Sun Pharma buys InSite Vision to strengthen ophthalmic business in US

Sun Pharmaceutical Industries Ltd has entered into an agreement to buy InSite Vision Inc, which focuses on developing new specialty ophthalmic products, including three late stage programs. Sun Pharma is in the process of establishing a branded ophthalmic business in the US. This proposed acquisition of InSite Vision, coupled with the recent in-licensing of Xelpros (latanoprost BAK-free eye drops) in June 2015, are steps in this direction. These deals give Sun Pharma access to four late stage branded ophthalmic products in the US.
 
The transaction has a total equity value of approximately US$48 million on fully diluted basis plus related debt and other transaction costs. For the 6 month period ended June 30, 2015, InSite Vision recorded revenues of US$ 3.8 million, an EBITDA loss of US$ 6.4 million and a net loss of US$ 7.5 million.
   
InSite Vision has developed the DuraSite and DuraSite2 drug delivery platforms which are capable of extending the duration of drug retention, thus resulting in lower dosing frequency, and potentially enhanced efficacy. Based on this technology, InSite Vision has developed a pipeline of late-stage clinical candidates, and has recently filed a New Drug Application (NDA) with the US FDA for BromSite (0.075% bromfenac) for the treatment of inflammation and prevention of pain associated with cataract surgery. It plans to file another NDA in 2017 for DexaSite (0.1% dexamethasone) for the treatment of non-bacterial blepharitis, a common ocular condition for which there is no approved product currently available. It’s AzaSite Plus is currently in phase-3 clinical development for the treatment of eye infections, and ISV-101 is in phase 1/2 clinical development for dry-eye disease and inflammation.
 
InSite Vision also has two commercialised products based on its innovative DuraSite platform approved for the treatment of bacterial eye infections, AzaSite (azithromycin ophthalmic solution) 1%, and Besivance (besifloxacin ophthalmic suspension) 0.6%, marketed by respective partners.
 
Kal Sundaram, CEO of Sun Pharma’s North American Business said “This potential acquisition is a part of our overall objective of transitioning to a specialty company. Besides Dermatology, we have identified ophthalmics as one of the key segments for establishing our branded presence in the U.S.”