Timber Pharmaceuticals filed for Chapter 11 bankruptcy Nov. 17.
The company was researching rare dermatological diseases with no approved treatments, according to its website.
Timber and its subsidiary BioPharmX, a specialty dermatology pharmaceutical company, are now in a "stalking horse" agreement with LEO Pharma, which signed a deal in August to acquire Timber for about $14 million. The stalking horse asset purchase agreement allows LEO Pharma to sell Timber for the acquisition price.