Exclusive Interview with LEO Pharma Global Management Team: Accelerating Innovation in China

Only a year after their last visit, LEO Pharma's Global CEO Christophe Bourdon and Global Executive Vice President Becki Morison have returned to China, accompanied by LEO Pharma's global board and management team. 

This time, they planned a week-long visit to deepen their understanding of the Chinese market and even held a global board meeting there. 

Since taking over as CEO in 2022, Bourdon has led the 116-year-old Danish dermatology-focused pharmaceutical company through a sweeping transformation. He has restructured the company's capital, planning to take LEO Pharma public within 4 to 5 years, aiming to rapidly address key market needs and unmet clinical demands through a new innovation-driven growth model. 

In 2023, LEO Pharma reduced global operating costs by 14% while increasing global revenue by 7%, with an 8% rise in China. Both Bourdon and Morison see vast potential in China for accelerating LEO Pharma's innovation-driven growth, thus reinforcing their commitment to investment in the Chinese market.

Christophe Bourdon, Global CEO of LEO Pharma (left), and Becki Morison, Global Executive Vice President of LEO Pharma (right)

Recently, in an exclusive interview with PharmaCube, Bourdon and Morison shared insights into LEO Pharma’s commitment to China and its development strategy within an innovation-driven growth model.

Climbing to the Top Tier, Accelerating Innovation in China

On May 7, 2024, LEO Pharma announced positive Phase III clinical trial results in China for Enstilar® in adult patients with stable plaque psoriasis, demonstrating superior efficacy over Daivobet® (calcipotriol and betamethasone ointment) in primary and dual secondary endpoints. 

Based on these results, LEO Pharma submitted a marketing application for Enstilar® in China, which has been accepted by the NMPA. "The superior efficacy results of Enstilar® are exciting progress. We observed not only efficacy but also strong tolerability for this combination product. This trial exemplifies LEO Pharma’s use of its deep dermatology expertise to expand our core product portfolio and innovation in China," Morison explained.

The Phase III trial for Enstilar® completed patient recruitment four months ahead of schedule, achieving positive results, closely linked with LEO Pharma's strategy to raise China’s importance in its global strategic landscape.

“China is now in the ‘top tier’ alongside the U.S. and EU in our global strategy,” Bourdon noted. “We see significant growth opportunities in China and continue to increase investment and accelerate clinical development of innovative products like Enstilar® to meet unmet clinical needs through an optimized product portfolio.”

Enstilar® is just one example of LEO Pharma's accelerated innovation in China. Since entering the Chinese market in 2009, LEO Pharma has launched numerous innovative products, serving over 10 million Chinese dermatology patients annually. Riding the wave of Chinese pharmaceutical policy reforms, LEO Pharma is fast-tracking the global alignment of its innovations, and even leading innovation globally. 

"China has introduced a series of policies in recent years to accelerate innovation, and the market is evolving rapidly," Morison noted. "For a mid-sized specialty pharmaceutical company like ours, this environment presents more opportunities than challenges. We are more agile, specialized in dermatology, and responsive to change. By constantly accelerating the launch of innovative products, we keep up with China's innovation-driven pace."

Recently, LEO Pharma announced that the European Commission (EC) approved delgocitinib cream (Anzupgo®) for moderate-to-severe chronic hand eczema (CHE) in adults who have not responded well to topical corticosteroids or are not suitable candidates for them. In addition, the FDA has accepted LEO Pharma's new drug application (NDA) for delgocitinib cream in the U.S. 

As a first-in-class topical pan-JAK inhibitor, delgocitinib cream is the first topical treatment specifically targeting moderate-to-severe CHE in adults. In September of last year, LEO Pharma completed the first patient enrollment and administration in China for a Phase III trial of delgocitinib cream for moderate-to-severe adult CHE at Southern Medical University’s Dermatology Hospital. This trial, conducted across 38 research centers in China and involving 362 patients, is expected to yield clinical results as early as 2026. 

While synchronizing China’s innovation with global advancements, LEO Pharma is also exploring the potential for China-led innovation to guide global developments. Bourdon shared that delgocitinib cream, already approved for one indication in the EU, holds the potential for new applications in other dermatological conditions based on discussions with Chinese dermatology experts during this visit. Research on new indications for delgocitinib cream beyond CHE may soon begin in China.

Embracing China's Innovation Ecosystem

Bourdon is steering LEO Pharma towards an innovation-driven growth model, shifting from a past focus on internal research to actively embracing external innovation. 

In the first half of 2023, LEO Pharma restructured its capital to secure over 4 billion Danish Krone for value-added business development, aiming to introduce and acquire innovative products. 

As China’s biopharmaceutical industry has grown in recent years, a dynamic ecosystem for pharmaceutical innovation has emerged, making China a hotbed for cross-border licensing and M&A deals in innovative drugs. 

As of October 27, 2024, the upfront payments for outbound licensing deals in China’s innovative drug sector have reached $2.763 billion, with total deal value amounting to $37.112 billion.

Having entered China over 15 years ago, LEO Pharma began engaging with China's innovation ecosystem early on.

With the shift towards an innovation-driven growth model and updated capital structure, LEO Pharma is embracing China’s innovation ecosystem with a more proactive approach to seeking collaboration opportunities. 

Bourdon shared, "We arranged for LEO Pharma’s global board and management to visit China for a week not only to better understand the needs of Chinese patients and the healthcare environment but also to experience China’s vibrant innovation ecosystem firsthand. We are very interested in innovation opportunities in China.” He added, “If these innovative achievements meet unmet clinical needs in the dermatology field, we would be honored to be a quality international partner for these innovative Chinese companies."

In addition to embracing China's pharmaceutical innovation ecosystem, LEO Pharma recognizes China’s potential as a leader in digital healthcare innovation. 

“LEO Pharma is one of the early multinational pharmaceutical companies to participate in China’s digital health wave. We have partnered with major internet health platforms like Ali Health and JD Health to explore patient-centric business models and leverage digital solutions for comprehensive patient services, such as improving drug accessibility and information availability to maximize patient benefits,” Morison said. 

“China’s leadership in internet-based digitalization is undeniable. China is the most successful market for LEO Pharma’s digitalization efforts, offering valuable insights for our practices in other markets,” she added.

Under the new innovation-driven growth model, Bourdon expressed high expectations for LEO Pharma’s China team: “I hope the LEO China team will become a model for the company’s new global outlook, embracing an agile and proactive approach to change, continuously serving Chinese patients, and leading LEO Pharma’s global innovation transformation.”

Reference: PHARMCUBE