Merck Finalizes EyeBio Purchase
The acquisition in the ophthalmology space features a $1.3 billon cash payment, with the potential for an additional $1.7 billion if various milestones are met.
Image Credit: Adobe Stock Images/VictoriaKey.com
Merck has now officially acquired Eyebiotech Limited (EyeBio), a clinical-stage ophthalmology biotech company.1 As a result of owning all of EyeBio’s outstanding shares, the deal is valued as high as $3 billion; this includes a cash payment of $1.3 billion, along with the possibility for an additional $1.7 billion in developmental, regulatory ,and commercial milestone payments.
The deal was previously announced in late May, during which the parties reached a definitive agreement for the transaction to get completed.2
“The EyeBio acquisition further diversifies our late-stage pipeline with the addition of a promising candidate based on novel biology and genetics for the treatment of certain retinal diseases,” said Dr. Dean Y. Li, president, Merck Research Laboratories. “We are excited to welcome the EyeBio team and look forward to working together to advance Restoret for the patients that need it.”
A major focal point of the acquisition has been Restoret (EYE103), EyeBio’s lead candidate. Essentially, it is what EyeBio is describing as an “investigational, potentially first-in-class tetravalent, tri-specific antibody that acts as an agonist of the Wingless-related integration site (Wnt) signaling pathway.” In fact, its open-label Phase Ib/IIa AMARONE study in patients with diabetic macular edema (DME) and neovascular age-related macular degeneration (NVAMD) presented promising results, allowing Restoret—in the second half of 2024—to enter into a Phase IIb/III trial that would assess its ability to treat DME patients.
Aside from Restoret, there are other pipeline candidates in the works that would help to prevent and treat vision loss due to retinal vascular leakage, which is one of the retinal disease’s risk factors.
“The EyeBio team has successfully assembled a pipeline of novel candidates with the potential to provide new treatment options for patients with retinal disease,” commented Dr. David R. Guyer, EyeBio’s CEO 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.”
From a macro perspective, the EyeBio acquisition establishes Merck as a player in the ophthalmology space, and with the help of Guyer and Dr. Tony Adamis—the duo founded the company—will help take efforts to further the clinical development of Restoret and other ongoing development programs to the next level.
“Less than three years ago, EyeBio was hatched to translate Dr. David Guyer’s idea for a potential new therapy for retinal diseases into a reality,” noted Kate Bingham, EyeBio board chair and managing partner, SV Health Investors. “This agreement reflects the hard work of the talented EyeBio team, led by Dr. Guyer, who through this agreement have placed Restoret on a defined development path to patients.”
In other Merck-related news, Merck Animal Health recently closed a deal to purchase Elanco Animal Health’s aqua business for $1.3 billion in cash,3 a deal originally announced by Pharmaceutical Commerce back in February.4 The acquisition features a portfolio of medicines and vaccines, supplements, and nutritionals intended for aquatic species; the acquisition also includes two aqua manufacturing facilities in Canada and Vietnam, along with a research facility in Chile.
References
1. Merck Completes Acquisition of EyeBio. Merck. July 12, 2024. Accessed July 12, 2024. https://www.merck.com/news/merck-completes-acquisition-of-eyebio/#:~:text=EyeBio%20is%20now%20a%20wholly,%2C%20president%2C%20Merck%20Research%20Laboratories
2. Merck to Acquire EyeBio. Business Wire. May 29, 2024. Accessed July 12, 2024. https://www.businesswire.com/news/home/20240529808692/en
3. Merck Animal Health Completes Acquisition of Elanco’s Aqua Business. Merck. July 9, 2024. Accessed July 12, 2024. https://www.merck.com/news/merck-animal-health-completes-acquisition-of-elancos-aqua-business/
4. Merck Animal Health Inks $1.3 Billion Deal for Elanco’s Aqua Brand. Pharmaceutical Commerce. February 5, 2024. Accessed July 12, 2024. https://www.pharmaceuticalcommerce.com/view/merck-animal-health-inks-1-3-billion-deal-for-elanco-s-aqua-brand
