Allergan recently announced that it has agreed to buy Oculeve in an all-cash transaction. The deal is expected to close in the third quarter of 2015. Press releases state that Allergan will pay Oculeve $125 million upfront, and that Allergan will also pay Oculeve additional commercial milestone payments that are related to Oculeve’s lead development project.
According to press releases, Oculeve is a development-stage medical device company focused on developing novel treatments for dry eye disease. The press releases note that Oculeve was founded out of a collaboration with the Stanford Biodesign Center and Department of Ophthalmology at Stanford University. The press releases further state that Oculeve’s lead development project, OD-01, is a non-invasive nasal neurostimulation device that increases tear production in patients with chronic dry eye; Oculeve has already completed four clinical studies showing positive safety and efficacy of the product; Allergan plans to complete an additional two studies before submitting the product to the FDA; and that Allergan and Oculeve hope to commercially launch OD-01 in 2017.
According to its website, Allergan is a leading global pharmaceutical company with commercial operations in approximately 100 countries. According to Allergan, the company is focused on developing branded pharmaceuticals, high-quality generic and over-the-counter medicines and biologic products for patients around the world.