Merck & Co Inc (NYSE:MRK, ETR:6MK) announced it is acquiring Eyebio, a privately held ophthalmology-focused biotech firm, in a deal valued up to $3 billion.
Through a subsidiary, Merck will acquire Eyebio for an upfront payment of $1.3 billion in cash with a further potential $1.7 billion in development, regulatory and commercial milestone payments.
EyeBio is advancing a pipeline of clinical and preclinical candidates for the prevention and treatment of vision loss associated with retinal vascular leakage, which is a known risk factor for retinal diseases.
The acquisition includes the company's lead drug candidate Restoret, a novel late-phase candidate for diabetic macular edema and neovascular age-related macular degeneration, as well as a preclinical pipeline targeting retinal diseases.
Restoret will enter a pivotal Phase 2b/3 study for diabetic macular edema in the second half of the year.
“We continue to execute on our science-led business development strategy to expand and diversify our pipeline,” said Dr. Dean Li, president, Merck Research Laboratories.
“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.”
EyeBio CEO Dr. Guyer added: “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.”
Following the acquisition announcement, shares of Merck traded flat at about $126.