Alimera Sciences (ALIM) Announces Ocumension Therapeutics Acquired Exclusive License Worth up to $99M, Makes $10M Investment
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Alimera Sciences, Inc. (NASDAQ: ALIM) announced today that Ocumension Therapeutics, a company focused on developing and commercializing innovative ophthalmology therapies in China and Asia, has acquired an exclusive license agreement for Alimera’s 0.19mg fluocinolone acetonide intravitreal implant, which Alimera markets elsewhere under the trademark ILUVIEN®. The license grants Ocumension the rights to develop and commercialize the product for the treatment of diabetic macular edema and other retina diseases (excluding uveitis) in the Greater China territory and other Western Pacific countries under Ocumension’s own distinct trademark. Additionally, Ocumension has made a $10 million equity investment in Alimera via a private offering.
Under the terms of the exclusive license agreement, Alimera may receive a total of up to $99 million, including an upfront payment of $10 million and a potential $89 million in sales-based milestone payments. In exchange, Ocumension will receive exclusive rights to develop and commercialize the product under its own branded label in Mainland China, Hong Kong SAR, Macau SAR, Taiwan District, South Korea, Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Alimera will also be the exclusive supplier of product to Ocumension for commercial sale at an agreed upon transfer price.
“We are excited about this opportunity with Ocumension to continue our strategy of geographic expansion. Diabetes and its complications are a growing issue, with a third of the total number of people with diabetes living in the Western Pacific1. We look forward to working with Ocumension to help patients suffering from diabetic macular edema in these markets to see better, longer, with fewer injections,” said Rick Eiswirth, Alimera’s President and Chief Executive Officer. “Additionally, the initial license fee combined with Ocumension’s equity investment significantly strengthens our balance sheet and provides incremental financing to pursue our vision of creating a unique global company solely focused on retina specialists and their patients.”
“Our agreement with Alimera allows us to expand our ophthalmology product portfolio with another best-in-class, unique and proven ophthalmic therapy to address the unmet need of durable therapy in the treatment of diabetic macular edema,” said Ye Liu, Chief Executive Officer of Ocumension.
Under the terms of a share purchase agreement, Ocumension has purchased 1,144,945 shares of Alimera’s common stock at a price of approximately $8.73 per share, or $10 million in total.
Ocumension has agreed to issue to Alimera 1,000,000 non-transferable warrants granting Alimera the right for a period of four years to subscribe to up to an aggregate of 1,000,000 shares of Ocumension stock at the subscription price of HK$23.88 per warrant share (or approximately US$3.07 per warrant share converted to U.S. Dollars at the April 9, 2021 exchange rate of .12853 U.S. Dollars per HK$), subject to adjustment. The issuance of the warrants to Alimera is subject to certain conditions precedent.
For more details on the terms of the Ocumension transactions, please see Alimera’s Current Report on Form 8-K, which Alimera expects to file with the SEC promptly after issuing this press release.
1 Data from the International Diabetes Federation, Diabetes Atlas 9th edition, prevalence of diabetes (20-79 years), 2019.
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