Otsuka and Acucela enter Rebamipide agreement

Otsuka Pharmaceutical and Acucela have signed a co-development agreement for Rebamipide Opthalmic Suspension as a treatment for dry eye.

Discovered by Otsuka, the compound is currently undergoing phase III clinical trials in the US>

Under the terms of the agreement, both firms will work together to develop the compound, with Acucela leading efforts to gain regulatory approval for the drug in the US.

Otsuka will be responsible for all clinical development and marketing expenses.

Otsuka shall pay Acucela a cash upfront payment as well as clinical development milestones and a royalty on sales of the product. Otsuka shall be responsible for all clinical development and commercialization expenses.

In exchange, Otsuka will pay Acucela an initial cash payment, in addition to milestone payments for specified clinical development landmarks and royalty on product sales.

Taro Iwamoto, president and representative director of Otsuka Pharmaceutical, said: “We are delighted to enter into co-development of Rebamipide ophthalmic suspension with Acucela.”

He added that the company is well-known for its innovation and knowledge in ophthalmology, while the partnership will see both firms expand their commitment to improve the treatment options for patients with dry eye symptoms.

Last month, Otsuka Pharmaceutical announced a capital investment to purchase Interpharma Praha.