VANCOUVER - Vancouver-based biopharmaceutical firm QLT Inc. (TSX:QLT) announced early Tuesday that it has entered into an agreement to take over California's ForSight Newco II.
The $42-million acquisition includes the rights to ForSight Newco's proprietary technology: a drug-delivery system called "punctal plugs" that can be used to treat a number of eye conditions.
"This acquisition is a clear strategic fit. It complements our expertise in ophthalmology, and it supports our goal to expand our pipeline of ocular products," said Bob Butchofsky, president and CEO of QLT, in a statement.
"We believe that our proprietary system for delivery of medications to the eye using punctal plugs will be an important therapeutic advance in the field of ophthalmology, and could become a key contributor to our future growth."
In addition to the $42 million for outstanding ForSight shares, QLT will also make a series of milestone payments.
The first would be $5 million to mark the third phase of clinical trials for the first product. Another $20 million would be paid for the first two products using the technology and $15 million for the commercialization of each subsequent product.
The deal is expected to close early in the fourth quarter of 2007, after which ForSight will become a wholly-owned subsidiary of QLT.
"We are very excited to work with the experienced drug and device development teams at QLT to advance this technology," said Eugene de Juan, the founder and vice-chairman of ForSight Labs.
"We think this is a very significant technology that could ultimately lead to a sea of change in the way medications are delivered to the eye."
ForSight Newco's punctal plugs could be used to replace eye drops for glaucoma, dry-eye, allergies and post-operative care. The non-invasive drug delivery system can deliver drugs to the eye over time through controlled release. Such technology represents a $6-billion market, the company said.
