EyeGate Pharmaceuticals announced that it has received its first development milestone from a subsidiary of Valeant under the company's license agreement with Valeant, pursuant to which EyeGate has granted Valeant exclusive, worldwide commercial and manufacturing rights to the company's EyeGate II Delivery System and EGP-437 combination product in postoperative ocular inflammation and pain in ocular surgery patients.
In 2015, EyeGate and Valeant entered into an agreement granting Valeant exclusive, worldwide commercial and manufacturing rights to EGP-437 in the field of uveitis, as well as a right of last negotiation to license the product in other indications. In February 2017, the companies entered into a second agreement for the product in the treatment of postoperative ocular inflammation and pain in ocular surgery patients. Under this agreement, EyeGate is eligible to receive developmental and sales-based milestones totaling up to approximately $99 million, as well as royalties on Valeant's net sales of the product, which will be a part of its Bausch + Lomb Pharmaceuticals business.
"We have made significant progress in the development of EGP-437 for the treatment of postoperative ocular inflammation and pain in ocular surgery patients since initiating our first study in this large indication last year, evidenced by this first milestone payment under the Valeant partnership in ocular surgery," Stephen From, President and Chief Executive Officer of EyeGate Pharmaceuticals, said in a company news release. "Since entering into our initial agreement, in Uveitis, nearly 2 years ago, Valeant has proven to be an optimal partner and we look forward to continued collaboration as we further advance EGP-437 in both of the licensed indications."