Share price today is what it is.

For the future we have situations like the below. Hot off the press.

LEO Pharma has signed a research collaboration deal with PellePharm that commits up to $760 million for late-stage trials and includes an option for LEO to acquire the small rare disease company outright at some point in the future.

The deal begins with $70 million in equity financing and R&D support to fund a global phase 3 trial for PellePharm’s patidegib—a hedgehog pathway-inhibiting topical gel for the prevention of Gorlin syndrome, a rare genetic disease that makes people more prone to develop basal-cell carcinomas.

In return for a minority stake in the company, PellePharm could receive up to $690 million upon completion of certain regulatory and commercial milestones, in addition to double-digit royalty payments.

Blah blah blah. Heard it all before but folks that is the good thing. Gorlin syndrome is rare. Acne and dermatitis are not.

That is what I like about us.

A bit about Leo - who are big in the dermatitis/psoriasis camp.

LEO Pharma Australia

In 2009 LEO Pharma A/S acquired Peplin Operations Pty Ltd a Queensland based small biotech company.

In early 2011 LEO Pharma in Australia reacquired its psoriasis portfolio from CSL. On July 1st 2011 LEO Pharma Pty Ltd launched its own commercial operation around the country, including full sales, marketing and medical support for this portfolio.

LEO Pharma has a manufacturing site on the Gold Coast in Queensland providing the active ingredient for one of LEO Pharma’s products to Australia and the rest of the world.

LEO Pharma in Australia is also a key hub conducting on-going Research and Development and clinical studies on the LEO Pharma product portfolio.

LEO Pharma in Australia is committed to the vision and mission of LEO Pharma globally. We are also committed to being patient focused.

Now in Oz Leo sell a few items

-Enstilar foam containing a Vitamin D derivative and a steroid.

-Daivobet gel and ointment - containing same calcipotriol and betamethsone.

These three items are extremely popular in Australia so much so that Enstilar goes out of stock at times. Demand exceeds supply.

Competition would be an interesting thing for other pharmas not only in our 3% of the worlds drugs,  but elsewhere as well. Paying a $50million bounty to a small company ready to go into phase 3 seems a reasonable idea down the track. Furthermore this sort of money is chicken feed when compared to the monoclonal antibody type of deals going on.