Merck Finalizes EyeBio Acquisition

Merck, known as MSD outside the United States and Canada, has successfully completed the acquisition of Eyebiotech Limited, now a wholly-owned subsidiary of Merck. This acquisition aims to enhance and diversify Merck’s pipeline, adding Restoret™, a novel late-phase candidate targeting diabetic macular edema (DME) and neovascular age-related macular degeneration (NVAMD), along with other preclinical candidates.

Dr. Dean Y. Li, president of Merck Research Laboratories, emphasized the strategic benefits of the acquisition, highlighting Restoret's potential in treating specific retinal diseases. The EyeBio team is poised to collaborate with Merck in advancing the development of Restoret, bringing new hope to patients in need.

Restoret™ (EYE103) stands out as an investigational, potentially first-in-class antibody with tetravalent and tri-specific properties. It functions as an agonist of the Wingless-related integration site (Wnt) signaling pathway. Positive results from the Phase 1b/2a AMARONE study in patients with DME and NVAMD have positioned Restoret to advance into a pivotal Phase 2b/3 trial by the second half of 2024. This trial aims to further evaluate its efficacy in treating patients with DME.

EyeBio's pipeline includes clinical and preclinical assets focused on preventing and treating vision loss due to retinal vascular leakage, a significant risk factor for various retinal diseases.

Under the terms of the agreement, Merck acquired all outstanding shares of EyeBio through a subsidiary. The transaction, accounted for as an asset acquisition, will result in Merck recording a charge of approximately $1.3 billion, or around $0.50 per share, in the third quarter of 2024. This charge will be included in Merck's non-GAAP results. As per its policy, Merck will update its financial outlook each quarter and will provide an update to its full-year financial outlook when it reports second-quarter 2024 results.

Restoret is designed to address the unmet medical needs of patients suffering from retinal diseases like DME and NVAMD. Administered via intravitreal injection, Restoret aims to eliminate vascular leakage in the retina by activating the Wnt pathway, thereby restoring and maintaining the blood-retinal barrier. Preclinical evidence suggests that activating the Wnt pathway in the retina may effectively reduce vascular leakage.

Merck, known as MSD outside of the U.S. and Canada, leverages cutting-edge science to save and improve lives globally. With a legacy spanning over 130 years, Merck has been at the forefront of developing crucial medicines and vaccines. The company's commitment to innovative health solutions aims to advance the prevention and treatment of diseases in both humans and animals. Merck fosters a diverse and inclusive global workforce and operates responsibly to ensure a sustainable and healthy future for all communities.

This acquisition marks a significant step for Merck in expanding its research capabilities and addressing critical unmet needs in retinal disease treatments. The collaboration with the EyeBio team and the development of Restoret signifies a promising future for patients suffering from debilitating retinal conditions.