As per the terms of the licensing deal, Allergan will fund phase 3 development of tavilermide.
Mimetogen will receive an upfront payment of $50m from Allergan. The deal also includes potential milestone payments and royalties depending on the product’s commercialization.
Tavilermide is a small cyclic peptidomimetic of NGF protein in the eye, which maintains corneal nerves and epithelium.
It induces the production of mucin, a naturally occurring component of the tear film, and works upstream before inflammation.
Allergan executive vice president and president of global brands research and development David Nicholson said: "Tavilermide brings a novel approach to treating the signs and symptoms of dry eye disease by enhancing the ocular tear film.
"If approved, tavilermide would provide another exciting new treatment option for patients suffering with dry eye and further strengthen our dry eye portfolio and pipeline."
In a Phase 2 trial, tavilermide showed significant improvements in both signs and symptoms with 1% tavilermide versus placebo, together with strong safety, comfort and tolerability profiles.
Tavilermide is currently being evaluated in two multi-center Phase 3 clinical studies in the US.