Japanese healthcare company Astellas Pharma Inc (OTC:ALPMY) has agreed to buy Iveric Bio Inc (NASDAQ:ISEE) for $40.00 per share in cash for a total equity value of approximately $5.9 billion.

Iveric Bio focuses on discovering and developing novel treatments in the field of ophthalmology. Astellas expects the deal to advance its primary focus on "Blindness & Regeneration."

Related: IVERIC Bio's Geographic Atrophy Candidate Shows Significant Reduction In Disease Progression.

The company announced in February 2023 that the FDA accepted a marketing application seeking approval for Avacincaptad Pegol (ACP) to treat geographic atrophy (GA) secondary to age-related macular degeneration (AMD).

The agency granted a priority review of ACP with a PDUFA date of August 19, and if approved, the treatment could be commercialized by the end of this year.

ACP, branded as Zimura, targets the C5 protein suspected in causing the growth of scarring associated with the disease.

Astellas expects that the acquisition of Iveric Bio will not only contribute to Astellas' FY2025 revenue targets set in its Corporate Strategic Plan 2021 but also that ACP, in conjunction with fezolinetant and PADCEV, is anticipated to be a revenue-generating pillar to help compensate for the decline in sales of Xtandi due to anticipated patent expiration later this decade.

Astellas will fund the Iveric purchase via bank loans, commercial paper amounting to about ¥800 billion, and existing cash. 

Price Action: ISEE shares are up 17.9% at $38.79 during the premarket session on the last check Friday.