On Wednesday Eastern Time, US pharmaceutical giant Merck&Gamble announced that it will acquire eye biotechnology startup EyeBio for $3 billion to expand its ophthalmic pharmaceutical product line. The acquisition has been unanimously approved by EyeBio's board of directors. In the US stock market, Merck's stock price fell by about 0.2%.
It is reported that Merck will first pay $1.3 billion in cash, and will then pay an additional $1.7 billion based on the achievement of certain EyeBio goals. As part of the transaction, Merck will acquire ownership of EyeBio Retinal Disease Drug Restoret.
(Source: MSD official website)
This is the latest acquisition in Merck's recent series, aimed at reducing reliance on the star cancer treatment drug Keytruda.
Last year, over 40% of Merck's revenue (approximately $25 billion) came from Keytruda, the world's best-selling immunotherapy, but its main patent in the United States is set to expire in 2028.
Merck&Matheson stated in February that it hopes to achieve $15 billion in transactions in the market this year. The company's recent acquisitions include the acquisition of Prometheus Biosciences, which excels in immunology development, for $10.8 billion in 2023, and the acquisition of Elanco's Aqua business for $1.3 billion in February this year.
Dr. Dean Y. Li, President of Merck Research Laboratories, stated that he will continue to implement a science led business development strategy to expand and diversify his product line. By combining the strengths of the two companies, he will accelerate the EyeBio team's development of candidate drugs for retinal diseases.
EyeBio was founded in August 2021 and is a clinical ophthalmology company operating in the United States and the United Kingdom. Its aim is to develop a diverse portfolio of product candidates for unmet medical needs in eye diseases, with the support of British venture capitalist Kate Bingham.
Restoret is EyeBio's main clinical drug aimed at treating retinal diseases characterized by leakage, which can lead to visual impairment and even blindness. It is expected to enter mid to late stage trials in the second half of the year. It is reported that this drug may earn billions of dollars during peak sales.
EyeBio CEO David Guyer said, "We believe it makes sense to collaborate with Merck to accelerate research and development and make this important and promising drug available to patients with these diseases as soon as possible."
BMO Capital Markets analyst Evan Seigerman wrote in a research report that Merck's acquisition of EyeBio will enhance its influence in the field of ophthalmology.
Seigerman added that although this transaction is relatively small, we are encouraged by Merck's continued progress in diversifying its revenue base before the expiration of the Keytruda patent.