Aerie Pharmaceuticals (NASDAQ:AERI)
When Aerie Pharmaceuticals (NASDAQ:AERI) announced its agreement to be acquired by Alcon Pharmaceuticals (NYSE:ALC), the stock price exploded, outperforming all other medical stocks in the sector.
Aerie Pharmaceuticals (NASDAQ:AERI) shares have increased by 137.5% over the past month, outperforming the market’s 2.6% fall.
Alcon Pharmaceuticals (NYSE:ALC), a provider of vision care services, has agreed to acquire Aerie Pharmaceuticals (NASDAQ:AERI) for $15.25 per share, valuing the deal at about $770 million, as was previously revealed by Aerie. Because of this purchase, Alcon’s ophthalmology offerings will be much more robust.
The news led to a rise in share price as investors welcomed the premium offering.
Aerie Pharmaceuticals (NASDAQ:AERI) portfolio presently consists of two commercially available products: Rhopressa and Rocklatan, both used to treat glaucoma and/or ocular hypertension.
The franchise’s product hasn’t hit the big time in terms of sales, but it’s still profitable for Aerie Pharmaceuticals (NASDAQ:AERI). Recent financial guidance from Aerie indicates that the glaucoma franchise will bring in between $130 and $140 million for the full year of 2022.
Several of AERI’s pipeline prospects are in the later stages of development.
AERI’s pipeline candidate AR-15512 ophthalmic solution for treating signs and symptoms of dry eye illness was dosed on the first patient in the phase III COMET-3 study in early August (DED). The business plans to finish the AR-15512 registration program in 2023, and if the medicine is successful in clinical trials, it will submit an NDA to the FDA in 2024.
The sustained-release implant AR-13503 SR (a Rho kinase and protein kinase C inhibitor) is yet another product in the company’s pipeline. Wet age-related macular degeneration (AMD) and diabetic macular edoema (DME) are being studied in the first-in-human clinical trial of the candidate.
In addition to Rocklatan and Rhopressa, Alcon will gain access to AR-15512, AR-1105, AR-13503 Sr, and a pipeline of additional preclinical ophthalmic pharmaceutical product candidates as a result of the agreement.
Subject to the approval of Aerie Pharmaceuticals (NASDAQ:AERI) owners, the transaction is expected to close in the fourth quarter of 2022. With such a significant premium, though, shareholders are hardly likely to oppose the sale.
Featured Image- Megapixl @Pvl