Irish company Allergan has signed an agreement to acquire US-based development-stage medical device firm Oculeve, for around $125m.
Based in South San Francisco of California, Oculeve is involved in developing new technologies for dry eye disease.
Under the deal, Allergan will $125m pay upfront payment and commercialisation milestone payments related to Oculeve’s lead development program OD-01.
The OD-01 is a non-invasive nasal neurostimulation device that is being developed to increase tear production in patients with dry eye disease.
Allergan global brands research and development executive vice-president David Nicholson said: "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."
The deal will also allow Allergan to acquire Oculeve’s additional earlier-stage dry eye device development program.
Oculeve has already completed four clinical studies of OD-01 in around 200 patients, which demonstrated positive safety and efficacy of the device.
Allergan intends to carry out two additional pivotal trials prior to FDA submission that is expected in 2016, with potential commercial launch in 2017.
Oculeve president and CEO Michael Ackermann said: "Allergan’s position and expertise in eye care will maximize the development and potential commercialization of the OD-01 technology."
Subject to pending approvals, the deal is expected to complete in the third quarter of this year.
Image: Allergan to acquire development-stage medical device firm Oculeve. Photo: courtesy of adamr/FreeDigitalPhotos.net.