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news.Vancouver-based biotech QLT has entered into an agreement to acquire the ForSight Newco II, a company which is developing proprietary products including an ocular drug-delivery system targeting glaucoma.
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Under the terms of the agreement, QLT will acquire all of the outstanding shares of ForSight Newco II for $42 million on closing along with future milestone payments and royalties on net sales of products. The milestone payments consist of a one-time $5 million payment upon the initiation of a Phase III clinical trial for the first product, $20 million on first commercialization of each of the first two products using ForSight Newco II’s proprietary technology and $15 million on first commercialization of each subsequent product.
The acquisition is expected to close early in the fourth quarter of 2007 and is subject to customary closing conditions. On completion of the acquisition, ForSight Newco II will become a wholly-owned subsidiary of QLT.
Bob Butchofsky, president and CEO of QLT, said: “This acquisition is a clear strategic fit. It complements our expertise in ophthalmology, and it supports our goal to expand our pipeline of ocular products. We believe that our proprietary system for delivery of medications to the eye using punctal plugs will be an important therapeutic advance in the field of ophthalmology, and could become a key contributor to our future growth.”