Merck Acquires EyeBio in $3 Billion Deal to Expand Ophthalmology Pipeline

Merck Acquires EyeBio in $3 Billion Deal to Expand Ophthalmology Pipeline

RAHWAY, N.J. – Merck, a leading pharmaceutical company, is making strategic moves to further solidify its position in the healthcare industry. With its blockbuster cancer drug, Keytruda, already dominating the market, Merck has set its sights on expanding its portfolio with the acquisition of EyeBio, an ophthalmology-focused biotechnology company.

The deal, valued at up to $3 billion, includes an upfront payment of $1.3 billion in cash and additional milestone payments of $1.7 billion based on developmental, regulatory, and commercial achievements. This acquisition marks a significant step for Merck in enhancing its presence in the ophthalmology sector.

EyeBio is known for its pipeline of clinical and preclinical candidates aimed at preventing and treating vision loss associated with retinal vascular leakage, a common risk factor for retinal diseases. The company’s lead candidate, Restoret™ (EYE103), is set to enter a pivotal Phase 2b/3 trial for the treatment of patients with diabetic macular edema (DME) later this year.

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.”

In addition to bolstering its pipeline, the acquisition of EyeBio will also expand Merck’s expertise in ophthalmology. The company plans to leverage EyeBio’s innovative research and development capabilities to address unmet medical needs in the field of retinal diseases.

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 connection with the transaction.

With this strategic move, Merck is demonstrating its commitment to advancing healthcare solutions and improving patient outcomes in the ophthalmology space. Stay tuned for further developments as Merck and EyeBio work together to bring innovative treatments to market.