Ocular Therapeutix, a Bedford, Massachusetts-based biopharmaceutical company developing therapies for diseases and conditions of the eye, has formed a strategic collaboration, worth up to $315 million, including an option and license agreement, with Regeneron Pharmaceuticals, a Tarrytown, New York-based pharmaceutical company, to develop a sustained-release formulation for aflibercept, a vascular endothelial growth factor (VEGF) trap for treating wet age-related macular degeneration (wet AMD) and other serious retinal diseases. This formulation is currently in preclinical development.

Regeneron’s aflibercept, marketed under the brand name Eylea, is currently approved by the US Food and Drug Administration for the following indications: neovascular wet AMD; macular edema following retinal vein occlusion; and diabetic macular edema.

Under the agreement, Regeneron has the option to obtain an exclusive license to use Ocular Therapeutix’s hydrogel-based technology for the development and commercialization of a sustained-release formulation of aflibercept and other biologics targeting VEGF for ophthalmic indications. Ocular Therapeutix will retain all rights to develop its sustained-release hydrogel-based drug delivery platform with all other non-VEGF targeting compounds as well as with small molecule pharmaceuticals, including tyrosine kinase inhibitors, for other retinal diseases.

Upon exercising the option, Ocular Therapeutix would receive a payment of $10 million from Regeneron and would be responsible for funding development through Phase I. Regeneron would be responsible for any subsequent development and commercialization costs. Ocular Therapeutix would be eligible to receive up to $305 million in milestone payments from Regeneron for a sustained-release version of aflibercept containing Ocular Therapeutix’s sustained release hydrogel depot, comprised of up to $155 million in development and regulatory milestone payments, $100 million for the first commercial sale, and up to $50 million in commercial milestone payments.

In addition, Ocular Therapeutix is eligible to receive tiered high single-digit to low-to-mid teen-digit royalties on potential future net sales.

Source: Ocular Therapeutix