Pfizer strikes a deal with pSivida

pSivida has signed a $165 million collaborative research and licensing agreement with Pfizer for its controlled drug delivery technologies in ophthalmic applications.

The two companies will work together on a joint research programme aimed at developing ophthalmic products using pSivida's sustained drug delivery technology, which includes Medidur. Medidur is a small injectable device designed for the sustained release of drugs, which is currently being studied for the treatment of diabetic macular oedema.

Pfizer will fund the cost of the program and in return will gain an exclusive license to market all products developed as a result of this research. Meanwhile, pSivida will receive up to $155 million in development and sales related milestones, and will also be paid a royalty on net sales of the products.

Pfizer has also agreed to invest a further $5 million in ordinary shares of pSivida upon entering into the license agreement, as well as an additional $5 million in pSivida common equity in the future, subject to certain conditions.