pSivida secures US$15m, US Medicare rebate approved

pSivida has secured US$15 million (AUD$20 million) in additional funding from a New York institutional investor to assist in the development of its platform technology BioSilicon.

"The goal is to extend patent life for existing generic drugs, using our BioSilcon drug delivery system," said pSivida's investor relations manager, Brian Leedman.

"This is being done in collaboration will Cirrus Pharmaceutics in the US," he said.

pSivida signed the one year renewable contract deal with Cirrus Pharmaceutics in September this year.

The currently undisclosed institutional investor will receive an effective conversion price of US$7.10 per American Depository Receipt (AUD$0.95 per ordinary share). The transaction is subject to shareholder approval and the closing is anticipated to occur in mid November.

Retisert US Medicare rebate

Hot on the heels of pSivida's merger agreement with Control Delivery Systems (CDS) announced earlier this week, Retisert -- CDS' intravitreal drug implant for the treatment of the sight-threatening inflammatory disease uveitis -- has been approved for a full US Medicare rebate.

"This now potentially places this revolutionary treatment for blindness in the hands of the estimated 175,000 Americans who suffer from this debilitating disease," said Leedman.

According to pSivida the alternate treatment involves complicated laser eye surgery.

Retisert was approved as a single-indicated orphan drug by the US FDA in April for uveitis. The product is marketed by Bausch & Lomb and was launched in June this year. Retisert is currently priced at US$18,250 for a treatment period of 30 days and CDS anticipates receiving royalties for the drug from Bausch & Lomb.