Ocuphire and Opus Genetics Merge for IRD Gene Therapy Development

Ocuphire Pharma has announced the acquisition of Opus Genetics, resulting in the formation of a new biotech firm committed to advancing gene therapy for inherited retinal diseases (IRDs). This newly formed organization will operate under the name Opus Genetics.

As part of the merger agreement, Ocuphire has issued 5.2 million common stock shares alongside 14,100 shares of convertible preferred stock to the shareholders of Opus Genetics. These preferred shares can be converted into common stock, subject to approval at Ocuphire’s annual meeting set for April 2025. Following the merger, Ocuphire’s original stockholders will maintain a 58% stake in the fully diluted capital of the combined entity, while Opus Genetics’ shareholders will possess nearly 42%.

Ben Yerxa, the newly appointed president of the combined company, expressed optimism about the merger, stating that the integration of Ocuphire’s expertise in late-stage ophthalmic drug development and regulatory processes with Opus Genetics’ strengths positions the new company to rapidly advance its gene therapy pipeline targeting IRDs. Yerxa emphasized the merger as a significant step forward for patients suffering from these retinal conditions, with plans to advance their joint pipeline effectively.

The expanded pipeline of the newly formed company includes gene therapy assets based on adeno-associated virus (AAV) technology specifically designed for IRDs. Additionally, the company will continue to develop Ocuphire’s late-stage candidate RYZUMVI (phentolamine ophthalmic solution 0.75%), intended to treat conditions such as presbyopia and vision disturbances in low-light conditions following keratorefractive surgery. RYZUMVI functions by reducing pupil size through the inhibition of alpha-1 receptors on the radial iris dilator muscles.

The financial outlook for the combined company appears robust, with an anticipated cash flow that will extend until 2026. This financial stability is expected to support the completion of various clinical trials and the achievement of multiple data readouts over the coming years.

Leerink Partners acted as the exclusive financial advisor to Ocuphire during the merger process. Legal counsel for Ocuphire was provided by Sidley Austin, while Smith Anderson served as the legal advisor for Opus Genetics.

In 2022, Opus Genetics entered an agreement with National Resilience aimed at the development and manufacturing of AAV vector-based gene therapies for IRD. This collaboration underscores Opus Genetics’ commitment to leveraging advanced genetic technologies to address unmet needs in retinal diseases.

The merger between Ocuphire Pharma and Opus Genetics marks a significant milestone in the field of gene therapy for IRDs. The combined expertise and resources of the two companies are set to accelerate the development of transformative treatments, offering new hope to patients worldwide who suffer from inherited retinal diseases.