Ohr Pharmaceutical has entered into a definitive agreement with SKS Ocular and its affiliate SKS Ocular 1 (SKS Ocular) to acquire SKS Ocular's ophthalmology assets.
New York-Ohr Pharmaceutical has entered into a definitive agreement with SKS Ocular and its affiliate SKS Ocular 1 (SKS Ocular) to acquire SKS Ocular's ophthalmology assets.
The transaction will provide Ohr with a proprietary, patent-protected, sustained release technology platform under development, as well as numerous pre-clinical sustained-release drug product candidates related to the treatment of glaucoma, retinal diseases, and other ophthalmic indications.
As part of the agreement, Ohr will also gain a research and development team, as well as a research laboratory in San Diego, CA. The transaction is expected to close by the end of this month.
Under the terms of the agreement-in exchange for substantially all the assets of SKS Ocular-Ohr will make an upfront payment of $3.5 million in cash and 1,194,862 shares of Ohr common stock. In addition, SKS Ocular will be eligible to receive up to 1,493,578 additional shares of Ohr common stock in contingent milestone payments.
These payments will be made if the acquired platform and pre-clinical drug candidates are successful in meeting certain specified development and regulatory goals within a specified time frame. SKS Ocular will also be entitled to receive a portion of any cash payments to Ohr from further collaboration with the large global pharmaceutical company on the lead development program, up to a maximum of $5 million.
"We are very excited to be acquiring SKS Ocular's technology, which we see as complementary to our efforts to develop and commercialize squalamine eye drops for retinal disease," said Irach Taraporewala, PhD, chief executive officer of Ohr Pharmaceutical. "This acquisition is a continuation of our strategy to build out a robust pipeline with novel, innovative delivery technologies. Our expanded pipeline now includes both early- and late-stage clinical assets that address multi-billion dollar market opportunities for retinal disease, glaucoma, and other ocular indications."
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