Pittsburgh-based Viatris announced Monday it had acquired Oyster Point Pharma and Famy Life Sciences for up to $700-$750 million in cash to create what it expects to be an ophthalmology franchise.
The deal, which will close in the first quarter of 2023, is expected to have the potential to add $1 billion in sales and at least $500 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2028.
“Two years into our journey as Viatris, I am extremely pleased with the strength and execution of our business,” Viatris Executive Chairman Robert J. Coury said. “After seven straight quarters of delivering strong results, we are well on our way to completing all Phase 1 commitments and can now turn our focus to setting up for Phase 2 – 2024 and beyond.”
As part of the agreement, Viatris will acquire Oyster Point for $11 per share in cash up front, with each Oyster Point stockholder receiving one non-tradable contingent value right, equal to an additional $2 per share contingent upon Oyster Point achieving certain metrics.
“When we started Oyster Point Pharma in 2017, we embarked on a journey to build a leading company within the eye care space,” Oyster Point CEO Jeff Nau, Ph.D. said: “Building on our success in the U.S. market, we are excited to join Viatris to now bring the strengths of Oyster Point to help build a leading global ophthalmology business. We believe that together we will meaningfully shape the future of eye care to address the unmet needs of patients with ophthalmic disease and the eye care professionals who take care of them.”