Yahoo Finance Allergan to Buy ForSight VISION5, Boost Glaucoma Pipeline
Late last week, Allergan plc AGN announced that it will be acquiring a privately held, clinical-stage biotechnology company focused on eye care. ForSight VISION5 will be acquired by Allergan for an upfront payment of $95 million as well as a launch milestone payment related to ForSight's lead development program.
Acquisition to Boost Allergan’s Glaucoma Segment
With this acquisition, slated to close in 60 days, Allergan will add ForSight's lead development program, a peri-ocular ring designed for extended drug delivery and reducing elevated intraocular pressure (IOP) in glaucoma patients, to its pipeline.
Data from a randomized, controlled phase II study comparing the ring to twice-daily timolol eye drops showed that a single administration of the ring provided sustained reduction in IOP for six months (with a reduction of 4-6 mmHg at the study's primary endpoint of 12 weeks). About 90% of subjects retained inserts in both eyes for 6 months without clinician assistance.
With glaucoma expected to be a leading cause of vision loss across the world, there is significant need for new treatment options. Information provided by the Bright Focus Foundation indicates that glaucoma may impact more than 80 million people across the world by 2020.
According to information provided by Allergan in its press release, while eye drops are currently used to lower elevated IOP, almost 50% of glaucoma patients may stop refilling their prescriptions after six months, usually because of difficulty in using drops.
The ring, if developed successfully, will provide an alternate treatment option to patients. It rests on the surface of the eye and is inserted by an ophthalmologist or optometrist, and releases medication (bimatoprost) over several months to lower elevated IOP in glaucoma and ocular hypertensive patients.
Our Take
The deal is in line with Allergan’s efforts to strengthen its branded product portfolio. Allergan, which previously had a strong presence in the generics market, divested its Actavis Generics segment to Teva Pharmaceutical Industries Limited TEVA earlier this month and also agreed to sell its Anda, Inc. distribution business to Teva.
Allergan has a pretty strong presence in the eye care market with products like Restasis, Lumigan, Combigan, and Ozurdex in its portfolio. Within the glaucoma segment, the company recently launched XEN Gel Stent, a minimally invasive procedure to lower IOP, in 10 international markets and is looking to gain FDA approval next year. Other players in the eye care segment include Novartis AG NVS.
Meanwhile, Allergan was recently in the news as being interested in acquiring biotech major Biogen, Inc. BIIB. However, on the second quarter call, the company said that it is not looking at and is not focused on any large transformational M&A.
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