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ESCONDIDO, Calif.—TearLab Corp., a leader in diagnostics for dry eye disease (DED), said its acquisition by Accelmed Partners II (AP-II) has closed. The tentative deal between the companies and a $25 million investment by the Accelmed was announced in May, as VMAIL reported. "This is a promising new chapter for TearLab,” chief executive officer Seph Jensen said. “Our investment into a wider portfolio of DED diagnostics and treatments will not only offer physicians a broader range of DED management strategies, but also strengthens our leadership position as experts in the dry eye space.”

The terms of the deal call for TearLab to delist from the "over-the-counter" stock market. In addition, TearLab and its senior secured lender, CR Group, agreed to restructure the terms of the company's outstanding senior secured indebtedness.

As a newly formed private company, TearLab is now positioned to pursue further development of its next-generation Discovery platform and to seek out targeted acquisition opportunities that support a comprehensive portfolio to better meet DED market dynamics and patient care needs, the announcement noted.

"We are very excited to close this transaction with TearLab,” Accelmed Partners' general partner Lior Shav said in the announcement. “Over the past years we spent many days listening to ophthalmologists and optometrists and learning their needs. We are investing in an exceptional team that is primed to execute directly against some of the most important and frequently mentioned unmet needs.”

Shav added, "Working together, Accelmed and TearLab management will combine unique skills and expertise to create a stronger company poised to succeed in the DED market."

The global DED market is projected to grow from $4.42 billion in 2018 to $7.73 billion by the end of 2026. An increasing number of dry eye clinical trials, new therapeutic options coupled with continued investment in research and development activities, provide strong tailwinds to support this tremendous market opportunity in the coming years.

"Diagnosis and management of ocular surface disease, blepharitis, and DED is important, not only because of patient complications associated with these conditions, but also our growing awareness of the relationship between DED and quality of vision,” Francis S. Mah, MD, director of cornea service at Scripps Clinic (La Jolla, CA) and Chair of ASCRS Cornea Clinical Committee, said. "I am delighted TearLab is pursuing a comprehensive portfolio as both eyecare professionals and patients alike will benefit from a greater understanding of this disease."

DED is the most common chronic ophthalmic disorder. TearLab's years of experience and research in DED strongly position the company to provide the eyecare community with meaningful advances in this under-resourced and under-served market.