Santen to Acquire Topical Ophthalmic Products Company Eyevance for $225 Million Under Terms of Share Purchase Agreement

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OSAKA, Japan and FORT WORTH, Texas—Santen Pharmaceutical Co. Ltd. and Eyevance Holdings have announced that Santen Holdings U.S. Inc., a wholly-owned subsidiary of Santen, and Eyevance Holdings entered into a share purchase agreement where Santen Holdings acquires all of the outstanding shares of Eyevance Pharmaceuticals Holdings. Since its inception in 2017, Eyevance has worked to develop and commercialize topical ophthalmic products targeting the ocular surface and anterior segment. Within this area of focus, Eyevance currently offers anti-inflammatory, anti-allergic, anti-fungal, anti-infective/anti-inflammatory fixed combination, and tear lubricant products.

Eyevance's current commercialization strategy is supported by a national sales team exclusively targeting ophthalmologists, optometrists and allergists throughout the U.S.

The transaction has been closed simultaneously with the execution of the agreement, with a purchase price of $225 million and paid all in cash, thereby making Eyevance a wholly-owned subsidiary of Santen. Visovanq (sterile vancomycin ophthalmic ointment) and Nexagon (ophthalmic gel for persistent corneal epithelial defects), both of which were being developed by Eyevance, were carved out of the transaction with Santen and are excluded from this purchase, according to the announcement.

“We're very pleased to have entered into this agreement," Santen president and chief executive Shigeo Taniuchi said in the announcement. “Through this purchase, we will quickly establish a business base in the U.S. and both humbly face and further contribute to the needs of a greater number of patients by offering more value. At the same time, we will accelerate global business rollout by gaining access to the U.S. and our presence in the market, aiming for even further corporate growth and contribution to ophthalmic treatments for people around the world.”

"Eyevance is proud of its accomplishments over the past three years and looks forward to joining Santen, one of the leading ophthalmic companies worldwide, with its innovative R&D expertise and legacy of global success,” Eyevance Pharmaceuticals co-founders Jerry St. Peter and Jason Werner said in the announcement (Eyevance Pharmaceuticals is a wholly-owned subsidiary of Eyevance).

“We are excited to become part of Santen's U.S. organization, to work in collaboration to further strengthen the existing commercial business. As Eyevance embarks on this new journey with Santen, we sincerely appreciate the Eyevance team and its shareholders for their unwavering support and continuous pursuit of excellence."

The financial impact of this agreement on Santen's FY 2020 and medium-term earnings forecasts is “expected to be minor,” according to the announcement.