Merck to Acquire EyeBio for $3 Billion to Expand into Multi-Billion-Dollar Ophthalmology Market

May 31, 2024 17:32 CST Updated 17:32

EyeBio

Ophthalmic Disease Therapeutics Developer

U.S. pharmaceutical giant Merck announced on May 29 EST that the company would acquire EyeBio, an ophthalmic biotechnology startup, for $3 billion to expand its ophthalmic product line. The acquisition has been unanimously approved by EyeBio's board of directors, and the transaction is expected to be completed in the third quarter of 2024.

Source: MSD Official Website

Best-selling Drug to Expire in 2028

Urgently Need to Expand and Diversify Product Lines

According to reports, Merck will initially pay $1.3 billion in cash and subsequently pay an additional $1.7 billion based on the achievement of certain milestones by EyeBio. As part of the deal, Merck will acquire full ownership of EyeBio's retinal disease drug, Restoret.

This is the latest in a recent series of acquisitions by Merck, aimed at reducing reliance on its star cancer treatment drug, Keytruda. Last year, over 40% of Merck's revenue—approximately $25 billion—came from Keytruda. This immunotherapy is the world’s best-selling drug, but its primary patent in the U.S. is set to expire in 2028.

Merck & Co. said in February that it hoped to reach $15 billion in deals in the market this year. The company's recent acquisitions include the $10.8 billion purchase of Prometheus Biosciences, which specializes in immunology development, in 2023, and the $1.3 billion acquisition of Elanco's aqua business in February this year.

Dr. Dean Y. Li, President of Merck Research Laboratories, stated that they will continue to implement a science-led business development strategy to expand and diversify their product pipeline. By combining the strengths of both companies, the development of EyeBio's candidate drugs for retinal diseases will be accelerated.

Targeting the Billion-Dollar Ophthalmic Healthcare Market

In addition to expanding Merck's pipeline, this acquisition also significantly expands the company's business in the ophthalmology field.

EyeBio is a clinical-stage ophthalmology company founded in August 2021, operating in the United States and the United Kingdom. It is dedicated to developing and delivering next-generation therapies to protect, restore, and improve vision for patients with vision-threatening eye diseases. To date, EyeBio has raised $130 million in Series A financing.

Restoret is EyeBio's leading clinical-stage drug designed to treat retinal diseases characterized by leakage, which can cause vision impairment or even blindness, with mid-to-late stage trials expected to commence in the second half of the year. Reportedly, this drug has the potential to generate billions of dollars in sales at its peak.

Restoret is injected once a month, which can restore the strength of the blood-retina barrier and prevent leakage. In February 2024, EyeBio announced positive Phase 1b/2a clinical data for Restoret. The data showed that this treatment can not only improve the vision of patients with AMD and DME but also reduce the thickness of edema, sparking a surge of interest from potential buyers in the company. Almost every patient demonstrated extensive improvement. A lot of the edema in these eyes disappeared, leading to retinal normalization in many cases.

Dr. David R. Guyer, CEO and President of EyeBio, stated: "The EyeBio team has successfully assembled a new series of drug candidates that have the potential to offer new treatment options for patients with retinal diseases. As a subsidiary of Merck & Co., EyeBio will be able to leverage the necessary resources and infrastructure to support the clinical, regulatory, and commercial development of these drug candidates, helping to bring them to patients worldwide."

Source: Xinkangjie

WorkAuthor: Huiling

Business Cooperation

130 6172 3098

zakk.cui@siqibest.com

ClickRead the original text Learn More