Allergan (NYSE:AGN) said today that it agreed to pay $125 million up front to acquire Oculeve and its dry eye disease device program, plus unspecified commercialization milestones.
South San Francisco-based Oculeve is developing a product called OD-01, a non-invasive nasal neurostimulation device designed to increase tear production in patients with dry eye disease, Allergan said. A pair of pivotal trials are planned ahead of submission for FDA approval, expected next year, with commercialization potentially following in 2017, according to Dublin-based Allergan.
“Allergan is committed to developing a broad range of innovations that help patients address dry eye,” executive vice president David Nicholson said in prepared remarks. “The OD-01 program has been shown to provide a strong safety and efficacy profile, and if approved, would provide an exciting new treatment option for patients that is complementary to our existing product offerings in this important treatment area.”
“Allergan’s position and expertise in eye care will maximize the development and potential commercialization of the OD-01 technology,” added Oculeve president & CEO Michael Ackermann. “I am extraordinarily appreciative and proud of the Oculeve team that has worked so hard to develop our exciting technology, and I am thrilled for us to partner with the Allergan team on the continued development, potential approval and availability of OD-01 to patients worldwide.”
Allergan said its prior 2015 earnings-per-share guidance for $17 to $18 is unchanged as a result of the acquisition, which is expected to close during the 3rd quarter.