Vancouver's QLT Inc. (TSX:QLT; Nasdaq:QLTI) has bought the rights for a proprietary ocular drug delivery system for $42 million.
Under the deal, QLT will buy ForSight Newco II Inc. for the rights to its delivery system, which is considered a leading platform to fight glaucoma, an ocular disease commonly caused by diabetes.
ForSight's system can deliver drugs into the eye in a controlled release, which can replace eye drops to treat glaucoma, dry eye, allergies and post-operative care.
In addition to the one-time payment, QLT will pay milestone instalments consisting of $5 million following the Phase 3 clinical trial of the delivery system and $20 million following the product's commercialization.
The deal is expected to close early in 2007's fourth quarter and is subject to customary closing conditions.
QLT's share price range during the past week: between $5.34 and $5.77; 52-week high: $11.67; 52-week low: $5.28.