According to the deal, a joint development committee with representatives from both the companies will look after AzaSite Xtra development and regulatory submission activities in the US and Canada.
Merck has an option to purchase AzaSite Xtra for a one-time payment and sales-based royalties.
InSite Vision chief executive officer Timothy Ruane said, "We believe InSite’s capabilities as a nimble, efficient drug developer will allow us to speed the development of AzaSite Xtra."
Indicated for the topical treatment of ocular infections such as bacterial conjunctivitis in patients one year and older, AzaSite Xtra leverages InSite’s DuraSite topical drug delivery system.