Merck Completes Acquisition of EyeBio

Merck Acquires Eyebiotech Limited to Add Restoret to Its Late-phase Pipeline

Merck, one of the leading biopharmaceutical companies, has recently acquired Eyebiotech Limited, a subsidiary that diversifies and strengthens its late-phase pipeline. This acquisition is expected to expand Merck’s pipeline by adding Restoret, a potentially first-in-class late-phase candidate for diabetic macular edema (DME) and neovascular age-related macular degeneration (NVAMD).

The Science behind Restoret

Restoret is an investigational, potentially first-in-class tetravalent, tri-specific antibody developed for the treatment of certain retinal diseases. It acts as an agonist of the Wingless-related integration site (Wnt) signaling pathway, a pathway involved in retinal repair and vascular stabilization. Preclinical evidence indicates that agonizing the Wnt pathway in the retina reduces vascular leakage and improves retinal function. Restoret aims to eliminate vascular leakage in retinal diseases by restoring and maintaining the blood-retinal barrier.

Potential Benefits of Restoret

Restoret has shown promising results in the open-label Phase 1b/2a AMARONE study in patients with DME and NVAMD. The positive results have paved the way for the investigational drug to advance into the pivotal Phase 2b/3 trial to evaluate its potential for the treatment of patients with DME in the second half of 2024. The potential benefits of Restoret include reducing vascular leakage and improving retinal function.

Merck’s Commitment to Healthcare

Merck is a global biopharmaceutical company with a legacy of over 130 years in developing important medicines and vaccines. Merck’s purpose is to save and improve lives around the world by using the power of leading-edge science. The company aspires to be the premier research-intensive biopharmaceutical company globally and has a unified workforce dedicated to this purpose. Merck also operates responsibly every day to enable a safe, sustainable, and healthy future for all people and communities.

Financial Outlook and Risks Involved

The EyeBio acquisition is being accounted for as an asset acquisition, and Merck will record a charge of approximately $1.3 billion, or approximately $0.50 per share, in the third quarter of 2024. As a matter of policy, Merck updates its financial outlook once each quarter and will provide an update to its full-year outlook when it reports second-quarter 2024 results on July 30.

There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements. Risks and uncertainties include, among others, general industry conditions and competition, general economic factors, including interest rate and currency exchange rate fluctuations, challenges in new product development, manufacturing difficulties or delays, and financial instability of international economies and sovereign risk.

Conclusion

Merck’s acquisition of Eyebiotech Limited and its lead candidate, Restoret, is expected to strengthen and diversify its late-phase pipeline for the treatment of certain retinal diseases. This acquisition further underscores Merck’s commitment to using cutting-edge science to benefit humanity. Although there are risks and uncertainties involved in pipeline development, Merck is confident in its ability to bring innovative health solutions to those who need them most.

Originally Post From https://www.merck.com/news/merck-completes-acquisition-of-eyebio/