Bausch & Lomb options license to DES compound

US eye health giant Bausch & Lomb (NYSE: BOL) says it has acquired an option to license an investigational compound currently in Phase II development for the treatment of dry eye syndrome (DES) from privately-held Canadian firm Mimetogen Pharmaceuticals. The compound, called MIM-D3 and developed by Mimetogen, has the potential to be the first in a new class of agents called TrkA agonists.

Under the terms of the deal, Bausch & Lomb - currently the subject of a $8.7 billion takeover bid from Canada’s Valeant Pharmaceuticals (TSX: VRX: The Pharma Letter May 28) - will pay Mimetogen an undisclosed upfront amount as an option fee to secure the right to acquire an exclusive global license on set terms triggered by the availability of top line results from a Phase III study. Should Bausch & Lomb choose to pursue development based on the Phase III results, it will assume all development responsibilities and costs, and also will pay development milestones, sales milestones and royalty fees to Mimetogen.

If approved, MIM-D3 would compete in $2.5 billion global market sector