high-payload HSV delivery vector. Because Replay’s platform of engineered vectors leverages HSV’s unique capacity to deliver large genes, the technology is “particularly well suited to addressing rare, genetically driven dermatological conditions,” Leo said in an April 30 release.
Of particular interest to Leo is a genetically modified HSV therapy that Replay has been working on to treat a rare genetic skin disorder called dystrophic epidermolysis bullosa. The preclinical-stage treatment is formulated as a topical gel that targets the deficient gene when applied directly to the skin, according to this morning’s release.
“Replay’s HSV gene therapy platform holds significant promise for patients with rare genetic skin diseases, and realizing its full potential requires focused expertise in medical dermatology—an area where Leo Pharma brings decades of leadership, scale and proven execution,” Leo CEO Christophe Bourdon said in the release.
“The acquisition aligns with our strategy of investing in the most impactful opportunities in dermatology and positions Leo Pharma at the forefront of next-generation gene therapy,” Bourdon added.
Along with the $50 million upfront payment, Replay will also be eligible for an undisclosed amount in milestone payments and tiered, single-digit royalties if resulting therapies make it to market.
Related
Replay CEO Lachlan MacKinnon said HSV is “uniquely suited to treating rare genetic dermatological conditions” because of its affinity for skin cells and the ability to redose patients.
“Together with Leo Pharma’s decades of dermatology leadership and global infrastructure, purpose-built for skin diseases, we can bring therapies to the patients who need them most and build an enduring dermatology franchise in rare genetic medicine,” MacKinnon added.
Addressing rare diseases has been a central focus of Leo’s Bourdon, who oversaw a deal with Boehringer Ingelheim last year that centered on the German drugmaker’s generalized pustular psoriasis drug Spevigo, worth 90 million euros ($105 million). Through that deal, entrusted Leo to handle further development and commercialization of a treatment for one of the few dermatology diseases that can be fatal. Leo also took on some 40 Boehringer staffers with the deal.
