Alcon, Inc. (ACL) continues to work on expanding its product portfolio. The company recently entered into an agreement with Sirion Therapeutics, Inc. for the purchase of rights to two topical eye care products, Durezol and Zirgan. Both products have been approved by the US Food and Drug Administration (FDA). The deal is scheduled to close in the first quarter of 2010.
While Durezol is approved for the treatment of inflammation and pain associated with eye surgery, Zirgan is approved for the treatment of acute herpetic keratitis or corneal ulcers. Alcon also gained global rights, excluding Latin America, to pipeline candidate Zyclorin, which is being developed for the treatment of dry eye and other ocular surface diseases.
This agreement is in-line with the company’s goal to expand its product portfolio and pipeline. Although detailed information regarding the financial terms of the deal was not available, we are pleased to see the company’s commitment towards building its pipeline through in-licensing deals and acquisitions. The agreement with Sirion is the latest in a series of deals executed by Alcon to strengthen its pipeline.
In Dec 2009, Alcon announced its plans to acquire Optonol, Ltd., a privately-held medical device company. In late Oct 2009, Alcon entered into an in-licensing agreement with Potentia Pharmaceuticals for the development of medicines for the treatment of age-related macular degeneration (AMD). In Sep 2009, the company announced the acquisition of Swiss biotech company ESBATech AG.
In July 2009, Alcon entered into a five-year collaborative research agreement with AstraZeneca (AZN) for the exclusive ophthalmic discovery and potential development rights to AstraZeneca’s compound library. Alcon also entered into a research and licensing agreement with PhiloGene Inc. for rights to a vascular endothelial growth factor (VEGF) protein, which will be developed for the treatment of wet AMD and diabetic macular edema. All these transactions should allow Alcon to strengthen its ophthalmic product pipeline.
We currently have a Neutral recommendation on Alcon. The company’s primary competitor in the ophthalmology market is Allergan, Inc. (AGN).
Read the full analyst report on “ACL”
Read the full analyst report on “AZN”
Read the full analyst report on “AGN”
Zacks Investment Research
