Merck & Co. (MSD) will acquire ophthalmology-focused biotech Eyebiotech Limited (EyeBio), in a deal that could reach $3 billion.
Merck, through a subsidiary, will acquire all outstanding shares of EyeBio for up to $3 billion, which includes an upfront cash payment of $1.3 billion and a potential $1.7 billion in developmental, regulatory and commercial milestone payments.
For Merck, the deal will both expand its presence in ophthalmology and build its pipeline. EyeBio's clinical and preclinical candidates are focused on the prevention and treatment of vision loss associated with retinal vascular leakage, a known risk factor for retinal diseases.
Key to the deal is EyeBio's lead candidate, Restoret, is a potentially first-in-class tetravalent, tri-specific antibody that acts as an agonist of the Wingless-related integration site (Wnt) signaling pathway. The drug is expected to advance into a pivotal phase 2b/3 trial for patients with diabetic macular edema in the second half of 2024.
Merck has inked a handful of mega deals aimed at countering the anticipated loss of revenue from its best-selling cancer immunotherapy, Keytruda, which will lose patent protection in 2028. In 2022, the drugmaker paid $11.5 billion to pick up Massachusetts-based Acceleron Pharma in a bid to expand its rare disease portfolio. Last year, Merck acquired California-based biotech Prometheus Biosciences in a deal totaling $10.8 billion, eyeing its immune disease assets.