Ciba Vision Ophthalmics has formed a $10 million strategicalliance with InSite Vision Inc., giving Ciba co-exclusivelicenses to three InSite products and rights of first offer onfuture products.

The companies will collaborate on the development of otherproducts.

Slightly more than half of the deal, $5.4 million, is an equityinvestment in InSite, according to Harold Shlevin, Ciba's vicepresident of research, product and business development. CibaVision Ophthalmics of Atlanta, a division of Ciba Vision Corp.of the Ciba-Geigy Group, will hold a 12 percent equity stake inInSite and a seat on the board of the Alameda, Calif., company.Other terms were not disclosed.

InSite's products use a patented ophthalmic drug deliverysystem, trade named DuraSite.

"DuraSite is a polymer-based system in which drug moleculesare entrapped," said Shlevin. "When you place the DuraSitesystem in the eye, it is in a liquid form. It transforms from aliquid to a gel in the eye. The polymer then releases the drug ina controlled fashion as a result of bio-erosion." Shlevin saidthat with DuraSite, much smaller amounts of therapeutic canbe used than with conventional eye drops, where much of theliquid is flushed from the eye by tearing.

One of the licenses covered by the agreement is for an anti-inflammatory steroid that has received a letter of approvalfrom the Food and Drug Administration. It will be marketednext year, along with an over-the-counter dry eye preparationthat is also covered in the agreement. The third product, ananti-glaucoma drug, is in Phase III clinical trials and isexpected to reach the market in early 1994, according toChrista Nicholas, InSite group product director. -- Steve Usdin

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