Merck acquires eyecare specialist Inspire
pharmafile | April 6, 2011 | News story | Research and Development, Sales and Marketing | Inspire, Merck, eye care
Merck & Co is to buy ophthalmic specialist Inspire Pharmaceuticals in a $430 million deal which sees it move further into eyecare.
The news comes after last month’s decision by the FDA to review Merck’s investigational preservative-free prostaglandin analogue ophthalmic solution, Saflutan (tafluprost).
The Inspire deal works by “strengthening our ophthalmology business and positioning us for future growth with an expanded portfolio”, according to Beverly Lybrand, Merck’s senior vice president, neuroscience and ophthalmology.
Inspire’s two main brands are Azasite (azithromycin) indicated to treat bacterial conjunctivitis, and Elestat (epinastine), for the prevention of ocular itching associated with allergic conjunctivitis.
Inspire chief executive Adrian Adams believes the company’s sales operation will be of particular value to Merck, praising the “strong relationships within the ophthalmic community cultivated by our high quality, specialty eye care sales force in the US”.
“Merck is the ideal partner to enhance the long-term potential of Inspire’s portfolio,” Adams added.
In addition to its two main products, Inspire receives royalties on net sales of Restasis (cyclosporine ophthalmic emulsion) 0.05% and Diquas Ophthalmic Solution 3% (diquafosol tetrasodium) in Japan.
Merck will make a tender offer for all outstanding common stock of Inspire at $5 per share in cash – a 26% premium to the closing price on April 4.
The boards of both companies are squarely behind the move, and Warburg Pincus Private Equity IX, which owns 28% of Inspire, will put its shares into the pot.
This support should push Merck towards getting its hands on the majority of Inspire’s outstanding shares, which is a key condition of closing the transaction. Merck would then acquire all remaining shares through a second-step merger.
“This deal helps address the needs of patients and customers in ophthalmology and creates value for both companies,” added Lybrand.
Adam Hill
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