Viatris has closed its approximate $750-million acquisitions of two ophthalmology companies: Oyster Point Pharma, a Princeton, New Jersey-based bio/pharmaceutical company, and Famy Life Sciences, an Ahmedabad, Gujarat, India-based bio/pharmaceutical company. With the closing of the acquisitions, Viatris has established a new product franchise in ophthalmology under a new Eye Care Division. Viatris had first announced the acquisitions in early November (November 2022)   

Viatris says it anticipates that the acquisitions of Oyster Point Pharma and Famy Life Sciences will have the potential to add at least $1 billion in net sales and at least $500 million in adjusted earnings before interest, tax, and amortization (EBITDA) by 2028. Former Oyster Point Pharma CEO, Jeffrey Nau, Ph.D., MMS, will lead the new Viatris division. 

Oyster Point has one commercial product, Tyrvaya (varenicline solution), a nasal spray for dry- eye disease, which was approved by the US Food and Drug Administration in 2021.  It is also evaluating other indications for varenicline solution nasal spray, including neurotrophic keratopathy (a rare disease affecting the cornea), dry eye associated with contact-lens intolerance, and ocular surface preparation for refractive surgeries. Phase II results for varenicline for treating neurotrophic keratopathy were expected in the fourth quarter of 2022. In addition, the company has a pipeline of investigational gene therapies in development for treating select ocular surface diseases. 

Famy Life Sciences has six late-stage clinical assets in large disease areas such as dry eye, blepharitis (inflammation of the eyelids), and presbyopia (age-related farsightedness). In an unrelated move in 2015, Viatris (then Mylan Pharmaceuticals) acquired the women’s healthcare franchise of Famy Care (an associated company of Famy Life Sciences) for $800 million. 

Viatris acquired Oyster Point Pharma for approximately $415 million in cash up front, which included the $11 per share paid to Oyster Point Pharma stockholders through a tender offer and the repayment of the principal amount of certain debt of Oyster Point Pharma. In addition, each Oyster Point Pharma stockholder received one non-tradeable contingent value right, representing up to an additional $2 per share, or approximately $60 million in the aggregate, contingent upon Oyster Point Pharma’s achieving certain metrics based on full-year 2022 performance, which are expected to be determined in the first quarter of 2023.  

The aggregate acquisition price for the Famy Life Sciences business was approximately $280 million. 

Source: Viatris