Allergan Snaps Up Early-Stage Device Developer Oculeve
By Jof Enriquez,
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The pharmaceutical firm Allergan PLC has acquired San Francisco, CA-based startup Oculeve, a developer of a nasally-implanted neurostimulation device that can increase tear production in those with dry eye disease. The transaction is expected to close in the third quarter of 2015.
According to a statement, Allergan will pay $125 million in cash up front, plus milestone payments for Oculeve and its OD-01 device technology. Four clinical trials involving 200 patients have demonstrated the safety and efficacy of the device. Allergan says it is planning to conduct an additional pair of studies prior to seeking FDA clearance in 2016 and commercial launch in 2017.
"Allergan is committed to developing a broad range of innovations that help patients address dry eye," said David Nicholson, executive VP, Global Brands Research and Development at Allergan. "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."
According to an Orange County Business Journal article, Parsippany, N.J.-based, Ireland-domiciled Allergan is a major player in dry eye treatments, marketing the Restasis prescription eye drops. The drug company says in its statement that Oculeve — and its developmental device solutions — is a solid addition to Allergan's pipeline of treatments addressing one of the most unmet clinical needs in ophthalmology.
"Allergan's position and expertise in eye care will maximize the development and potential commercialization of the OD-01 technology," said Michael Ackermann, president and CEO of Oculeve, in the statement. "I am extraordinarily appreciative and proud of the Oculeve team that has worked so hard to develop our exciting technology, and I am thrilled for us to partner with the Allergan team on the continued development, potential approval and availability of OD-01 to patients worldwide."
Chronic dry eye disease affects some 25 million patients in the United States. Current treatments include prescription medicated drops, such as cyclosporine, or lacrimal plugs that prevent tears from draining away from the eye. However, because cyclosporine takes up to six months to take effect, many patients stop administering drops earlier than necessary. Dry eye disease has remained a relatively common condition with no treatment breakthrough in years.
Michael Ackermann, CEO and founder of Oculeve, first developed the idea of a neurostimulator that triggers tear production as a fellow in Stanford Biodesign, a biomedical engineering program of the university.
"The device consists of two parts, one of which is implanted in the mucous membrane of the nasal cavity, and another that is inserted under the skin directly below the eyebrow. Together, the implants deliver micro-electric pulses to the lacrimal gland and stimulate natural tear production, which can be adjusted wirelessly," reads a description by the Stanford Medical News Center.
After completing his Stanford Biodesign fellowship, Ackermann founded Oculeve in May 2014. The device firm received seed funding from Kleiner Perkins Caufield and Byers, with additional financial backing from New Enterprise Associates and Versant Ventures.