Merck acquires EyeBio for $3B to enhance ophthalmology assets

Merck & Co. has bolstered its focus on eye diseases by acquiring Eyebiotech, a company dedicated to ophthalmology, for $3 billion. This acquisition involves an initial payment of $1.3 billion in cash and an additional $1.7 billion contingent on achieving certain milestones. This strategic move will allow Merck to expand its pipeline of treatments targeting vision loss, the most notable of which is Restoret (also known as EYE103). This leading asset is set to enter a phase 2b/3 clinical trial for diabetic macular edema (DME) later this year.

Restoret is a unique tetravalent, tri-specific antibody that activates the Wingless-related integration site (Wnt) signaling pathway. It has already undergone preliminary testing in a phase 1b/2a trial named AMARONE, which evaluated its effectiveness in treating DME and neovascular age-related macular degeneration. The upcoming phase 2b/3 trial will further assess its efficacy and safety.

EyeBio, a privately held company, emerged only three years ago with a mission to advance retinal disease therapies. It was founded by David Guyer, M.D., who currently serves as the CEO. Upon completion of the acquisition, Guyer and Chief Scientific Officer Tony Adamis, M.D., will transition to Merck. According to Guyer, being part of Merck will provide EyeBio with the necessary resources and infrastructure to support the clinical, regulatory, and commercial development of its promising candidates, ultimately benefiting patients worldwide.

This acquisition marks Merck's renewed commitment to the ophthalmology sector. Previously, Merck sold portions of its eye care business, first to Akorn Pharmaceuticals in 2013 for $52.8 million, which included several approved products, and then to Japan's Santen in 2014 for $600 million upfront. Despite these sales, Merck has recently made attempts to rebuild its portfolio in the eye diseases domain.

However, Merck's journey in this field has not been without challenges. The company faced a significant setback in 2022 when it decided to end most of its collaboration with NGM Biopharmaceuticals following a phase 2 trial failure. The two companies had been working on developing NGM621, an anti-complement C3 antibody aimed at treating geographic atrophy, a degenerative eye disease. This failure highlighted the difficulties inherent in advancing new treatments through clinical trials.

In summary, Merck's acquisition of Eyebiotech for $3 billion underscores its strategic investment in ophthalmology. This move is expected to enhance Merck's pipeline of vision loss treatments, with Restoret leading the charge. The addition of EyeBio's innovative therapies and experienced leadership will likely strengthen Merck's efforts to bring new eye disease treatments to market. Despite past challenges, Merck remains committed to advancing its portfolio in this critical area of healthcare.