Allergan Set to Acquire Oculeve

Allergan announced Monday that it has signed an agreement to acquire South San Francisco, Calif.-based Oculeve for $125 million.

The deal will give Allergan the rights to Oculeve’s lead development program OD-01, a nasal neurostimulation device that boosts tear production in patients with dry eye disease.

Allergan says Oculeve has already completed four OD-01 clinical studies in over 200 patients, with the device demonstrating safety and efficacy. To support FDA submission in 2016, the Irish firm will conduct two additional trials, and projects a commercial launch for 2017.

The transaction is subject to regulatory approval. Allergan anticipates the deal will close the third quarter of this year. — Jason Scott