Alcon to buy Aerie Pharmaceuticals for $770M

Alcon has begun a deal to acquire Aerie Pharmaceuticals, which will bolster its ophthalmic pharmaceutical portfolio and add broader R&D capabilities. The deal is valued at about $770 million.

Alcon will gain 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 deal complements the company’s expansion into the ophthalmic pharma eye drop space, including acquisitions of exclusive U.S. commercialization rights to Simbrinza from Novartis in April 2021 and Eysuvis and Inveltys from Kala Pharmaceuticals in May 2022.

“Alcon is passionate about innovative treatments in eye care, especially in core disorders such as glaucoma and dry eye, which have significant patient impact,” David Endicott, CEO of Alcon told the press. “We have a 75-year history focused specifically on the eye and bring established expertise in development and commercial execution. 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.”

“We are excited to be joining Alcon, a recognized leader in eye care. I am so proud of the Aerie team and the innovation we’ve pioneered,” added Raj Kannan, CEO of Aerie Pharmaceuticals. “Alcon is the right strategic and financial partner to maximize the potential of Aerie’s commercial franchise and our growing portfolio of pipeline assets. Alcon’s global infrastructure, financial resources, and commercial capabilities will accelerate the standard of care by helping more patients have access to Aerie’s innovative products. I am confident that this combination with Alcon is in the best interest of patients and our shareholders.”

Rocklatan is a fixed dose combo of the Rho kinase inhibitor, netarsudil, and a prostaglandin F2α analogue, latanoprost, indicated to reduce elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. Rhopressa is a Rho kinase inhibitor indicated for reduction of elevated IOP in patients with open-angle glaucoma or ocular hypertension.

Based on recent financial guidance, Aerie is expected to generate $130-140 million in 2022 for its glaucoma product franchise. The transaction is expected to close in Q4. Medical Product Outsourcing