Health care company offers $295 million for Ophthalmology Co.

Health care company offers 5 million for Ophthalmology Co.

Shares of Oyster Point Pharma Inc. traded 38.5% higher yesterday after the company reported it had agreed to be acquired by Viatris Inc. for $11.00 per share along with a contingent value right for a possible additional payment. up to US$2.00 per share.

Biopharmaceutical company focused on ophthalmology Oyster Point Pharma Inc. (OYST: NASDAQ)yesterday Announced entered into a definitive agreement to be acquired by Viatris Inc. (VTRS: NASDAQ) in an all-cash transaction for US$11.00 per share.

Oyster Point Pharma is a commercial-stage biopharmaceutical firm focused on developing and commercializing therapeutics for use in the treatment of eye diseases.

The firm has developed a multi-dose nasal spray formulation called TYRVAYA® (varenicline solution) which, in October 2021, received approval from the US Food and Drug Administration (FDA) for use in the treatment of the signs and symptoms of dry eye disease.

According to the report, Viatris has opted to purchase Oyster Point Pharma to form the basis of its new and growing ophthalmology franchise. Viatris’ interest is multifaceted and, in addition to obtaining the rights to TYRVAYA® nasal spray (varenicline solution) from Oyster Point, it hopes to benefit from the addition of Oyster’s exceptionally talented staff and other assets and programs in the product development pipeline. of Oyster Point.

Through a tender offer process, Viatris has agreed to purchase all of the outstanding shares of Oyster Point Pharma at a price of US$11.00 per share in cash.

In addition, the company will pay existing Oyster Point common shareholders a contingent value right (CVR) of up to $2.00 per share if Oyster Point Pharma meets specified performance targets for fiscal 2022.

The final value of the CVR will be based on commercial sales derived from TYRVAYA during FY/22. If TYRVAYA net product revenue is US$21.6 million or more and at least 131,822 total prescriptions are written, the CVR will be final for an additional US$1.00 per share in cash.

In the event that net income from products exceeds US$24.0 million or more and 146,469 prescriptions are issued in total, then the CVR will include an additional US$2.00 per share in cash.

Therefore, if all conditions associated with the CVR are met, based on a total of 26.83 million shares outstanding, the transaction would be valued at approximately US$348.79 million.

Viatris CEO Michael Goettler commented, “Oyster Point Pharma brings to Viatris the strength of TYRVAYA nasal spray, the first and only FDA-approved nasal spray for dry eye in the US. Extensive knowledge of the ophthalmology space from a clinical, medical, regulatory and commercial perspective.

Oyster Point Pharma Chairman and CEO Jeffrey Nau, Ph.D., MMS, commented, “We are pleased to announce the proposed acquisition of Viatris from Oyster Point Pharma, recognizing the exciting opportunities that lie ahead…With the capabilities Viatris global assets and commitment to ophthalmology, we look forward to expanding TYRVAYA’s impact on the dry eye landscape and accelerating our exciting pipeline of projects.

With our combined industry expertise, innovation, scale, pipeline and global business reach, we look forward to building a world-class ophthalmology business to significantly shape the future of eye care for the benefit of patients.”

Therefore, if all conditions associated with the CVR are met, based on a total of 26.83 million shares outstanding, the transaction would be valued at approximately US$348.79 million.

The report indicates that Oyster Point Pharma’s board of directors has already unanimously approved the transaction, which is expected to close in the first quarter of 23. The transaction remains subject to Oyster Point shareholder approval, ordinary closing conditions and regulatory approval.

The report stated that a block of current Oyster Point Pharma shareholders, who collectively own around 46% of Oyster Point’s outstanding shares, have agreed to offer all of their respective shares in support of the Viatris deal.

The firm described TYRVAYA® (varenicline solution) 0.03 mg nasal spray as “a highly selective cholinergic agonist that is FDA-approved to treat the signs and symptoms of dry eye disease as a multidose nasal spray.”

The company stated that dry eye disease is a chronic condition whose prevalence is increasing. Multifactorial ocular surface disease affects approximately 38 million people in the US and is characterized by numerous persistent symptoms, which may include blurred vision, burning sensations, eye fatigue, itching, sensitivity to light, and a feeling of dizziness. itching due to the alteration of the tear film.

Oyster Point Pharma is a commercial-stage biopharmaceutical company headquartered in Princeton, New Jersey. The company is engaged in discovering, developing and promoting medicines for use in the treatment of ophthalmic diseases.

The company’s main asset is TYRVAYA® nasal spray (varenicline solution), for which the company received US FDA approval in October 2021 for use in the treatment of dry eye disease . The company is currently investigating TYRVAYA in a phase 2 clinical study as a potential treatment for neurotrophic keratopathy.

Oyster Point started yesterday with a market capitalization of around $224.0 million, with approximately 26.8 million shares outstanding and a short holding of around 6.3%. OYST shares opened 38% higher yesterday at $11.56 (+$3.21, +38.44%) above Monday’s closing price of $8.35. The stock was trading between US$11.52 and US$11.83 per share and closed at US$11.57 (+US$3.22, +38.56%).

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