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Pharma giant Merck (NYSE:MRK) will buy ophthalmology biotechnology startup EyeBio for up to $3B, expanding its footprint in the growing eye-care segment, the Financial Times has confirmed.
The New Jersey-headquartered company will pay $1.3B in cash upfront, with additional $1.7B payments depending on the achievement of certain milestones, EyeBio CEO David Guyer told FT.
With operations in the U.S. and the U.K., EyeBio is a clinical stage ophthalmology company that develops therapies for eye diseases and is backed by U.K. venture capitalist Kate Bingham.
Restoret – EyeBio’s main clinical-stage drug – aims to treat retinal illnesses characterized by leakage that results in visual impairment, and even blindness. Bingham said the drug has the potential to earn several billion dollars in peak sales.
“We believe that to accelerate development and to get this important, potential drug to patients with these diseases as soon as possible, partnering with… Merck (MRK) made a lot of sense,” Guyer told FT. To note, EyeBio has raised $130M since it was founded in 2021.
In February, Merck (MRK) said it would pursue deals to expand its portfolio as its top-selling cancer treatment Keytruda will lose its patent protection by the end of the decade.
