LEO Pharma Sells Portfolio of Four Products to Cheplapharm

Today, LEO Pharma A/S announced the sale of a portfolio of four non-core products to Cheplapharm for EUR 300 million. The agreement represents a milestone in the roll-out of LEO Pharma's 2030 strategy which increases the company's focus on new innovative solutions for medical dermatology.

The divested portfolio comprises four products within bone disorders/nephrology, dermatology and gynecology: One-Alpha©, Locoid©, Pimafucin©, and Zineryt©. The annual turnover of the portfolio in 2019 amounted to approximately EUR 110 million.

"The divestment is an important step to strategically aligning our portfolio and increasing our focus on innovation in medical dermatology. Patients will be well served by Cheplapharm and we are confident that the company will be the right owner for this portfolio of well-established brands going forward," said Catherine Mazzacco, President and CEO of LEO Pharma.

"We are delighted to seize this unique opportunity to acquire a sizeable portfolio of mature and well-known branded pharmaceuticals from LEO Pharma. The products make a great fit with our existing portfolio in a number of therapeutic areas, and not least, they are characterized by a strong brand legacy, on which we are looking forward to building and expanding our portfolio further," said Sebastian F. Braun, CEO of Cheplapharm.

The transaction is expected to close by December 2020, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals. Following the closing, LEO Pharma and Cheplapharm will work closely together to ensure a smooth and effective transition of the products and business.

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About LEO Pharma

The company is a leader in medical dermatology with a robust R&D pipeline, a wide range of therapies and a pioneering spirit. Founded in 1908 and owned by the LEO Foundation, LEO Pharma has devoted decades of research and development to advance the science of dermatology, setting new standards of care for people with skin conditions. LEO Pharma is headquartered in Denmark with a global team of 6,000 people, serving 92 million patients in 130 countries. For more information about LEO Pharma, visit www.leo-pharma.com.

About Cheplapharm

Cheplapharm is a pharmaceutical company headquartered in Greifswald, Germany, offering branded and niche products in more than 120 countries worldwide. The family-owned company specializes in selected active substances and indications and focuses on an international buy-and-build strategy. Working closely with its business partners, Cheplapharm achieves sustainable annual growth rates. Cheplapharm has been one of the fastest-growing pharmaceutical companies in Europe for years with annual sales of 650 million euros in 2020.

See www.cheplapharm.com.