Eye implant maker pSivida Corp. (NSDQ:PSDV) modified its research and development contract with Pfizer Inc. (NYSE:PFE), its largest shareholder, to focus solely on an implant for treating glaucoma and ocular hypertension.
The device, a bioerodible version of pSivida’s proprietary Durasert technology, provides long-term sustained release of latanoprost, a topical eye medication used to reduce pressure inside the eye.
Under the new agreement, Pfizer pays $2.3 million up front and up to $166 million in performance milestones plus royalties.
The revised contract grants pSivida the right to develop the product through Phase II clinical trials, which company officials announced the start of today.
After the trials, Pfizer can exercise its option for an exclusive worldwide license to develop and commercialize the device for $20 million in payment and double-digit royalties to pSivida on any sales, as well as up to $146.5 million in development, regulatory, and sales performance milestones, according to the release.
If Pfizer opts out, pSivida can continue development and commercialization of the ocular device on its own or with a new partner.
