Allergan To Buy Glaucoma Treatment Company For $300, Plus Milestones

(RTTNews) - Allergan plc (AGN) on Thursday agreed to buy AqueSys Inc, a private clinical-stage glaucoma treatment company, for $300 million upfront cash payment, with possible milestone payments.

AqueSys focuses on developing ocular implants that reduce intraocular pressure (IOP) associated with glaucoma.

Allergan said the deal includes regulatory approval and commercialization milestone payments related to AqueSys' lead development programs, including XEN45.

The deal is expected to close in the fourth quarter of 2015.

"The acquisition of AqueSys and its XEN45 program builds on Allergan's deep and long-standing commitment to innovation in eye care," said Brent Saunders, CEO and President of Allergan.

The acquisition of AqueSys adds XEN45, a soft shunt that is implanted in the subconjunctival space in the eye through a minimally invasive procedure with a single use, pre-loaded proprietary injector. The proprietary XEN45 technology facilitates aqueous fluid flow to lower Intra-Ocular Pressure while protecting against the potential for hypotony that is associated with current subconjunctival procedures.

XEN45 has received a CE mark in the European Union where it is indicated for the reduction of intraocular pressure in patients with primary open angle glaucoma where previous medical treatments have failed. The CE mark allows treatment in conjunction with a cataract procedure or as a standalone procedure.

XEN45 is also approved for use in Turkey, Canada and Switzerland. AqueSys is pursuing reimbursement in these countries.

In the United States, XEN45 is in late-stage development, with the final US Investigational Device Exemption clinical trial fully enrolled in the second quarter of 2015. Final approval by the U.S. Food and Drug Administration is expected by late 2016 or early 2017.