LEO Pharma’s 117-year, single-focus strategy

Anne Jensen, Vice President of Strategy at LEO Pharma

Focuses on medical dermatology based on expertise in topical treatments for skin diseases

Company enters clinical trials to expand indications for Anzupgo... Accelerates innovation through open innovation

LEO Pharma is a representative symbol of the success of the Danish biotech industry.

 

It is the oldest pharmaceutical company in Denmark, celebrating its 117th anniversary this year.

 

Originally founded as a pharmacy in Copenhagen, Denmark, the company has grown based on its philosophy of standardizing the quality of medicines and supplying them to everyone.

 

LEO Pharma is recognized as a world-class expert in the development of topical medications such as creams, ointments, gels, and foams that are applied directly to the skin.

 

The wound treatment drug Fucidin, sold by Dong Wha Pharmaceutical in Korea, is LEO Pharma's flagship product.

 

The company has also built a solid portfolio of skin disease treatments, including the psoriasis treatments Enstilum Foam and Xamiol, the non-steroidal atopic dermatitis treatment Protopic, and the eczema treatment Advantan.

 

The reason LEO Pharma has been able to establish itself as a globally respected specialty pharmaceutical company lies in its long-term strategy of selection and concentration.

 

Leveraging its expertise in topical formulations for dermatological conditions, LEO Pharma has remained focused on the field of medical dermatology.

 

This sets it apart from many other companies that prioritize diversifying their drug pipelines and generating quick profits.

 

How has LEO Pharma been able to survive in the global market for over 100 years by pursuing a “single-focus strategy” on a single disease group?

 

Anne Jensen, Vice President of Strategy at LEO Pharma’s headquarters in Ballerup, Denmark, explained that the answer lies in Denmark's unique foundation-centered governance structure.

 

LEO Foundation is the largest shareholder of LEO Pharma with approximately 80% of the shares.

 

The remaining 20% is held by Swedish private equity fund Nordic Capital.

 

Jensen explained that the company was able to consistently invest in specialized areas such as dermatological treatments — which are often difficult to profit from in the short term — because it was shielded from short-term performance pressures and external investor influence.

 

Under the control of the Leo Foundation, which values sustainability over short-term profits, LEO Pharma was able to boldly introduce external innovations and invest in technology.

 

LEO Pharma entered the biopharmaceutical market in earnest in 2016 after acquiring tralokinumab, a candidate drug for the treatment of moderate-to-severe atopic dermatitis from AstraZeneca.

 

LEO Pharma aims to continue building a sustainable growth foundation in the medical dermatology market by pursuing a strategy of securing both internal and external technologies.

 

Anne Jensen, Vice President of Strategy at LEO Pharma

- What factors have contributed to LEO Pharma's growth into a global pharmaceutical company specializing in dermatology? LEO Pharma's growth over the past few years has been driven by the success of its atopic dermatitis treatment, Adtralza.

 

This medication, which contains the active ingredient tralokinumab and works by inhibiting IL-13, has significantly strengthened the company’s position in the medical dermatology field.

 

Moving forward, the company plans to drive future growth by leveraging ‘Anzupgo,’ a topical JAK inhibitor for the treatment of chronic hand eczema.

 

Anzupgo is currently available in seven European countries and is awaiting approval under the Prescription Drug User Fee Act (PDUFA) in the United States.

 

- What are LEO Pharma's priorities in terms of expanding its current treatment areas and pipeline? LEO Pharma has established itself as a global leader in medical dermatology.

 

The company is currently focusing on diseases with high unmet medical needs and is pursuing a strategy of jointly developing innovative technologies with partners.

 

Our goal is to leverage the company’s development and commercialization capabilities after introducing new technologies to create maximum value for both patients and companies.

 

For example, we recently began clinical trials to expand the indications for Anzupgo to include palmoplantar pustulosis (PPP) in addition to chronic hand eczema.

 

-What is your outlook for the future of immunology-based skin disease treatments? Over the past 10 to 15 years, the key change in skin disease treatment has been the introduction of immunotherapies.

 

Biologics such as Adtralza, developed by LEO Pharma, have opened up new horizons in the treatment of skin diseases.

 

In the past, skin diseases were considered relatively minor conditions, but now their impact on quality of life is being properly recognized.

 

Skin diseases include more than 1,000 disease groups, and more than 90% of them have no approved treatments.

 

With the advancement of biologics, we predict that the expansion into new disease groups such as atopic dermatitis, psoriasis, and chronic urticaria will accelerate.

 

Our company believes that it can maintain its differentiated positioning based on its agility as a mid-sized pharmaceutical company and its expertise in dermatology by focusing on neglected disease groups that are not addressed by big pharma.

 

-What is LEO Pharma's core strategy in terms of open innovation? We aim to create a “network-based open innovation model.” This strategy involves introducing or jointly developing external assets that have the potential to generate the highest profits for LEO Pharma and provide benefits to patients.

 

From our perspective, this is why it is essential to collaborate with various stakeholders, including academia, patient groups, biotech companies, and pharmaceutical companies.

 

Last year alone, we signed one collaboration agreement each with the Parker Institute and Debra Research, which we expect to play an important role in LEO Pharma's growth.

 

The joint development agreement for STAT6 inhibitors that we signed with Gilead is one of the largest preclinical deals in the industry, with an upfront payment of USD 250 million and a total contract value worth USD 1.7 billion.

 

-What are your thoughts on the Asia-Pacific market that includes South Korea?

 

We are very positive about South Korea and the Asia-Pacific market.

 

South Korea has world-class biotechnology, research capabilities, and an innovative ecosystem, providing an ideal environment for partnerships.

 

We have been covering Korea’s market through excellent distribution partners in South Korea.

 

From a broader perspective of the Asian market, we believe that there are significant opportunities in this region as demand for advanced skin disease treatments is increasing.

 

In fact, China is LEO Pharma's second-largest partner, and we also have a strong local presence in Japan.

 

LEO Pharma plans to further strengthen its position in Asia.

 

- Are there any plans to collaborate with Korean biotech companies, hospitals, or academia?

 

Although we cannot disclose any specific details at this stage, LEO Pharma is always open to opportunities for collaboration with leading Korean companies, hospitals, and institutions.

 

Given Korea's strong reputation in innovation and biotechnology, we believe there is great potential for collaboration.

 

- Does LEO Pharma have any principles that it adheres to in relation to new drug development?

 

Many of the more than 1,000 skin diseases still lack adequate treatment.

 

We believe that innovation requires collaboration, and we are committed to building partnerships with pharmaceutical companies, biotechnology companies, academia, the medical community, and patient organizations.

 

In particular, LEO Pharma is seeking solutions for patients with skin diseases around the world in collaboration with various partners based on five core values: integrity, customer focus, innovation, passion, and adaptability.