Viatris Bolsters Its Ophthalmology Franchise With Oyster Point Pharma Deal, Shares Surge

Viatris Inc VTRS has agreed to acquire Oyster Point Pharma Inc OYST as the foundation of its new ophthalmology franchise.
Viatris will commence a tender offer for $11.00 per share in cash at closing, plus a contingent value right (CVR) for a potential cash payment of up to $2.00 per share upon achievement of specified performance targets by Oyster Point Pharma for the full year 2022.
"Oyster Point Pharma brings to Viatris the strength of TYRVAYA Nasal Spray, the first and only FDA-approved nasal spray for dry eye in the U.S., an eye care-focused pipeline," said Michael Goettler, chief executive officer of Viatris.
In November 2021, Oyster Point Pharma launched Tyrvaya, the first and only FDA-approved nasal spray for the signs and symptoms of dry eye disease.
The transaction is anticipated to close during the first quarter of 2023.
Viatris reported Q3 sales of $4.07 billion, down 10% Y/Y and below the consensus of $4.14 billion.
The company reported adjusted net earnings of $1.1 billion, down 11%.
It reaffirmed FY22 sales guidance at $16.2 - $16.7 billion versus the consensus of $16.50 billion.
Price Action: OYST shares are up 39.5% at $11.65, and VTRS shares are up 13.87% at $11.05 on the last check Monday.

Earnings Calendar