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COMBINED COMPANY HAS FOCUS ON R&D

Actavis Set to Buy Allergan

Actavis, a Dublin, Ireland-based pharmaceutical company with North American products focused on women’s health, urology, gastroenterology and dermatology, has entered into a definitive agreement with Allergan to acquire the manufacturer of ophthalmic pharmaceuticals, among other products. The transaction, valued at $66 billion, is anticipated to close in the second quarter of 2015.

Effect on eye care

“It is my hope that in the short term, this acquisition has no effect on the ophthalmologist and optometrist customers Allergan currently has; that they will continue to have the great customer service, that the product offerings will continue to flow, and the product innovations will remain,” says Allergan’s Chairman of the Board and CEO, David E.I. Pyott. “Over the long term as we are a bigger and financially stronger company, we will continue to extend our services in helping our customers with solutions that will hopefully benefit their patients.”

Leadership

The combined company will be led by CEO and President of Actavis Brent Saunders, and Actavis’ Executive Chairman Paul Bisaro will remain executive chairman of the Board. Also, following the transaction, two members of the Allergan Board of Directors will be invited to join Actavis’ Board. Senior management teams of both companies will work on company integration, says a joint press release.

Advantages

Mr. Saunders says the new company, which will be comprised of 15% ophthalmic products, will offer advantages, in terms of the supply chain and order fulfillment.

“We already have probably one of the premier supply chains in the world. We produce internally about 44 billion units. We contract manufacture about another 12 to 15 billion units. Allergan today currently does, let’s say, possibly 2 billion units,” he explains. “We [Actavis] are known in the generic world as having the best, reliable supply chain. We have virtually no backorders in our system. We also own our own distribution business, one of the largest distributors in the United States, called Anda. We have the ability to reach 40,000 pharmacies, and we can ship to physicians’ offices direct, so it’s a really enhanced integration of capabilities.”

Mr. Saunders adds that the new company will commit an annual investment of $1.7 billion to R&D, which includes Allergan’s DARpin, an anti-VEGF therapy, which is in late-stage clinical development to treat wet AMD. He said his view on the therapy is “very bullish.”

“We think that it could change the paradigm for AMD and could reduce the need for painful and uncomfortable injections, so we really consider it to be a game changer …” he explains.

Actavis acquired Allergan for a combination of $129.22 in cash and 0.3683 Actavis shares for each share of Allergan common stock, according to the press release. Based on the closing price of Actavis shares on November 14, the transaction is valued at approximately $219 per Allergan share.

CDC Reports Keratitis Hardship Stats

The CDC has released a report on the overall hardship and epidemiology of keratitis in the United States based on the assessment of the databases of national ambulatory-care and emergency departments, which capture few O.D. visits, the government organization says.

Specifically, the report reveals:

■ An estimated 930,000 doctor’s office and outpatient clinic visits as well as 58,000 emergency room visits occur every year for keratitis or contact lens conditions.

■ A prescription for an antimicrobial drug was the outcome for 76.5% of keratitis visits.

■ Keratitis visits comprise more than 250,000 hours of clinician time every year.

■ Incidences of keratitis and contact lens conditions cost roughly $175 million in direct health expenditures, with $58 million and $12 million attributed to Medicare and Medicaid patients, respectively.

Valeant Acquires Nicox Inc.

Valeant Pharmaceuticals International, Inc., owner of Bausch + Lomb, has purchased Nicox, Inc., which has the U.S. rights to promote Sjö, RetnaGene and the AdenoPlus acute conjunctivitis test. The agreement, effective immediately, is worth up to $20 million.

Nicox recently acquired Aciex, a private, U.S. ophthalmic pharmaceutical development company, which is close to launching AC-170 for the treatment of allergic conjunctivitis. In addition, Nicox’s glaucoma candidate VESNEO, which is in development under license by Bausch + Lomb, is in the pipeline.

Alcon Announces Support of New ISO Standard

Alcon is supporting a new standard that uses “real-world situations” for evaluating contact lens care products, says Eric Bruno, vice president and general manager for U.S. Vision Care at Alcon, in a press conference at the recent American Academy of Optometry (AAO) meeting.

Under the new ISO standard 18259, disinfection efficacy would be evaluated with contact lenses stored in various cases through various periods of time (24 hours, seven days, the manufacturer’s minimum soaking time and the manufacturer’s maximum recommended storage period). The standard also evaluates solutions with the addition of organic soil.

Earlier standards that evaluate the antimicrobial efficacy do not use a contact lens or assess how products perform in a contact lens case.

In other news at the press conference, Mr. Bruno announced Alcon has become a Leadership Partner with “Think About Your Eyes,” the national campaign presented by the Vision Council and the AOA, which educates the public on the benefits of vision health and promotes annual comprehensive eye exams. Other Leadership Partners include Essilor and Luxottica.

Company Provides Eye Exams Via “Eye Truck”

Employees in Boston and the greater Massachusetts area can now get a 15- to 20-minute comprehensive eye exam via Project 2020 (project2020.com), a clinic in a mobile “Eye truck” that drives directly to a company.

Staffing the mobile clinic are two technicians and a licensed optometrist, said Alexa Baggio, Project 2020’s director of operations and business development, in a recent article in The Boston Globe. (Ms. Baggio declined OM’s interview request.)

According to the company website, the clinic includes “high-end equipment used at best-in-class facilities” and an “HD retinal camera.” To book an appointment, a company’s Human Resources representative schedules a date, and Project 2020 sends a link for appointment booking. In terms of insurance, Blue Cross Blue Shield, Davis Vision, Harvard Pilgrim, Spectera and United Healthcare, with patient co-pays provided on the “Eye truck” are accepted.

An online patient brochure explains that the Project 2020 optometrist can “create a new prescription or renew an old one.” Patients can use the prescription to order spectacles that are shipped to the employee’s office. Regarding contact lenses, a “Q&A” explains the company is just renewing or updating current prescriptions. Contact lenses may be offered if the employee is at a site that Project 2020 will visit “for a few days,” as contact lenses require “two appointments.”

The mobile eye exam company received $1.2 million in startup funds, reported a June article in the Boston Business Journal. The company says it plans to expand.

O.D. Notebook