InSite and Inspire in ocular antibiotic deal

InSite Vision, a specialist developer of drugs for ophthalmic indications, has signed a licensing agreement with fellow USA-based company Inspire Pharmaceuticals, which will see the latter commercialize the former's broad-spectrum antibiotic AzaSite (1% azithromycin). The accord, which covers both the USA and Canada, will initially focus on the drug's development as a treatment for conjunctivitis.

Under the terms of the deal, InSite will receive an upfront license fee of $13.0 million, with an additional $19.0 million in milestones contingent on the product being approved by the Food and Drug Administration. Additionally, Inspire will pay 20% royalties on net sales of the drug in the USA and Canada, which increases to 25% after the first two years.

Commenting on the deal, S Kumar Chandrasekaran, InSite's chief executive, said that the move would allow it to pursue additional anti-infective products and indications worldwide, using its patent-protected DuraSite drug-delivery vehicle.