CS Pharmaceuticals (CSP) has acquired AxeroVision for an undisclosed fee, in a move that will involve a dry eye disease (DED) candidate being transferred over to the UK-based ocular therapeutics company.

CSP, which is headquartered in London but develops and commercialises treatments for eye diseases in China, will continue developing AXR-270, a selective glucocorticoid receptor agonist. The drug has been in a phase of developmental dormancy. In August 2021, AxeroVision released positive Phase II results for the candidate in 129 patients with DED with meibomian gland dysfunction (MGD).

In a statement announcing the 2021 results, AxeroVision – which spun out from GSK in 2016 – said it was planning to enrol around 800 patients in a Phase III trial comparing the eye cream with a vehicle, and a new drug application/marketed authorisation application filing expected in 2024. However, the company did not issue any further updates on the drug since then.

AXR-270, which CSP now has exclusive rights to use in ophthalmology, is applied as a cream once daily to the eyelid. The cream formulation helps overcome limitations with eyedrops. Eyedrops need to be dosed four times a day and the drug can be lost from the application area due to tearing. AXR-270 is absorbed into the meibomian gland and is delivered to the eye surface each time the patient blinks.

The incidence, or the number of new cases in a given population, of DED in Asia is approximately 17%. A sales forecast by GlobalData estimates that the 2028 dry eye disease drug market in the Asia-Pacific region will be worth $9.3bn.

Darren Mercer, chief executive at CSP said: “On the basis of the very unique product features and strong phase II clinical data, we strongly believe that AXR-270 will provide huge clinical benefits to patients. Having secured the global rights, we will now seek a partner for ex-China rights to collaborate with, in the development of AXR-270 for the USA, Europe and other markets.”