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Allergan and Oculex to jointly develop ophthalmic drugs
IRVINE, Calif. — Allergan (NYSE: AGN) and Oculex Pharmaceuticals Inc. announced that they will jointly discover, develop and commercialize compounds for ophthalmic use based on Oculex's proprietary biodegradable and reservoir drug delivery technologies.
Under the terms of the agreement, Allergan, based here, and Oculex, of Sunnyvale, Calif., will work together to develop products for the treatment of serious conditions affecting the retina and posterior segment. Any jointly developed products will be based on novel Allergan compounds and compounds obtained from third parties using Oculex's proprietary site specific, controlled release drug delivery technologies. As part of the collaboration, Oculex will provide its expertise in polymeric formulation and micro-size manufacturing to support the development of these posterior segment pharmaceutical products. Allergan has the right to nominate an unlimited number of internal and third-party compounds during the term of the collaboration.
In exchange, Oculex may receive up to $30 million in the form of initial cash payments, equity investments and development milestones for the lead product based on a novel Allergan compound. Oculex will also receive development funding and royalties on worldwide sales of all future products resulting from the collaboration.
"Oculex's drug delivery technology will provide Allergan with a platform of biodegradable and reservoir delivery technology to provide sustained local delivery of compounds to the eye," said David E.I. Pyott, Allergan's chairman, chief executive officer and president. "This novel Oculex technology may provide for an important new breakthrough in ophthalmic therapy for new and well-established drugs by local delivery to the back of the eye."