Merck & Co., Inc. MRK is reportedly on the verge of acquiring EyeBio, an eye drug company, for a sum of $1.3 billion. This acquisition is expected to significantly expand Merck’s presence in the rapidly growing eye-care market.
What Happened: The deal, which could be announced as early as Wednesday, will see Merck pay $1.3 billion in cash upfront to acquire EyeBio, a privately held biotech firm. Merck could also make additional payments of up to $1.7 billion, contingent on certain milestones, reported The Wall Street Journal on Tuesday, citing people familiar with the matter.
EyeBio’s lead drug, Restoret, is currently in development to treat various eye conditions, including a form of age-related macular degeneration (AMD) that can lead to blurred vision and potential blindness. The drug has recently completed midstage testing for Wet AMD and another eye condition called diabetic macular edema.
The global AMD market is projected to surpass $18 billion by 2030, up from over $10 billion in 2022, according to Grand View Research.
Why It Matters: This acquisition marks a strategic move by Merck to diversify its portfolio beyond its top-selling drug, Keytruda, a cancer immunotherapy. Keytruda accounted for over 40% of Merck’s $60 billion in sales last year. The drug is expected to lose its main patent protection in 2028, prompting Merck to seek other revenue streams.
Merck has been actively seeking to reduce its dependence on Keytruda, with recent acquisitions including the $10.8 billion purchase of immune-drug developer Prometheus Biosciences and the $11.5 billion acquisition of Acceleron Pharma in 2021.
Merck’s move into the eye-care market is in line with a broader trend in the pharmaceutical sector, where companies are seeking to diversify through relatively smaller-size deals to prepare for upcoming patent cliffs.
Other recent notable acquisitions in the eye-care market include Bausch + Lomb’s acquisition of a dry-eye drug from Novartis for $1.75 billion and Japan’s Astellas Pharma’s acquisition of Iveric Bio for approximately $5.9 billion.
Moreover, Merck’s efforts to expand its portfolio are in line with the broader industry trend. In 2023, AstraZeneca, Merck, and GSK struck record licensing deals with Chinese drugmakers, indicating a concerted effort by major pharmaceutical companies to diversify and expand their offerings.
Price Action: Despite the recent acquisitions, Merck’s stock has been underperforming, with a 7.5% drop in the last month. However, the stock has seen a 2.3% increase in the last five days.
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Image Via Pixabay
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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