Allergan to buy Oculex for $230 million

IRVINE, Calif. — Allergan has signed a definitive agreement to purchase Oculex Pharmaceuticals for $230 million in an all-cash transaction, the company announced in a press release yesterday.

Oculex is already involved with Allergan; the two companies have been in a license and research collaboration since 2001 to commercially develop biodegradable drug delivery technology.

Oculex’s lead product, Posurdex, is a sustained release implant that delivers dexamethasone to a targeted disease site in the back of the eye. Phase 2 clinical trials of the implant showed “promising results,” according to the release. Allergan plans to initiate phase 3 clinical trials of the implant in the early part of next year. Specifically, Allergan plans on testing Posurdex for the treatment of macular edema associated with diabetes and other conditions, according to the press release. Allergan presumes a U.S. regulatory approval by 2006 or 2007.

“This transaction provides us with access to a late stage retinal disease development program with strong phase 2 data,” said Lester J. Kaplan, MD, Allergan’s corporate vice president and president, research and development and global Botox, in the release. “Additionally, Oculex’s biodegradable drug delivery technology will provide Allergan with a versatile platform for sustained local delivery of compounds to the eye, whether on our own or in collaboration with others.”

“It’s quite clear there’s a lot of interest in the posterior segment of the market,” said David Pyott, chairman of the board, president and chief executive officer, during a Web cast. “We’ve become more and more excited about the depth of our technology. Our real problem is sorting through all these different opportunities and determining which ones we can fund.”

According to Allergan, the acquisition will not have an impact on previously stated 2003 adjusted earnings per share, but the company will incur additional research and development costs during fiscal 2004.