Merck Acquires EyeBio in $3 Billion Deal to Expand Ophthalmology Pipeline
RAHWAY, N.J. – Merck, a leading pharmaceutical company, is making strategic moves to expand its portfolio beyond its blockbuster cancer drug, Keytruda. In a recent announcement, Merck revealed its plans to acquire EyeBio, an ophthalmology-focused biotechnology company, in a deal worth up to $3 billion.
The acquisition, which has been unanimously approved by the EyeBio Board of Directors, includes an upfront payment of $1.3 billion in cash and additional potential payments of $1.7 billion based on developmental, regulatory, and commercial milestones. This move signifies Merck’s commitment to diversifying its pipeline and exploring new avenues for growth.
EyeBio is known for its innovative pipeline of clinical and preclinical candidates aimed at preventing and treating vision loss associated with retinal vascular leakage, a common risk factor for various retinal diseases. The company’s lead candidate, Restoret™ (EYE103), is set to enter a pivotal Phase 2b/3 trial for the treatment of diabetic macular edema (DME) in the second half of 2024.
By acquiring EyeBio, Merck not only strengthens its presence in the ophthalmology space but also gains access to a talented team of researchers and leaders, including founders Dr. David Guyer and Dr. Tony Adamis. The merger is expected to enhance Merck’s capabilities in developing novel treatment options for patients with retinal diseases.
Dr. David R. Guyer, CEO and President of EyeBio, expressed optimism about the acquisition, stating, “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 proposed acquisition is subject to regulatory approval and is expected to close in the third quarter of 2024. Merck anticipates recording a charge of approximately $1.3 billion in non-GAAP results upon completion of the transaction.
With this strategic move, Merck is poised to expand its footprint in the ophthalmology market and drive innovation in the treatment of retinal diseases.