This article is more than 5 years old. Information may no longer be current.
Santen Pharmaceuticals closes phaco device subsidiary
Phacor’s closing stems from delayed commercialization of a new phacoemulsification system.
Click Here to Manage Email Alerts
After almost 6 years of operation, Santen Pharmaceuticals Co. Ltd. has closed Phacor Inc., its California, U.S.-based wholly owned subsidiary that focused on development of phacoemulsification systems.
According to Junko Yoshimoto, a member of corporate communications for Osaka, Japan-based Santen Pharmaceuticals, the decision to close Phacor was made in September 2003. The company was officially closed on March 31, 2004, at the close of Santen Pharmaceuticals’ fiscal year.
Phacor was incorporated in June 1998 with the aim of developing next-generation, high-quality phacoemulsification machines over a short period of time. Ms. Yoshimoto said Santen decided to close the company because development of its lead product, the Dignity phacoemulsification system, took longer than the company had planned.
According to the company, changes in specifications and a lack of software professionals contributed to a delay in commercialization. Also, Phacor realized that some of the competitive features of the Dignity were already present in products being marketed by other companies, thus making it difficult for the Dignity to compete in the current market, Ms. Yoshimoto said.
“Santen, after conducting a thorough evaluation of its business potential and profitability, therefore decided to stop further investment in Phacor,” she said.
Due to the closing, it is expected that Santen will record a one-time loss of 600 million yen, or about $5.7 million, for the year ended March 31, 2004. However, the company does not expect to sustain any further losses related to Phacor.
The closing of Phacor will not affect any of Santen Pharmaceuticals’ other subsidiaries, such as U.S.-based Santen Inc. and Advanced Vision Science Inc.
Dignity phaco system
At the time of its closing, Phacor had almost completed development of its Dignity phaco system. Richard Thorlakson, MD, one of the designers of the system, told Ocular Surgery News that if production had not been stopped, the system would likely have been ready for clinical testing within 3 months; it could have been ready for marketing within another 4 to 6 months, he said.
“We had the 510(k) [clearance from the United States Food and Drug Administration], but we had to finish our verification and validation testing,” he said.
“At this point, it really is pretty much in limbo,” Dr. Thorlakson said. “It’s kind of an odd situation that I really do not understand.”
Ms. Yoshimoto said that Santen does not plan to market the Dignity.
Phacor had not finalized its plan for disposition of its other remaining assets, although some, such as the machine shop, were donated to California Polytechnic State University, San Luis Obispo, for use in teaching and research activities, she said.
Ms. Yoshimoto noted that the Santen Group continues its research and development of IOLs through Advanced Vision Sciences. However, the group does not currently have any plans to develop any other ophthalmic devices.
For Your Information:
- Junko Yoshimoto, director of corporate communications for Santen Pharmaceutical Co. Ltd., can be reached at 9-19 Shimoshinjo 3-chome, Higashiyodogawa-ku, Osaka 533-8651, Japan; 81-6-6321-7007; fax: 81-6-6321-8400.
- Richard Thorlakson, MD, can be reached at P.O. Box 12928, San Luis Obispo, CA 93406; 206-369-5968. Dr. Thorlakson has no direct financial interest in the products mentioned in this article, nor is he a paid consultant for any companies mentioned.
- Santen Pharmaceutical Co. Ltd. can be reached at 9-19 Shimoshinjo 3-chome, Higashiyodogawa-ku, Osaka 533-8651, Japan; 81-6-6321-7000; fax:81-6-6321-8400; Web site: www.santen.co.jp.