Allergan Inc and Senju Pharmaceutical announced that they have entered into an exclusive licensing agreement in Japan to market and develop Lumigan (Bimatoprost Ophthalmic solution - 0.03 per cent) within the ophthalmic specialty area. Lumigan, a clinically proven, effective eye drop medication for lowering intraocular pressure (IOP), was first launched in the United States in 2001 and is currently marketed in more than 40 countries around the world. In 2003, global sales of Lumigan were $181 million and are currently projected to be between $210 and $235 million in 2004.

Under the terms of the licensing agreement, Senju, a leader within the Japanese ophthalmic pharmaceutical market, will be responsible for the development and commercialization of Lumigan in Japan and will incur associated costs. Specifically, Senju will provide Allergan with an up-front payment, as well as development and commercialization milestone payments. In addition, Senju will pay Allergan a royalty based on Lumigan sales in Japan upon product commercialization. Allergan and Senju will work collaboratively on overall product strategy and management.

Lumigan belongs to a new generation of IOP-lowering agents called lipids that now account for approximately 43 percent of the worldwide glaucoma market and currently represent the fastest growing category in the glaucoma market segment. Lumigan represents Allergan's premier glaucoma product and has been shown, in multiple clinical trials, to lower IOP more than other products. Lumigan is currently in Phase 3 clinical development within Japan and market approval is expected in 2007.

"The glaucoma market in Japan is poised for strong growth over the next several years, and we feel confident that this licensing agreement with Senju will enable both companies to maximize the potential market opportunity upon the approval of Lumigan in Japan," said David Pyott, Allergan's chairman of the board, president and chief executive officer. "We are thrilled with the outcome of this transaction as we believe that Senju is well positioned in the Japanese market to aggressively pursue a leadership position with the Lumigan technology."

"We are excited about our partnership with Allergan as it reflects a mutual recognition of Lumigan's potential in the Japanese market," said Shoji Yoshida, President of Senju Pharmaceutical. "The demonstrated benefits of Lumigan, combined with our optimal manufacturing resources and marketing experience, will make for a successful collaboration."

The glaucoma market in Japan is currently estimated to be over $500 million. The Japanese glaucoma market has experienced strong growth over the last few years and, given Japan's population demographics, it is expected that the total number of patients will continue to increase.