Merck, also known as MSD, is set to expand its presence in ophthalmology, spending up to US$3 billion to acquire the ophthalmology-focussed biotechnology company, EyeBio.

EyeBio has a pipeline of clinical and preclinical candidates under development for the prevention and treatment of vision loss associated with retinal vascular leakage.

According to a statement released by Merck, the company’s lead candidate, Restoret (EYE103), is an investigational, potentially first-in-class tetravalent, tri-specific antibody that acts as an agonist of the Wingless-related integration site (Wnt) signalling pathway. Based on positive results from the openlabel Phase 1b/2a AMARONE study in patients with diabetic macular oedema (DMO) and neovascular age-related macular degeneration (nAMD), Restoret is anticipated to advance into a pivotal Phase 2b/3 trial to investigate the treatment of patients with DMO in the second half of 2024.

Under the terms of the agreement, Merck, through a subsidiary, will acquire all outstanding shares of EyeBio for up to $3 billion, including an upfront payment of $1.3 billion in cash and a further potential $1.7 billion in developmental, regulatory, and commercial milestone payments.

“The EyeBio team has successfully assembled a pipeline of novel candidates with the potential to provide new treatment options for patients with retinal disease,” said Dr David R. Guyer, chief executive officer and president of EyeBio. “As a subsidiary of Merck, EyeBio will be positioned to tap into the resources and infrastructure needed to support the clinical, regulatory, and commercial development of these candidates and help bring them to patients worldwide.”

The transaction is expected to close in the third quarter of 2024.