Dive Brief:
- Valeant Pharmaceuticals announced on Feb. 21 it struck a deal with EyeGate Pharmaceuticals to license rights to Eyegate's drug delivery system and a combo product candidate for post-operative eye pain, bolstering its eyecare unit even as it sells off other assets to pay down debt.
- In exchange for an undisclosed upfront payment, EyeGate will give Valeant rights to its Eyegate II Delivery System and EGP-437, jointly designed for post-operative use in ocular surgery patients.
- Valeant CEO Joseph Papa sees the two as fit for the Canadian drugmaker's Bausch & Lomb business, which is a key part of the company's plans to return to growth after a disastrous 2016.
Dive Insight:
Valeant kicked off 2017 with two major divestitures, selling off Dendreon and three skincare brands for a combined sum of $2.1 billion. The embattled drugmaker had over $30 billion in long-term debt on its balance sheet as of Sept. 30, and paying that down has been at the top of Papa's to-do list since he joined Valeant last spring.
Rumors have indicated other parts of the company, such as the Salix unit, might also be up for sale. But Bauch & Lomb has — so far — been considered a core asset that Valeant wants to keep on board.
Many of the key catalysts Valeant has set out for itself this year are in eyecare, including a planned launch in the second half of 2017 of latanoprostene bunod, a treatment aimed at reducing intraocular pressure in ocular hypertension or glaucoma.
Back in 2014, Valeant had predicted peak global revenues for the drug at over $1 billion but a complete response letter over manufacturing concerns has delayed an approval in the U.S.
Valeant also expects to launch Bausch & Lomb ULTRA and Biotrue ONEday toric lenses this year for people with astigmatism, rounding out the company's contact lenses portfolio.
EyeGate and Valeant have worked with each other before, striking a 2015 licensing deal for the same combo product but in uveitis. Since that deal, Valeant has kept a right of last negotiation to license the product in other indications, which it has now done for post-operative pain and inflammation.