Alcon Signs $770 Million Deal to Acquire Aerie Pharmaceuticals

Swiss eye care company Alcon AG announced on Tuesday that it has entered into a definitive merger agreement with Aerie Pharmaceuticals (AERI.O) in a deal worth around $770 million.

This deal complements Alcon's dedication to the ophthalmic pharmaceutical industry and is anticipated to enhance the value of its diversified portfolio with broader pharmaceutical R&D capabilities.

According to the financial terms of the deal, Alcon has agreed to pay $15.25 per share, a premium of 37% to Aerie's last closing price. The transaction value was calculated based on Aerie's 49.36 million shares outstanding as of Aug. 22.

Under the terms of the acquisition, Alcon will add the commercial products Rocklatan® (netarsudil and latanoprost ophthalmic solution) 0.02%/0.005% and Rhopressa®(netarsudil ophthalmic solution) 0.02%, as well as AR-15512, a Phase 3 product candidate for dry eye disease, and a pipeline of several clinical and preclinical ophthalmic pharmaceutical product candidates.

The transaction builds on Alcon's recent entry into the ophthalmic pharmaceutical eye drop market, which also saw the company buy Simbrinza® from Novartis in April 2021 for the sole purpose of commercialization in the United States and Eysuvis® and Inveltys® from Kala Pharmaceuticals, Inc. in May 2022.

“Aerie is a natural fit with on-market and pipeline products, and R&D capabilities that offer the infrastructure needed to expand our ophthalmic pharmaceutical presence. As we continue to broaden our portfolio across glaucoma, retina and ocular surface disease, we are excited to help even more patients see brilliantly”, Alcon Chief Executive Officer David Endicott said in a statement.

The transaction was approved by the board of directors of each company, and it is expected to close in the fourth quarter of 2022, subject to the approval of Aerie’s stockholders and other regulatory approvals.