Allergan has acquired Topokine Therapeutics, the makers of XAF5 ointment for the reduction of undereye bags and other topical medicines for fat reduction.

Under the terms of the agreement, Allergan acquired Topokine Therapeutics for an upfront payment of $85 million and success-based development and sales milestones for XAF5, a first-in-class topical agent in late-stage development for the treatment of undereye bags.

Applied to the lower eyelids once nightly, XAF5 penetrates the skin and acts pharmacologically on fat cells to shrink undereye bags.  It selectively binds a G protein-coupled receptor to modify one of the pathways involved in lipid metabolism and adipocyte maturation.

In XOPH5-OINT-2, a Phase 2 randomized, placebo-controlled clinical trial, XAF5 met the primary endpoint achieving statistically significant and clinically meaningful reductions in undereye bags. In January 2016 Topokine initiated XOPH5-OINT-3, a pivotal Phase 2b/3 study of XAF5.

Topokine’s pipeline also includes TAT4 Gel, which increases subcutaneous fat and is entering Phase 2 development as a topical filler for reduction of nasolabial folds.