Dublin, Ireland-based Allergan is shelling out $125 million on US medical device group Oculeve and its dry eye disease development programmes.

The all-cash transaction secures the firm’s access to Oculeve’s flagship offering OD-01, a non-invasive nasal neurostimulation device that increases tear production in patients with dry eye disease, a condition thought to affect 25 million people in the US. 

Oculeve has completed four clinical studies of OD-01 in more than 200 patients, showing positive safety and efficacy, and Allergan plans to carry out an extra two pivotal trials in oder to file for approval in the US, expected in 2016 with potential commercial launch the year after.

As per the deal, which is expected to complete in the third quarter, Oculeve also stands to gain commercialisation milestone payments related to the OD-01. Allergan says its 2015 earnings-per-share forecast is unchanged as a result of the acquisition.