Santen Acquires Eyevance Pharmaceutical
In a move to enter the US pharmaceuticals market and expand its global presence, Santen announced it has acquired Eyevance Pharmaceutical for $225 million in cash.
In the deal, Santen Holdings U.S. Inc., a wholly-owned subsidiary of Santen, will acquire all of the outstanding shares of Eyevance Pharmaceuticals Holdings. Eyevance will become a wholly-owned subsidiary of Santen.
Formed in 2017, Eyevance develops and commercializes topical ophthalmic products targeting the ocular surface and anterior segment. Eyevance currently offers anti-inflammatory, anti-allergic, anti-fungal, anti-infective/anti-inflammatory fixed combination, and tear lubricant products. Eyevance’s current commercialization strategy is supported by a national sales team exclusively targeting ophthalmologists, optometrists, and allergists throughout the U.S.
“Strategically, when you look at the two companies getting together, this is a great partnership,” Jerry St. Peter, co-founder, CEO & Director of Eyevance, said in an interview with Eyewire News. “It’s going to further advance the opportunity to grow commercially in the United States. We’re going to leverage our existing products with Tobradex ST, Zerviate, Flarex, Natacyn, and Freshkote PF. You also have the ability to leverage the robust pipeline and expertise of Santen. They have a great legacy, especially in glaucoma and retina. You take that, along with the commercial prowess of Eyevance in the anterior segment and ocular surface, and you put that together and you have many shots on goal in many therapeutic areas within the United States.”
“We’re very pleased to have entered into this agreement,” Shigeo Taniuchi, Santen President and CEO, said in a company news release. “Through this purchase, we will quickly establish a business base in the U.S. and both humbly face and further contribute to the needs of a greater number of patients by offering more value. At the same time, we will accelerate global business rollout by gaining access to the U.S. and our presence in the market, aiming for even further corporate growth and contribution to ophthalmic treatments for people around the world.”
Visovanq (sterile vancomycin ophthalmic ointment) and Nexagon (ophthalmic gel for persistent corneal epithelial defects), both of which were being developed by Eyevance, were carved out of the transaction with Santen and are excluded from this purchase.
The financial impact of this agreement on Santen’s FY 2020 and medium-term earnings forecasts is expected to be minor.
Mr. St. Peter said the acquisition will have no effect on Eyevance’s customers or employees. It will continue operating under the Eyevance name and its operations will remain in Fort Worth, Texas.