LEO Pharma to Acquire Peplin for $287.5 million

Peplin, Inc today announced a merger agreement whereby LEO Pharma A/S (LEO), a privately-held, leading global pharmaceutical company within Dermatology and Critical care, will acquire all outstanding securities of Peplin for approximately $287.5 million (currently A$348.4 million) in cash.

This deal represents a purchase price of $16.99 per common share of Peplin stock or A$1.03 per Peplin CHESS Depositary Interest (CDI).

In addition, LEO will provide Peplin with access to a loan facility to fund ongoing operations until the transaction closes, which is expected to occur by the end of the calendar year.

The board of directors of both companies unanimously approved the transaction. MPM Capital and GBS Venture Partners, two of Peplin's largest stockholders, along with Peplin's directors and executive officers have also agreed to vote in favour of the transaction.

The transaction is subject to approval of Peplin's stockholders and other customary closing conditions. Stockholder proxy materials will be distributed, and a stockholder meeting scheduled to approve the transaction, following any US Securities and Exchange Commission review of the proxy materials.

Peplin chairman and CEO Tom Wiggans said, ''We are very proud of the accomplishments of the entire Peplin team over the past several years to advance our lead candidate PEP005 Gel for actinic keratosis through to near completion of phase 3 clinical trials.''