Alcon, Inc. (ACL) recently entered into an in-licensing agreement with Potentia Pharmaceuticals, a privately-held biotechnology company that focuses on the development of medicines for the treatment of age-related macular degeneration (AMD). Alcon gained the right to develop Potentia’s leading drug candidate, POT-4, for the treatment of AMD. Alcon also gained the right to acquire Potentia’s shares on the achievement of certain development milestones and if Alcon opts to continue with the development of POT-4.

Alcon will make upfront payments to Potentia for the initial license and option rights. Potentia is also entitled to receive future payments based on the achievement of several clinical and global regulatory approval milestones for different therapeutic indications and on Alcon’s decision to proceed with development. Potentia will also receive royalties based on sales of any products that are approved and commercialized under this agreement.

POT-4 is a complement inhibitor, which is being developed for both dry and wet AMD. The candidate has completed a phase I study in wet AMD patients. With AMD being the leading cause of blindness in the elderly in the western world and estimated to affect more than 10 million patients in the United States alone, we believe the commercial opportunity for AMD is significant. While 10% of AMD patients are afflicted by the wet form of the disease, the dry form of the disease is more prevalent with 90% of AMD patients suffering from it.

Although detailed information regarding the financial terms of the deal was not available, we are pleased to see Alcon’s commitment towards building its pipeline through in-licensing deals and acquisitions. The in-licensing deal with Potentia is the latest in a series of deals executed by Alcon to strengthen its pipeline.

In September 2009, Alcon announced the acquisition of Swiss biotech company, ESBATech AG. In July 2009, Alcon entered into a five-year collaborative research agreement with AstraZeneca (AZN) for the exclusive ophthalmic discovery and potential development rights to AstraZeneca’s compound library. Alcon also entered into a research and licensing agreement with PhiloGene Inc. for rights to a vascular endothelial growth factor (VEGF) protein, which will be developed for the treatment of wet AMD and diabetic macular edema. All these transactions should allow Alcon to strengthen its ophthalmic product pipeline.

We maintain our Neutral recommendation on Alcon. The company’s primary competitor in the ophthalmology market is Allergan, Inc. (AGN).

Zacks Investment Research
View original at: Zacks.com News Feed

1. (BVF) Biovail Corporation Continues with PimavanserinBiovail Corporation (BVF) recently provided an update on its development plans for pimavanserin for Parkinson’s...
2. (SNY) Sanofi-Aventis Boosts PipelineFrench pharmaceutical giant Sanofi-Aventis (SNY) continues to boost its pipeline through in-licensing deals and acquisitions....
3. (AMGN) Good News for Amgen’s PipelineAmgen (AMGN) maintained a strong presence at the 2009 ECCO 15 – ESMO 34 European...
4. (ACL) Alcon Aquires Swiss Company and Expands PipelineEarlier this week, Alcon Inc. (ACL) signed a definitive agreement for the acquisition of Swiss...
5. (EPB) El Paso Pipeline Partners L.P – distribution increase continues our history of raising full quarter distributionsEl Paso Pipeline Partners L.P. (EPB), which operates natural gas pipelines Incorporatedreased its cash distribution...
6. (VPHM) ViroPharma Inc – Sales are expected to grow 159.26%ViroPharma Inc. (VPHM) is seeing record sales of its big drug Vancocin which is adding...

Search Posts by Tag: ACL | Advanced Micro Devices Inc. | AGN | Alcon Inc | Allergan Inc. | AMD | AstraZeneca plc | AZN | Healthcare

RSS Feeds by Tag: ACL | Advanced Micro Devices Inc. | AGN | Alcon Inc | Allergan Inc. | AMD | AstraZeneca plc | AZN | Healthcare |

Other Posts by: vitalstocks | RSS Feed for this author