In a landmark deal for the biotech industry, US pharmaceutical giant Merck, known as MSD in the UK, has acquired EyeBio, a London-based startup co-founded by Dame Kate Bingham, for up to $3bn (£2.36bn). . .
This acquisition is expected to revolutionize blindness treatments.
Merck has committed to making an initial payment of $1.3bn (£1bn) for EyeBio, plus an additional $1.7bn contingent on meeting certain milestones. The rapid success of EyeBio, which has raised just $130 million since its founding in August 2021, was described by Dame Kate Bingham as “amazing”.
Bingham's venture capital firm, SV Health Investors, founded EyeBio with scientists David Guyer and Tony Adamis. Since its inception, Ms Kate has served as Chairman of the company, building on her prominent position as one of the key figures behind the successful rollout of the Covid-19 vaccine in the UK.
Ms Bingham was instrumental in leading the UK's vaccine task force in early 2020, and was named a Dame for her efforts to secure Covid-19 vaccines, which enabled the UK to become the first Western country to begin vaccinating its population in late 2020. This role At the end of 2020 she returned to her position at SV Health Investors as Managing Partner.
The Merck acquisition is expected to accelerate the development of EyeBio's innovative treatments for eye diseases. EyeBio's primary focus has been on diabetic macular edema and age-related macular disease, two of the most prevalent causes of blindness in the Western world. Ms Kate told the Financial Times that the company's drugs had the potential to “revolutionize the treatment” of these conditions.
David Goyer, CEO and President of EyeBio, highlighted the benefits of the acquisition: “As a Merck subsidiary, EyeBio will be positioned to leverage the resources and infrastructure needed to support the clinical, regulatory and commercial development of these candidates and help bring them to patients around the world.
Merck's acquisition of EyeBio is consistent with its strategy to bolster its drug pipeline, particularly as the blockbuster cancer drug approaches the end of its patent. This transaction not only represents significant progress for EyeBio, but also underscores the critical role that innovative biotechnology companies play in transforming healthcare outcomes.