This Biopharma Stock Surges After Offloading Its Ophthalmic Eye Drop Portfolio

  • Alcon AG ALC has agreed to acquire Eysuvis (loteprednol etabonate suspension) 0.25% pharmaceutical eye drops from Kala Pharmaceuticals Inc KALA.
  • Eysuvis will complement the Systane family of eye drops, including the recently launched Systane Preservative-Free formulations now available in a convenient, multi-dose bottle. 
  • While the Systane family is used for ongoing management of dry eye symptoms, Eysuvis will provide Eye Care Professionals (ECPs) with an option for short-term treatment to mitigate dry eye disease.
  • The FDA approved Eysuvis in January 2021 as the first-and-only corticosteroid indicated for up to two weeks of treatment of the signs and symptoms of dry eye disease. 
  • Alcon will also acquire Inveltys (loteprednol etabonate suspension) 1%, twice-a-day treatment of post-operative inflammation and pain following ocular surgery.
  • Under the terms of the agreement, Alcon will pay $60 million in upfront consideration and may be required to make additional contingent payments upon achieving certain commercial milestones. 
  • The transaction will close in Q3 2022.
  • FY21 revenues for Eysuvis and Inveltys were $6.3 million and $4.9 million, respectively.
  • Price Action: KALA shares are up 16.8% at $0.75 during the premarket session on Monday's last check, and ALC closed higher by 0.62% at $72.68 on Friday.
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