Alcon to Acquire Aerie Pharmaceuticals
In another move to bolster its glaucoma portolio and expand its pharmaceutical offerings, Alcon announced it is acquiring Aerie Pharmaceuticals for about $770 million, or $15.25 per share—a premium of 37% to Aerie’s lastest closing price. The transaction was approved by the board of directors of each company.
The transaction is anticipated to close in the fourth quarter of 2022, subject to the approval of Aerie’s stockholders and the satisfaction of customary closing conditions.
Through the transaction, Alcon will add the commercial products Rocklatan (netarsudil and latanoprost ophthalmic solution 0.02%/0.005%), and Rhopressa (netarsudil ophthalmic solution 0.02%). Rocklatan is a fixed dose combination of the Rho kinase inhibitor, netarsudil, and a prostaglandin F2α analogue, latanoprost, indicated for the reduction of elevated IOP in patients with open-angle glaucoma or ocular hypertension. Rhopressa is a Rho kinase inhibitor indicated for the reduction of elevated IOP in patients with open-angle glaucoma or ocular hypertension. In most markets outside the US, commercialization rights for both products have been licensed to Santen SA and its affiliates.
Aerie’s most recent financial guidance for total glaucoma franchise net product revenue is $130-140 million for full year 2022. In 2021, Aerie reported glaucoma revenues of
The deal also includes phase 3 product candidate, AR-15512, which is being evaluated as a treatment for the signs and symptoms of dry eye disease (DED). In addition, Aerie holds a pipeline of several clinical and preclinical ophthalmic pharmaceutical product candidates, including three retinal implants—AR-1105, AR-13503 SR and AR-14034 SR—for AMD and DME.
The transaction is the latest in a series of moves from Alcon expanding its presence in the ophthalmic pharmaceutical eye drop space. In April 2021, Alcon acquired the exclusive U.S. commercialization rights to Simbrinza (brinzolamide/brimonidine tartrate ophthalmic suspension 1%/0.2%) from Novartis for $355 million. In May 2022, Alcon paid $60 million to acquire Kala Pharmaceuticals' commercial portfolio, which includes dry eye drug Eysuvis (loteprednol etabonate suspension 0.25%), and Inveltys (loteprednol etabonate suspension 1%) for the treatment of postoperative inflammation and pain following ocular surgery. Earlier this year, Alcon also finalized its acquisition of Ivantis, developer of the Hydrus Microstent, for $475 million upfront, plus milestone payments.
In a news release, Alcon said the deal is expected to add broader pharmaceutical R&D capabilities to the company's existing commercial expertise, maximizing the value of its portfolio.
“Alcon is passionate about innovative treatments in eye care, especially in core disorders such as glaucoma and dry eye, which have significant patient impact,” said David Endicott, CEO of Alcon. “We have a 75-year history focused specifically on the eye and bring established expertise in development and commercial execution. Aerie is a natural fit with on-market and pipeline products, and R&D capabilities that offer the infrastructure needed to expand our ophthalmic pharmaceutical presence. As we continue to broaden our portfolio across glaucoma, retina and ocular surface disease, we are excited to help even more patients see brilliantly.”
“We are excited to be joining Alcon, a recognized leader in eye care. I am so proud of the Aerie team and the innovation we’ve pioneered,” said Raj Kannan, Chief Executive Officer of Aerie Pharmaceuticals. “Alcon is the right strategic and financial partner to maximize the potential of Aerie’s commercial franchise and our growing portfolio of pipeline assets. Alcon’s global infrastructure, financial resources, and commercial capabilities will accelerate the standard of care by helping more patients have access to Aerie’s innovative products. I am confident that this combination with Alcon is in the best interest of patients and our shareholders.”