Acucela and Otsuka to co-develop rebamipide

US firm Acucela and Japan's Otsuka Pharmaceutical have entered into a definitive agreement to co-develop rebamipide ophthalmic suspension, the latter's proprietary compound for the treatment of dry eye which is currently in Phase III clinical development in the USA.

Under the accord, the parties will collaborate in the clinical development efforts for rebamipide in the USA, with Acucela spearheading the regulatory strategy to gain approval for the product in America. On the grant of this, the parties may negotiate the terms under which Acucela may co-promote the product.

Otsuka will make an undisclosed cash upfront payment to Acucela, as well as clinical development milestones and a royalty on sales of the product. Otsuka will be responsible for all clinical development and commercialization expenses.