LEO Pharma has acquired Replay, a herpes simplex virus (HSV) gene therapy platform, for $50 million upfront, expanding its presence in rare dermatology. The deal also includes milestone payments and tiered single-digit royalties.
This viral gene therapy uses engineered HSV to deliver large therapeutic genes directly to skin cells. The treatment is formulated as a topical gel targeting genetic deficiencies at their source.
Christophe Bourdon, CEO of LEO Pharma, said: “Replay’s HSV gene therapy platform holds significant promise for patients with rare genetic skin diseases, and realising its full potential requires focused expertise in medical dermatology.” The company used an AI-powered scouting platform to identify Replay as a high-potential opportunity.
The lead drug candidate is in preclinical studies for dystrophic epidermolysis bullosa (DEB), a rare genetic condition causing fragile skin, blistering, chronic wounds, and increased skin cancer risk.
Lachlan MacKinnon, CEO of Replay, noted that HSV’s natural tropism for skin cells and ability to administer repeat doses makes it well-suited for treating rare genetic dermatological conditions.
Martin Steiner, Managing Director of DEBRA Research, added: “Dystrophic epidermolysis bullosa remains one of the most devastating genetic skin diseases with significant unmet need. Pairing Replay’s HSV gene therapy platform with LEO Pharma’s dermatology expertise is exactly the kind of combination the DEB community needs.”