Mumbai:The country’s largest pharma company Sun Pharma on Wednesday acquired 100% equity in the US-based eye care specialist Ocular Technologies Sarl, owned by the private equity firm Auven Therapeutics, for a front payment of $40 million.

Sun will also pay more contingent on meeting drug development and sales milestones as well as tiered royalty on sales of Seciera for the company for accelerated development of breakthrough therapeutic drugs.

Currently, Ocular is developing Seciera for treating dry eye disease, the city-based company, adding the drug is currently in a Phase-3 confirmatory clinical trials. “This acquisition signifies continued momentum in enhancing our global branded specialty portfolio," Dilip Shanghvi, managing director of Sun Pharma said in a late evening statement.

“Coupled with our existing pipeline consisting of BromSite, DexaSite and Xelpros, this initiative will enable us to significantly expand its ophthalmic presence and reach millions of patients globally," he added.

Jerry Peter, vice-president and head of Sun Ophthalmics described the deal as “an important milestone for us, as a specialty business dedicated solely to the needs of eye care practitioners and their patients. This will widen our potential to expand existing portfolio. We hope to bring Seciera to ophthalmologists and optometrists globally, the market for which is estimated to touch $5 billion worldwide by 2020."

The transaction is subject to approval of the US Federal Trade Commission as required under the Hart-Scott-Rodino Act and other closing conditions, and is expected to be completed by end of 2016. PTI