ALAMEDA, Calif.—InSite Vision Inc. (OTCBB: INSV), based here, announced Monday, June 8, 2015, that it has reached a definitive agreement with QLT Inc., (NASDAQ: QLTI) (TSX: QLT) a Canadian biotechnology company, under which QLT will acquire InSite in an all-stock transaction. The merger will create an ophthalmic specialty pharmaceutical company with a diversified portfolio of products and full research-and-development capabilities.

InSite Vision plans to promptly file a New Drug Application (NDA) later this week with the U.S. Food and Drug Administration (FDA) for marketing approval of its drug candidate BromSite to reduce post-operative inflammation and prevent pain following cataract surgery, according to a statement from the company. In addition, the company will continue its Phase 3 clinical trial of QLT091001, QLT’s Orphan Drug and FDA Fast Track designated retinoid product candidate for the treatment of inherited retinal diseases in the first half of 2016. The merged companies also expect to file a second NDA for InSite Vision’s DexaSite for the treatment of blepharitis in 2016.

The newly formed company will be incorporated in Canada and led by a combined InSite Vision and QLT leadership team. With operations in Alameda, Calif., and Vancouver, British Columbia, and headquarters in Vancouver, the new company will retain the name of QLT, and it will continue to trade on NASDAQ under the ticker “QLTI” and on the Toronto Stock Exchange (TSX) under the ticker “QLT.”

“The new company created by this merger will be a well-funded pure play ophthalmic specialty company with a robust pipeline of late-stage drug candidates and a strong cash balance,” said Timothy Ruane, chief executive officer of InSite Vision. The combined company expects to have approximately $70 million in cash after closing.

“The InSite Vision team has repeatedly demonstrated its ability to efficiently execute on ophthalmic drug development, and I am excited to see our retinoid product have the opportunity to progress in a similar manner under our combined leadership,” said Jason Aryeh, chairman of QLT.