Tanabe Pharma Enters Agreement with LEO Pharma to Sell Therapy to Increase Pain-Free Light Exposure

Ropes & Gray advised Tanabe Pharma Corporation in entering an agreement to sell dersimelagon, an oral therapy designed to increase pain-free sunlight exposure, to LEO Pharma. The transaction was announced on August 18.

Under the agreement, Tanabe Pharma will receive up to $435 million in up front and near-term milestone payments together with downstream milestones and tiered royalties on sales. The proceeds from the agreement will be reinvested by Tanabe Pharma in Japan to expand the company’s pipeline through business development and R&D.

Developed by U.S. subsidiary Tanabe Pharma America Inc., dersimelagon (MT-7117), a selective melanocortin-1 receptor (MC1R) agonist that aims to increase melanin in the skin, is being developed for the oral treatment of adult and adolescent patients with erythropoietic protoporphyria (EPP) and X-linked protoporphyria (XLP).  EPP and XLP are rare hereditary disorders of the heme biosynthetic pathway that are characterized by severe pain in the skin upon exposure to sunlight and some forms of artificial light. Dersimelagon has been granted Fast Track designation and Orphan Drug designation by the U.S. Food and Drug Administration.

Tanabe Pharma America has submitted a New Drug Application (NDA) to the FDA for dersimelagon for the treatment of EPP and XLP. Tanabe Pharma will continue its efforts toward obtaining approval in the U.S. In addition, the ongoing clinical trials will continue and are expected to be transferred to LEO Pharma at an appropriate stage.

The Ropes & Gray team was led by mergers & acquisitions partner Emily Oldshue and life sciences licensing partner Abby Gregor, and included life sciences licensing associate Evan Tallmadge and mergers & acquisitions associate Debbie Wang.  The team also included life sciences regulatory partner Josh Oyster, tax partners Zhen Zhang and Pam Glazier, health care partner David Peloquin and antitrust partner Mike McFalls.