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Viatris acquires two companies for $750 million to sharpen ophthalmology vision

Viatris acquisition

HQ Team

November 8, 2022: Viatris Inc., a US-based healthcare company, announced it is acquiring Oyster Point Pharma and Fame Life Sciences for about $750 million in all cash to strengthen its push into the ophthalmology franchise market.

Viatris has agreed to acquire Oyster Point for $11 per share in cash upfront through a tender offer, according to a company statement.

Each Oyster Point stockholder will receive one non-tradeable contingent value right, representing up to an additional $2 per share. 

“This will depend on Oyster Point achieving certain metrics based on the full year 2022 performance.”

Close by Q1

Viatris is targeting to close the acquisition of Oyster Point in the first quarter of 2023., subject to receipt of regulatory approval and tender acceptance of more than 50% of Oyster Point shares.

The Company is also acquiring Famy Life Sciences, which has a complementary ophthalmology portfolio.

Viatris expects “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, the company anticipates adding at least $500 million in adjusted EBITDA by 2028.”

Ophthalmology is one of the key therapeutic areas of focus that the Company identified in February, according to the statement.

Oyster Point knows the ophthalmology space from a clinical, medical, regulatory and commercial perspective, and its commercial asset, Tyrvaya, for treating dry eye disease is a plus, according to Viatris.

Phase III-ready pipeline

Famy Life Sciences’ Phase III-ready pipeline, the Company believes, has the foundation to create a leading global ophthalmology franchise.

The ophthalmology franchise will function as a separate division within the company and be led by current Oyster Point CEO Jeff Nau, upon the transaction’s closing.

“These acquisitions bring us an innovative growth asset, Tyrvaya, and five additional Phase III or Phase III-ready programs that give us a significant head-start in creating a leading ophthalmology franchise,” Viatris CEO Michael Goettler said.

Viatris expects a February 27, 2022, transaction with India’s Biocon Biologicals “to close shortly.”

Biocon Biologics acquired Viatris’ biosimilars business for $3.335 billion, including a cash value of $2.335 billion and compulsorily convertible preference shares in Bicon Biologicals valued at $1 billion.

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