HomeInvesting NewsThis Is Why Shares of Aerie (AERI) Have Surged by 205.6% in...

This Is Why Shares of Aerie (AERI) Have Surged by 205.6% in the Last Three Months

Published on

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

See Disclaimer Please

Latest News

Recent Surge in Tesla Stock: Exactly What Caused It?

Tesla Stock (NASDAQ:TSLA) As of 11:30 a.m ET on Friday, Tesla stock was up 2.3%...

Here’s Why Carvana Stock Fell Quite So Much as 23.7% This Week

Carvana Stock (NYSE:CVNA) According to data provided by S&P Global Market Intelligence, Carvana stock fell...

Here’s Why Tellurian Stock Is Rising Again Today

Tellurian Stock (NYSEMKT:TELL) Tellurian stock was up 6.5% as of 11:06 p.m. ET today after...

Is It Time to Buy Chewy Stock?

Chewy Stock (NYSE:CHWY) Pet supplies are one of the few consumer goods that do well,...

More like this

2 Casino Stocks You Should Consider

With a recession on the horizon, investors must be more selective than ever. Analysts...

(Exxon Mobil Stock) Exxon Ceo Warns Biden Administration Against Restricting Fuel Exports

Exxon (Exxon Mobil Stock) opposes calls for oil corporations to reduce international exports and...

Apple Stock Loses $120 Billion Because of a Rare Downgrade

Apple stock just took a significant knock after it was once considered to be...

Meta Stock Tops Morningstar List of the Most Undervalued Stocks 

Morningstar compiled a list of the most undervalued stocks among those with a large...

Hd Stock up as Foundation to Contribute Up to $1 Million to Aid Communities Affected by Hurricane Ian

HD stock was trading at $280.23 as of 12:55 PM EDT. The Home Depot Foundation...

Making the Cut: Micron (Micron Stock)

Micron Technology Inc (Micron Stock) latest outlook brings expectations back to normal, although the...