Alimera Sciences and pSivida Ltd have amended their license and collaboration agreement relating to Medidur FA, the companies' phase III investigative treatment for diabetic macular edema (DME), and other Medidur products. Alimera is increasing its equity in the future profits of Medidur FA from 50 to 80 per cent in exchange for consideration of up to approximately $78m to pSivida.
"We are very pleased with this agreement as it provides us with the opportunity to increase our stake and consolidate the development and commercialization of our late stage DME product Medidur FA," said Dan Myers, president and CEO, Alimera Sciences. "In addition, we will further advance the delivery system's application in other serious ophthalmic conditions like dry age-related macular degeneration (AMD), using exploratory treatments such as the groundbreaking work we are doing around NADPH oxidase inhibitors."
Consideration to pSivida includes an up-front payment of $12m, a $25m milestone payment upon FDA approval of Medidur FA, other payments of up to approximately $21m by September 30, 2012, and assumption of pSivida's research and development funding obligations estimated at approximately $20m.
"We believe this is a great deal for pSivida and its shareholders as it gives the company a significant financial interest in very exciting products and economics that eliminate our need for equity financing for the foreseeable future under our current plans," said, Dr. Paul Ashton, managing director, pSivida. "This new agreement with Alimera Sciences is expected to significantly reduce our burn rate going forward as the company's two lead ophthalmology programs in development are now funded by our partners."