HEALTH CARE : Allergan to Make, Sell New Ophthalmic Product Under License

Allergan Inc. has had its eye on a certain prescription drug for several months now and apparently likes what it sees.

Under a licensing agreement just signed with a New Jersey drug company, Allergan says, it will be making and selling a “topical ophthalmic” salve for the treatment of “serious dry eye conditions.” The drug, called cyclosporine A, is now being marketed by its inventor, Sandoz Pharmaceuticals of East Hanover, N.J., for organ transplants. As an immunosuppressant, the drug prevents organ rejections.

Allergan spokesman Shel Holtz said that the Irvine-based maker of eye-and skin-care products will develop its own version for eye doctors. The product will need to undergo clinical trials and receive approval by the U.S. Food and Drug Administration. There was no immediate word on how long that might take.

Terms of the business agreement are not being disclosed yet, Holtz said, though he noted that the new eye drug could tap a $40-million market.

“The feeling is that there was potential for the eye-care market,” he said. “So we came to an agreement to develop it.”