Merck to Acquire EyeBio in a Deal Worth Up to $3 Billion
After a decade away, Merck will be re-entering the ophthalmology industry after agreeing to acquire privately-held Eyebiotech (EyeBio), maker of Restoret (EYE103), an investigational first-in-class treatment for retinal diseases.
Under the terms of the deal, Merck, through a subsidiary, will acquire all outstanding shares of EyeBio for up to $3 billion, including an upfront payment of $1.3 billion in cash and a further potential $1.7 billion in developmental, regulatory and commercial milestone payments. The acquisition has been unanimously approved by the EyeBio Board of Directors.
EyeBio is developing a pipeline of clinical and preclinical candidates for the prevention and treatment of vision loss associated with retinal vascular leakage, a known risk factor for retinal diseases. The company’s lead candidate, Restoret (EYE103), is an investigational, potentially first-in-class tetravalent, tri-specific antibody that acts as an agonist of the Wingless-related integration site (Wnt) signaling pathway. Based on positive results from the open-label phase 1b/2a AMARONE study in patients with diabetic macular edema (DME) and wet age-related macular degeneration (AMD), Restoret is anticipated to advance into a pivotal phase 2b/3 trial to investigate the treatment of patients with DME in the second half of 2024.
WIth blockbuster cancer immunotherapy Keytruda approaching a major patent cliff in 2028, Merck has been active in acquiring assets to diversify its therapeutic portfolio and pipeline. In additional to several smaller deals, Merck acquired Prometheus Biosciences for $10.8 billion last year, and Acceleron Pharma for $11.5 billion in 2021.
“We continue to execute on our science-led business development strategy to expand and diversify our pipeline,” Dr. Dean Y. Li, president, Merck Research Laboratories, said in a company news release. “The EyeBio team, under the leadership of Dr. David Guyer and Dr. Tony Adamis, has a strong track record of developing groundbreaking ophthalmology therapies. By combining our strengths, we aim to advance with rigor and speed the development of their promising pipeline of candidates targeting retinal diseases.”
“The EyeBio team has successfully assembled a pipeline of novel candidates with the potential to provide new treatment options for patients with retinal disease,” said David R. Guyer, MD, chief executive officer and president, EyeBio. “As a subsidiary of Merck, EyeBio will be positioned to tap into the resources and infrastructure needed to support the clinical, regulatory and commercial development of these candidates and help bring them to patients worldwide.”
The transaction is expected to close in the third quarter of 2024.
Founded in August 2021 by Dr. Guyer, M.D., and Tony Adamis, MD, and SV Health Investors, EyeBio has operations in the United States and the United Kingdom.
In 2013, Merck sold its US rights to three branded ophthalmic products—AzaSite, Cosopt, and Cosopt PF—to Akorn for $52.8 million in cash. In 2014, Merck fully divested its ophthamology portfolio in Japan and other Asia-Pacific and European markets to Santen for $600 million plus milestones. Those products included Cosopt; Cosopt PF; Trusopt; Trusopt PF; Timoptic; Timoptic PF; Timoptic XE; Saflutan; and Taptiqom. Merck previously acquired Inspire Pharmaceuticals in 2011, adding bacterial conjunctivitis drug Azasite to its portfolio.