pSivida to receive up to $168 million plus royalties under revised deal with Pfizer; starts new clinical study

USA-based drug delivery firm pSivida (Nasdaq: PSDV; ASX:PVA) says it has amended its 2007 $165 million R&D deal with global drugs behemoth Pfizer (NYSE: PFE) to focus solely on the development of a long-term, sustained-release implant to deliver latanoprost for patients with ocular hypertension and glaucoma.

The proposed implant is a bioerodible version of pSivida's proprietary Durasert technology system and is designed to be injected into the subconjunctival space of the eye, meaning it would be naturally absorbed by the body and would not need to be removed surgically.

Under this revised accord, Pfizer will make an initial payment of $2.3 million. pSivida will, with technical assistance from Pfizer, have the right to develop the glaucoma product candidate through Phase II clinical trials. At that point, Pfizer may exercise its option for an exclusive, worldwide license to develop and commercialize the product candidate in return for a $20 million payment, double-digit royalty payments on any sales of the product and additional development, regulatory and sales performance milestone payments of up to $146.5 million.