Glaukos has signed an agreement to acquire ophthalmic pharmaceutical and medical technology firm Avedro in an all-stock transaction.
The deal will combine two complementary, hybrid ophthalmic pharmaceutical and device organisations, allowing the creation of a new corneal health franchise for Glaukos.
With the transaction, Glaukos can also expand its R&D capabilities, as well as strengthen multiple corneal health and vision correction development initiatives.
Avedro president and CEO Reza Zadno said: “Glaukos already has deep customer relationships with the majority of our target accounts, and a large, seasoned field organisation that can unite with our team to accelerate awareness, adoption and utilisation of our novel platform.”
Avedro’s platform restricts progression of keratoconus
Avedro’s platform applies bio-activated and single-use Photrexa drug formulations to strengthen corneal tissue and restrict progression of keratoconus, a degenerative corneal ectatic disease.
The company has also developed a line of novel single-application bio-activated topical ophthalmic pharmaceuticals for common refractive conditions, including presbyopia, low myopia, and post-cataract refractive error.
Under the deal, Avedro shareholders will secure an exchange ratio equivalent of 0.365 shares of Glaukos stock for each share of common stock they own.
Subject to Avedro stockholder approval along with other customary closing conditions and regulatory approvals, the deal is expected to be completed in the fourth quarter of this year.
Upon completion of the deal, Glaukos shareholders are expected to hold around 85% of the combined company, while the remaining 15% stake is expected to be owned by Avedro shareholders.
Glaukos president and CEO Thomas Burns said: “Avedro has in place many of the same strategic attributes Glaukos used to pioneer MIGS, including proprietary paradigm-changing solutions, extensive clinical validation, broad reimbursement and first-to-market status.
“Our combined organisations can possess the essential expertise, scale and reach to maximize these opportunities, drive further commercialisation of Avedro’s bio-activated pharmaceuticals and establish another synergistic and durable Glaukos franchise to fuel potential near- and long-term growth and shareholder value.”
Glaukos is an ophthalmic medical technology and pharmaceutical firm, which is involved in the development of novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. – NS Medical Devices