By Lisa Seachrist

Washington Editor

Cambridge NeuroScience Inc. and Allergan Inc. signed a deal to extend a 1996 collaboration to develop compounds capable of protecting the retina and optic nerve from the damage associated with glaucoma.

The 12-month extension of the deal calls for Allergan to pay Cambridge, Mass.-based Cambridge NeuroScience $1.25 million in research support and provides for potential milestones worth up to $16 million should the companies develop a new drug.

"We were very pleased Allergan extended this collaboration," said Harry Wilcox, president and CEO of Cambridge NeuroScience. "This has been a nice collaboration for us; it's one to use as a model for future collaborations."

Allergan will be responsible for all clinical development and Cambridge NeuroScience will receive milestones and royalties should any drugs result.

Glaucoma, which is characterized by increased pressure in the eye, is the second leading cause of preventable blindness in the world. Current therapies for glaucoma focus on lowering the pressure within the eye to prevent damage to the retina and optic nerve.

The Cambridge NeuroScience compounds are ion channel blockers aimed at allowing the retina and optic nerve to withstand the lower oxygen conditions accompanying the increased intraocular pressure. Animal models of glaucoma show these compounds do protect the retina and optic nerve.

"We'll be providing additional chemistry in response to the results of glaucoma assays run by Allergan," Wilcox said. "We are hopeful that we will end up with a lead compound to take into clinical development at the end of the year."

Cambridge NeuroScience's stock (OTC:CNSI) closed at 96 cents Monday, up 4 cents.