Allergan Strikes Another Deal, Acquires SoCal's AqueSys for $300+ Million

September 4, 2015
By Alex Keown, BioSpace.com Breaking News Staff

DUBLIN -- Allergan plc is beefing up its eye-care pipeline with the $300+ million acquisition of glaucoma-treatment maker AqueSys, a private clinical stage medical device company, the company announced this morning.

AqueSys is focused on developing ocular implants that reduce intraocular pressure (IOP) associated with glaucoma. Its XEN45 program allows for the implanting of a soft shunt 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 (IOP) while protecting against the potential for hypotony (IOP that is too low) that is associated with current subconjunctival procedures.

“Our eye care team has a strong track record of introducing novel treatments for patients with glaucoma. The acquisition of the XEN45 device demonstrates our commitment to alternative next-generation glaucoma treatments which are appealing to both patients and physicians and extend beyond conventional medication eyedrops,” Brent Saunders, Allergan’s chief executive officer, said in a statement.

Ron Bache, AqueSys’ chief executive, said Allergan was a natural fit for his company, given Allergan’s “pedigree in the eye-care space.”

The XEN45 program is in late-stage clinical development in the United States, but has already received marketing approval 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 approval allows treatment in conjunction with a cataract procedure or as a standalone procedure. XEN45 is also approved for use in Turkey, Canada and Switzerland. Final approval by the U.S. Food and Drug Administration (FDA) is expected by late 2016 or early 2017, the company said.

In 2010, 60.5 million people globally were living with glaucoma. Allergan said the number could increase to approximately 80 million people by 2020, given the aging populations of the world. Glaucoma is a group of diseases that damage the eye's optic nerve and can result in vision loss and blindness. Several large studies have shown that eye pressure is a major risk factor for optic nerve damage.

Allergan said the deal, which could include additional milestone payments, could be completed by the end of 2015, barring any unforeseen regulatory problems.

Allergan’s Saunders has been a catalyst in the pharmaceutical M&A activity over the past few years. Following Allergan’s sale of its generics business to Israel-based Teva Pharmaceutical Industries Ltd. for $40.5 billion, Saunders said the company is “reloaded and ready to move” on a new acquisition, despite just completing a merger with Actavis plc earlier this year.

Allergan has been at the heart of M&A activity over the past year. Some of the most recent deals include:

• The sale of its generics brand to Teva for $40.5 billion.
• The acquisition of depression drugmaker Naurex Inc. for $560 million.
• The purchase of Merck & Co. ’s small molecule oral calcitonin gene-related peptide (CGRP) receptor antagonists to treat migraine for more than $250 million.
• The acquisition of Bay Area’s Oculeve, a maker of eye care therapies, for $125 million+.
• The acquisition of Kythera Biopharmaceuticals, Inc. , which is focused on the treatment of double chins, for approximately $2.1 billion.
• The completion of its merger with Actavis Plc and the official name change to Allergan Plc.