Viatris Inc. announced Monday that it intends to create an ophthalmology franchise by acquiring Oyster Point Pharma and Famy Life Sciences.
Under the terms of a definitive agreement, Viatris has agreed to acquire Oyster Point for $11 per share in cash upfront through a tender offer. In addition, each Oyster Point stockholder will receive one non-tradeable contingent value right, representing up to an additional $2 per share contingent upon Oyster Point's achieving certain metrics based on full year 2022 performance.
Viatris is targeting to close the acquisition of Oyster Point in Q1 2023, subject to customary closing conditions, including receipt of regulatory approval, and tender acceptance of more than 50% of Oyster Point shares.
Concurrently, Viatris also expects to acquire Famy Life Sciences, which has a complementary ophthalmology portfolio.
The company anticipates these acquisitions have the potential to add at least $1 billion in sales by 2028. As a result of the expected strong top-line growth, Viatris anticipates it will also add at least $500 million in adjusted EBITDA by 2028.
Together, the two acquisitions have an aggregate purchase price of approximately $700-$750 million which Viatris expects to fund with cash on hand.
Ophthalmology is one of the key therapeutic areas of focus that the company identified in February.
With the combination of Viatris' global commercial footprint, R&D and regulatory capabilities and supply chain, along with Oyster Point's deep knowledge of the ophthalmology space from a clinical, medical, regulatory and commercial perspective—including a commercial asset, Tyrvaya, for the treatment of dry eye disease— and Famy Life Sciences' phase 3-ready pipeline, Viatris believes it has the foundation to create a leading global ophthalmology franchise, accelerating efforts to address the unmet needs of patients with ophthalmic disease and the eye care professionals who treat them.
The ophthalmology franchise will function as a separate division within the company and will be led by current Oyster Point CEO, Jeff Nau PhD., upon the closing of the transaction.