NicOx takes option to buy UK ophthalmic company

French biotechnology firm NicOx (Euronext Paris: COX) has entered into an agreement to acquire 11.8% of the shares of Altacor, a privately-held UK ophthalmology company, and entered into an exclusive option accord to acquire the remaining shares of Altacor, marking the first step in its strategic plan to become a late-stage development and commercial ophthalmology company.

Altacor’s primary focus has been to build a specialty pharmaceutical company and has products, pipeline and relationships in place to advance this significantly with NicOx. Altacor markets prescription and over-the-counter (OTC) products for the treatment of dry eye in the UK and Ireland and has a diversified late-stage pipeline including ALT-005, a surgical antiseptic, and SOLO, a device for the insertion of IntraOcular Lenses (IOLs).

Under the terms of the agreement, NicOx is investing £2 million (around $3.2 million) in cash for the initial 11.8% stake in Altacor. In addition, NicOx has been granted an exclusive call option to acquire the remaining shares of Altacor for a further consideration of £9 million to be paid in NicOx shares, cash or a combination of cash and shares at NicOx’ discretion. This option may be exercised by NicOx until May 31, 2012. If agreed milestones are met, the consideration will be increased by up to £8.5 million.