LEO Pharma has signed a deal with Ubiquigent, in order to gain access to the protein degradation-focused drug discovery company’s novel compounds.

The companies have confirmed that they are entering in to an option agreement for two novel compounds, a decision that follows on from an earlier agreement between the parties entered into as part of LEO Pharma Open Innovation.

Under the terms of this latest agreement, LEO Pharma will allegedly pay Ubiquigent an upfront fee, followed by a further fee on exercise of the option and potential downstream milestone payments.

The companies initially entered an agreement in 2018 as part of LEO Pharma Open Innovation, with the objective of “evaluating a collection of Ubiquigent’s novel compounds across LEO Pharma’s in-house disease-relevant assays.”

As a result, the companies identified a number of active compounds, two of which will now be subject to the most recent agreement.

LEO Pharma’s vice president of global research, Thorsten Thormann is “very excited” to announce the collaboration, and Ubiquigent’s managing director, Jason Mundin commented that "LEO Pharma Open Innovation has been an excellent way to test hypotheses and uncover new opportunities. We are pleased to be entering into this latest agreement and look forward to following the development of the compounds with our colleagues at LEO Pharma."

As of yet, financial terms of the agreement have not been disclosed.