Laval, Quebec-based Bausch Health Cos. Inc. acquired the license to develop and commercialize Novaliq GmbH's eye disease drug NOV03 in the U.S. and Canada.

NOV03, or perfluorohexyloctane, is an experimental medicine being developed to treat dry eye disease associated with meibomian gland dysfunction.

Meibomian glands secrete oils into the tears so that they do not evaporate too quickly. The glands can malfunction due to blockage or some other abnormality, which causes a lack of enough oil in the tears, resulting in dry eyes. Symptoms of the disease include irritation, redness and easily fatigued eyes, blurred vision may also occur.

An eight-week mid-stage study of the drug showed positive results improving a variety of symptoms in the patients treated. While a phase 3 study is underway, Bausch plans to initiate an additional late-stage study in 2020.

While the companies mentioned upfront and certain milestone payments to be received by Novaliq in a Dec. 20 press release, further financial terms of the agreement were not disclosed.

German company Novaliq is a privately held pharmaceutical that focuses on developing drugs to treat eye disease.